A quiet crash in bank lending? March industry news
Bank of England statistics reveal that since the EU referendum, net lending (that’s total lending minus repayments) to British small businesses by 22 of the largest banks dropped from £1 billion in the second quarter of 2016, down to just £220 million in the last three months of the year. Meanwhile, Funding Circle investors lent £167 million on a net basis in Q4 alone! This is a great demonstration of the huge value your lending is having on the UK economy.
Helen Smith, founder of Glogg and one of Funding Circle’s many great borrowers, shares her company’s success story and experience of using direct lending for growth finance in The Times. When Glastonbury needed a business to produce 200,000 stainless steel pint cups for last year’s festival, Glogg stepped up to the challenge. Turning to Funding Circle for support, Helen was able to secure funding from hundreds of investors and the project was a huge success. Read the full story on our blog.
It was also great to see Samir Desai, Funding Circle CEO, featured in the The Sunday Times Maserati 100 list, which recognises influential entrepreneurs who are disrupting the business world. In it’s third year, the award took a new approach and focused on celebrating the beneficial impact that these individuals are having on the economy. This type of recognition is only possible because of the continued support we receive from our customers on both sides of the platform so thank you!
With inflation on the rise, an article in This is Money explores a few tricks to help make your spare cash work harder. By considering these options, such as direct lending or investing in stocks and shares, you don’t have to leave your money in a cash Isa that loses value over time. Read more about direct lending and how you could earn stable, attractive returns by lending to small businesses – but remember, when you lend, your capital it at risk.
Speaking of financial planning, personal finance expert and former editor at The Independent Simon Read, gives his advice on how to approach financial decisions in our new blog series ‘Read between the lines’. When planning for the new tax year, Simon encourages investors to be proactive and start the process as early in the year as possible so that there’s plenty of time to take any potential changes into account. To learn about what the recent Spring Budget means for you, check out this video on our blog.
And finally, our US business announced that Community Investment Management, an impact investment firm focused on direct lending, is now lending an additional $100 million to American small businesses. This exciting agreement gives even more businesses the opportunity to access the finance they need, which in turn encourages job creation and economic growth in local communities across the United States.