Funding Circle, a leading peer to peer lender that targets small business loans, has announced a significant commitment by Victory Park Capital to finance up to $420 million in loans to small business originated via Funding Circle in both the UK and US over the next three years. Victory Park was an early partner with Funding Circle in the US.
“We’re pleased to be welcoming additional new financing to the marketplace, which will further support small businesses”, said Samir Desai, CEO and co-founder of Funding Circle. “Today’s news is a significant step on our journey to creating the global infrastructure where any investor, big or small, can lend to creditworthy small businesses looking to grow.”
Funding Circle described the new agreement as significantly extending the existing relationship between the two companies. Launched in 2010, Funding Circle has now facilitated more than $850 million in loans to 8,000 small businesses globally. Funding Circle is currently lending £40 million per month in the UK and with the help of this new partnership, they expect this could double over the next 12 months
Victory Park Capital, an asset management firm, has been actively involved in the marketplace lending sector since 2010 and has reportedly made more than US $2.2 billion of investments and commitments across a number of financial technology platforms, multiple geographies (US, UK and Europe), products (consumer and business) and structures (whole loans and senior credit facilities).
Gordon Watson, Principal of Victory Park Capital, commented on the new agreement;
“Funding Circle has experienced tremendous growth over the past year and we are pleased to expand our on-going partnership to both sides of the Atlantic. With this additional lending facility, Funding Circle will be well-positioned to continue to disrupt the traditional banking model through 2015 and beyond.”