Funding Circle
One of the UK's largest SME lending platforms, listed on the London Stock Exchange. Facilitates loans to small and medium businesses funded by institutional and retail investors.
General Information
Funding Circle Ltd (FRN 722513) is one of the UK's largest and most established peer-to-peer lending platforms, founded in 2010 and listed on the London Stock Exchange (ticker: FCH) since 2018. The platform facilitates loans to small and medium-sized businesses, funded historically by a combination of retail investors, institutional investors, and government-backed programmes including the British Business Bank.
At its peak, Funding Circle operated across the UK, US, Germany, and the Netherlands, although it has since concentrated operations on its core UK market. The platform has facilitated over £15 billion in lending to more than 100,000 businesses since inception, making it the largest P2P business lender in the UK by volume.
In 2023, Funding Circle ceased accepting new retail investor capital, pivoting fully to institutional and balance-sheet lending. Existing retail investor loan books continue to run off. The company now positions itself as a technology-enabled SME lender rather than a peer-to-peer platform.
How does it work?
Funding Circle uses proprietary credit assessment technology to underwrite SME loans, combining traditional financial data with alternative data sources. The platform's underwriting engine evaluates thousands of data points per application.
What do they offer?
Funding Circle's retail P2P product is now closed to new investors. Historically, investors could access diversified portfolios of SME loans with projected returns in the mid-single-digit range. Loans were typically unsecured, with terms of 6 months to 5 years.
The platform offered an IFISA wrapper for tax-efficient investing. The secondary market was closed as part of the wind-down of the retail book.
Who is it for?
Funding Circle's retail P2P product is no longer accepting new investors. The platform's legacy is significant as a pioneer of UK SME P2P lending and one of the few platforms to achieve a public listing. Existing investors' loan books continue to amortise. The company continues to operate as an institutional SME lender.
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Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice and should not be considered as such. In particular, it does not constitute personal advice — please consult a qualified financial adviser to address your particular personal requirements. Other is not regulated by the Financial Conduct Authority (FCA), its authors are not financial advisers and it is therefore not authorised to offer financial advice. This article is not intended as an offer, invitation or solicitation for the purchase or sale of any investment, nor is its issuance intended to give rise to any other legal relations whatsoever and must not be relied upon for the purposes of any investment decision. The information contained in this article is subject to updating, revision and amendment.
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