March 1, 2019
Funding Circle US Small Business Loan Portfolio Surpasses Most Banks with $2 Billion Lent Through Platform
Funding Circle, the global small business loans platform, today announced that investors have lent more than $2 billion through its platform to small businesses in the United States. With this milestone, Funding Circle now has more US small business loans outstanding than almost 98% of FDIC-insured banks.¹
“The fact that we have reached this milestone within a little more than five years, putting us in the same league as some banks established a century ago, is evidence that small businesses are underserved by the traditional banking system,” said Bernardo Martinez, US Managing Director, Funding Circle. “Our aim is to become businesses’ first choice for financing across the country by continuing to look for more ways to drive a better, faster borrowing experience.”
Funding Circle now has more than $1 billion of small business loans in its portfolio, which means that if it were a bank it would be among the 50 largest small business commercial & industrial loan portfolios in the United States, according to the latest FDIC data available¹. However, unlike a bank, Funding Circle provides a single financial product. Its fully amortizing business loans, powered by sophisticated technology and proprietary credit models, enable business owners to access financing with speed and efficiency, allowing them to devote more time to delivering their product or service to the market and ultimately create more jobs and vitalize their communities.
Since 2013 Funding Circle has built a deep customer base of established small businesses across the United States who are seeking fast, affordable and transparent loans under $500,000. Today 54% of US small businesses still report unmet credit needs², a key issue that hinders their ability to grow, and Funding Circle continues to work to address that gap.
This $2 billion milestone also demonstrates the significant interest in small business loans as an asset class from a range of US investors, including individuals and financial institutions. The Funding Circle model has created access for investors seeking to earn attractive, stable returns by lending capital directly to creditworthy businesses.
¹ Source: Federal Deposit Insurance Corporation (FDIC) Statistics on Depository Institutions. December 2018. “Amount of currently outstanding commercial and industrial loans less than $1,000,000 held in domestic offices.” https://www5.fdic.gov/sdi/download_large_list_outside.asp.
² Federal Reserve Bank. 2018. “2017 Small Business Credit Survey: Report on Employer Firms.” https://www.fedsmallbusiness.org/survey/2018/report-on-employer-firms.