3 features that make our marketplace remarkable
Funding Circle is the leading global marketplace for small business lending. Co-founder Sam Hodges recently sat down with The SV Startups 100 — a Japanese media project that introduces the hottest Silicon Valley companies to Asian markets — to discuss the impact that Funding Circle is having on the global lending landscape.
Watch the video below to learn more about Funding Circle, and to see what we’re doing to bring fair and transparent financing to business owners all over the world.
The video covers more details about our unique marketplace lending model, but here are three distinguishing characteristics that make our marketplace remarkable:
1. All we do is small business lending
“While many of the other marketplace lenders do a lot of consumer lending, all we’ve ever done — all we intend to do — is deliver credit to great small business owners.”
Our exclusive emphasis on small businesses benefits investors and borrowers alike. We’ve created a unique underwriting process based on data specifically focused on small businesses and our Risk & Analytics team brings decades of experience pricing risk in the US small business sector. Unlike some other marketplaces that rely primarily on traditional modeling to make credit decisions, our models are informed by innovative technology and proprietary data analytics, as well as seasoned human underwriters who understand the nuanced nature of small business creditworthiness. This laser focus has also allowed us to design an attractive loan product and exceptional customer experience for small business owners.
2. We’re focused on both sides of the marketplace
“We have a broad set of investors — individuals and institutions who are looking for really high quality investment products with strong yield characteristics.”
It used to be difficult for prudent investors to find a way to invest in small businesses, but in 2010, we started building a marketplace with multiple points of access for a diverse set of investors, so you can easily expand your portfolio by investing in our secured notes.
Globally, we have about 45,000 retail investors buying pieces of the loans that go up on our marketplace every day. Meanwhile, institutions (including the Bank of England) are able to purchase whole loans on the marketplace. In the United States, accredited investors have access to a diverse asset class and can either hand select which small businesses they want to support or build a diversified portfolio by enrolling in our automated investing option.
3. We’re international
“No other marketplace lender has this kind of reach.”
Funding Circle facilitates small business lending across five different countries. Already, more than 15,000 small businesses in the US, UK, Germany, Spain and the Netherlands have received over $2 billion in affordable financing — creating an estimated 60,000 new jobs globally. Our commitment to fair and transparent lending practices permeates every aspect of our business, which means that when you invest in a Funding Circle loan you’re helping to build a better financial world.
Want to start investing on our marketplace? Click here to learn how.