Our Half Year results – how we’re building the place where SMEs get the funding they need to win

We’ve just published our Half Year results, which we’re pleased to say show that we are very well positioned in the market, and are making good early progress against our medium-term goals.

We use world-class technology 

Our market-leading technology has continued to deliver a superior customer experience this year. 70% of UK applications now receive an instant decision – with the average application taking 10 minutes, and decisions coming in as little as 1 hour. Thanks to this incredible technology, we have now supported more than 130,000 businesses with over £14 billion since we started in 2010. 

Our Introducers have been integral to helping us reach this milestone. In the first half of this year, we’ve supported 2,000 businesses with over £250 million of funding as a community, and we’ve worked with over 700 active Introducers who have helped us say yes to more businesses. 

We’re creating significant growth opportunities 

In March, we announced our plan to transform Funding Circle into a multi-product platform, serving a direct and embedded audience. Six months into this plan, we are delivering against our three strategic goals:

• Attract more businesses: we’ve continued to refine and grow our embedded finance solution in the UK.
  
• Say yes to more businesses: we’ve expanded our loan offering to short-term loans so we can serve younger businesses in the UK – and we’ve already helped 106 businesses who would have been unable to get support otherwise.

• #1 in new products – We’ve generated £17 million of originations in H1 and we’ve been able to offer FlexiPay to more customers, with the goal to make it available to Introducers in the near future. If you’d like to know more about this product, please reach out to your BDM. 

We’re in a good position and we have a healthy balance sheet  

Lastly, our financial performance in H1 was ahead of expectations. Funding Circle had a total income of £77.3m, while our net assets are at £299 million, which includes unrestricted cash of £183 million to support business investment and growth. 

Looking forward

In the second half of the year, we will be taking a more prudent approach due to the uncertain economic climate we’re experiencing. We reaffirm that the business will be AEBIDTA* positive for the Full Year results at the end of 2022. 

Our CEO, Lisa Jacobs, said: “We are attracting more businesses, saying yes to more businesses and entering new product categories to enable small businesses to not only borrow with Funding Circle, but pay and spend as well. 

“We are well prepared to manage the business through the challenging macro environment and are confident in our ability to help small businesses do the same. With our market-leading technology, which continues to deliver a superior customer experience, we remain well placed to deliver on our mission to help more small businesses get the funding they need to win.”

If you’d like to hear more about our Half Year results, you can read the full report here. Alternatively if you have any questions, please contact your BDM directly or email us at broker@fundingcircle.com. 

_{*Adjusted EBITDA represents EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) excluding share-based payments, exceptional items and foreign exchange gains or losses. Investment AEBITDA represents investment income, investment expense and fair value adjustments and operating AEBITDA represents AEBITDA excluding investment AEBITDA.}