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Funding Circle pass £200million in loans
In September 2013 we reported Funding Circle has broken the £150million mark, and less than 4 months later they have passed the £200million barrier. This is quite an achievement for a company that only started facilitating peer-to-peer loans less than 4 years ago.
Funding Circle have released the following press release:
Today, British investors have reached a major milestone having lent more than £200m to UK businesses through Funding Circle in less than three and a half years.
As the UK’s leading peer-to-peer lending marketplace exclusively for business borrowers, Funding Circle has helped over 3,000 businesses access the finance they need to grow and expand.
Of the £200m total, £130m has been lent out in 2013 alone, creating an estimated 6,150 jobs across the country.
British people and organisations such as the Government, councils and universities, continue to lend record amounts whilst earning inflation beating rates. The record week for lending was in December 2013, when £5.3 million made its way to businesses across the UK in just seven days.
The exponential growth has led to independent estimations that Funding Circle could account for between 10%-20% of the small business lending market in the next ten years.
James Meekings, co-founder of Funding Circle, said:
“Over the last three years, Funding Circle has provided businesses with a faster, more efficient way of accessing the finance they need. What we are seeing now is not just the emergence of a challenger model but a fundamentally better method of borrowing and lending that will continue to grow in importance over the coming years.”
“Independent research has shown that 77% of businesses that have borrowed through us would come back to us first, over traditional sources of finance.”
Launched in August 2010, Funding Circle enables businesses to access finance independent of their banks, whilst at the same time allowing British people to earn attractive, stable returns for the long-term. This process sidesteps the high street banks with businesses receiving finance in a matter of days compared to up to three months for a traditional bank loan.
To date, more than £200 million of loans have been lent to small businesses across the UK. To be eligible, businesses must have a minimum turnover of £100,000 and have been trading for at least two years.
Once businesses pass Funding Circle’s credit assessment processes, their loan is posted on the marketplace. From here, investors choose which type of businesses to lend to, and bid the amount of money they wish to lend, and the interest rate they want to earn. Investors can bid small amounts, from as little as £20, on lots of different businesses to spread their risk.