The British Business Bank announces plans to lend a further £40 million to small businesses through Funding Circle
25 February 2014
In response to today’s announcement, Samir Desai CEO and co-founder of Funding Circle said:
“The Government has done a great deal to help raise the profile of non-bank lending over the last 12 months and has strongly encouraged greater competition in the market. Peer-to-peer lending has proven to be the preferred way for many businesses to borrow.”
“Since Funding Circle was awarded £20 million through the Business Finance Partnership in March 2013, 2,000 businesses across the UK have accessed the finance they need to grow. Today’s commitment from the British Business Bank will ensure many more thousand businesses access the finance they need to grow – creating jobs up and down the country.”
What businesses are looking for is access to fast finance in a hassle free way and at a fair and transparent cost. Funding Circle has helped lend more than £225 million to over 4,000 businesses in three years, £140 million of which was lent in the last twelve months, proving that there are more accessible, effective channels for small business lending.
An initial £20 million commitment that began in March 2013, via the Business Finance Partnership, helped to facilitate £140 million of lending to 2,000 small businesses up and down the country, creating an estimated 6,500 jobs across the UK.(1)
(1) Independent research by government think tank Nesta last year found that businesses that receive a loan through Funding Circle employ on average 11 people, and see an average increase in employment of 27 per cent after receiving finance.