As part of the Business Finance Partnership package, Cable has pledged £55 million to peer-to-peer lenders and other finance suppliers.
The structure of the capital means that match funding from the private sector is expected to generate an extra £55 million, taking the total to £110 million over the coming years.
Online debt lending platform Funding Circle has been allocated £20 million of the £55 million pie. The crowdfunding business allows UK people to lend money directly to small companies in the UK.
Samir Desai, CEO and co-founder of Funding Circle, says, ‘Not only is this a huge vote of confidence for peer-to-peer lending, it’s a defining moment for the future of small business finance.
Read More at Growth Business UK