Lisa Jacobs, CEO, said retail lending represents only circa 5% of Funding Circle’s total loans under management, with 90,000 customers using it to lend to small businesses since its launch in 2010. Funds can be withdrawn at any time and Funding Circle added that for any loans which have defaulted, it will “continue to work hard to recover these funds through our Collections, Recoveries and Litigation teams, or by returning funds to you immediately through future sales of debt to third parties”. It will continue to manage customer loan portfolios on an ongoing basis until all remaining loans have been repaid or recovered. This includes buying and selling loans through the secondary market. However, since the pause, retail investors have continued to receive payments from existing non-CBILS borrowers with funds returned on a monthly basis.īut, Funding Circle’s annual results (to 31 December 2021) confirmed it is permanently closing the retail platform to new investments. The secondary market for retail investors was also paused as Funding Circle concentrated on supporting the government’s SME stimulus programme after being accredited to offer the Coronavirus Business Interruption Loan Scheme (CBILS).
In 2021, lending through Funding Circle’s UK platform “is estimated to have contributed £7.2bn to GDP and supported 100,000 jobs.The SME loans platform paused peer-to-peer (P2P) lending for retail customers in April 2020 to protect investor returns amid the uncertain economic environment. This is providing small businesses “with the fast and simple access finance they need to grow and power the economy.” £14 billion to approximately 120,000 businesses globally.” These public capital market transactions “are further recognition of the platform’s ability to open up deep and diverse pools of capital to small businesses, creating more choice and competition in the small business lending market.”Īs covered, Funding Circle claims to be the UK’s largest loan platform for SMEs.įounded in 2010, its instant decision lending technology “enables small businesses to apply for finance in an average of six minutes, with lending decisions in as little as nine seconds.”Ī wide range of investors are “utilizing this technology and distribution platform to lend c. Waterfall’s initial £1bn investment in 2018 “included multiple securitizations.” We have been impressed by Funding Circle’s resilience throughout the Covid crisis and believe Funding Circle’s platform and technology will be effective in enabling investors to access this asset class and supporting borrowers in the post-pandemic recovery.” “We are pleased to continue our partnership with Funding Circle and to support SME lending in the UK. Henrik Malmer, Managing Director at Waterfall, said: It’s great to see a wide range of investors leveraging Funding Circle’s machine learning and technology capabilities to lend to SMEs at both speed and scale.” “We are proud of our four-year partnership with Waterfall which will continue to provide tens of thousands of small businesses with the finance they need to drive the post-pandemic recovery.
Waterfall will “lend through the platform alongside a wide range of investors, including banks, asset management companies, insurance companies, government-backed entities, individuals and funds.” More than a decade of investment and innovation in Funding Circle’s technology and data capabilities has “created powerful machine learning models.” These provide Waterfall with “a highly efficient and cost-effective mechanism to deploy capital to the real economy.”įunding Circle’s instant decision capabilities “enable small businesses to apply for finance in an average of six minutes, with lending decisions in as little as nine seconds.” This functionality “is helping provide small businesses with fast and simple access to finance, allowing them to grow and power the economy.”
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