Funding Circle reaches £200 million milestone in business lending

Peer-to-peer lending platform Funding Circle has surpassed £200 million in funding to UK businesses in the past three years.


Peer-to-peer lending platform Funding Circle has surpassed £200 million in funding to UK businesses in the past three years.

The organisation has helped more than 3,000 businesses access the finance they need to grow and expand.

Of the £200 million total, £130 million 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 while 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, according to the platform.

Funding Circle co-founder James Meekings says, ‘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.’

Launched in August 2010, Funding Circle enables businesses to access finance independent of their banks, while at the same time allowing British people to earn attractive, stable returns for the long term.

The 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 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.

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