A revolution in small business lending. August industry news
This month, one of our borrowers Jenny Brown, was featured in this great article about her experience of getting a business loan for her company, Pampeano. She discusses her experience with banks versus her experience with marketplace lending. With sophisticated technology, online platforms are able to assess the credit risk of a business and help investors to deliver cash much faster than a bank. Last year, around £1.6 billion of loans were granted by these platforms and this figure is set to almost double this year. Another borrower of ours, The Stripes Company, was also highlighted in an article published in the Daily Mail.
A massive congrats to Zopa on their huge milestone; the platform has now facilitated its billionth pound in consumer loans. For the past five years, Zopa’s loanbook has grown between 70 and 100 percent a year and is on track to increase even more. This substantial growth is seen across the sector as more investors and borrowers look to marketplace lending for business and consumer loans.
Prevailing attitudes about Europe being able to produce successful global companies are beginning to change, as Britain continues to build a powerful fintech sector. In the second quarter of this year alone, nearly €3.5 billion has been raised by European tech firms. In this article bylined by our CEO, Samir Desai, he discusses the importance of embracing this innovation.
Last month, Funding Circle US, along with five other marketplace lending platforms in the US, helped lead the charge to launch a Small Business Bill of Rights. Sam Hodges, our US Managing Director, talks about the importance of a Bill of Rights in order to protect small businesses and promote transparency in the sector. The six key rights can be found here, and there was further coverage in Forbes and Reuters.
Simon Champ, CEO of P2PGI – a large marketplace investor, discusses how disruption in financial services has not yet reached the same levels as sectors such as e-commerce and travel. Marketplace lending platforms are beginning to change that as we continue to see immense growth within these tech firms. It’s only a matter of time before we see marketplace lending become the accepted way for people or businesses to grow money – the disruption of financial services has only just begun.
Funding Circle is set to do over £35 million in revenue this year — and it hasn’t spent any of the £97 million it raised
And last but certainly not least, on the 26th August Funding Circle celebrated it’s 5th birthday! Investors are now lending more than $100 million a month via our platform across the UK and the US, helping hundreds of small businesses access business finance, so thank you to all our customers for your continued support. To read more about what we’re up to at the moment, check out our blog. Any questions? Please get in touch.