Funding Circle: London-based lending platform helping small businesses raise £ 30m from BBI

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British Business Investments, a Sheffield-based investment management company, recently announced a £ 30 million commitment to support UK small businesses through Funding Circle’s UK SME Direct Lending Fund. It is worth noting that Funding Circle is a credit platform for small and medium-sized enterprises (“SMEs”).

UK SME Direct Loan Fund

The UK SME Direct Lending Fund, launched in July 2019, offers institutional investors, including pension funds, insurance companies and local government agencies, the opportunity to lend directly to a diversified SME portfolio of Funding Circle.

Judith Hartley, CEO of British Business Investments, said: “One of the goals of British Business Investments is to support the development of various financial markets. We’ve helped FinTech and marketplace lenders grow from the start, and lenders like Funding Circle help provide competition and choice to smaller businesses. This commitment enables smaller businesses across the UK to get the funding they need to realize their growth potential. “

Investing in Smaller Businesses

After Funding Circle was accredited for lending under the Coronavirus Business Interruption Loan Scheme (CBILS) in April 2020, the fund then received approval to expand its investment strategy to include investments in CBILS loans. That means more investors have been able to help smaller businesses recover from the effects of COVID-19.

By lending directly to companies through Funding Circle, investors can now earn attractive returns to better cover their future. According to the company, companies get quick and easy access to finance to grow, create jobs, support local communities, and fuel the economy.

Various investors, including private individuals, the British Business Bank, the European Investment Bank, the Merseyside Pension Fund and financial institutions such as asset management and insurance companies, lend loans through this platform.

Sachin Patel, Funding Circle’s Chief Capital Officer, said, “By investing in our fund, investors can generate attractive risk-adjusted returns while contributing to economic growth and job creation. This latest support from British Business Investments shows the vital role FinTechs can play in lending to small businesses in all weathers. We look forward to welcoming more investors in the near future. “

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