Newly LSE-listed Funding Circle shared positive findings today, citing its marketplace as the 3rd largest source of finance to UK small businesses in Q3. James Meekings, co-founder and UK Managing Director of Funding Circle, commented on Bank of England’s newly released Funding for Lending data for Q3.
“When you look at net lending, which is essentially new money into the economy, the Funding Circle marketplace was the 3rd largest source of finance to UK small businesses in Q3 (*Based on Q3 2015 lending figures included in today’s Funding for Lending data, and Q3 2015 Funding Circle lending (£146m) minus repayments (£54.5m),” averred Meekings, co-founder and UK Managing Director of Funding Circle. “Whilst the Funding for Lending scheme has helped, take up has not driven substantial increases in net lending because it doesn’t solve the cumbersome bank lending process. New forms of innovative finance are growing exponentially however, as they offer a fundamentally better all-round experience to small businesses.”
|FLS participant||Net lending to SMEs Q3 2015 (£m)|
|Lloyds Banking Group||275|
|Yorkshire Building Society||38|
|Julian Hodge Bank||22|
|Cambridge & Counties Bank||21|
Funding Circle has raised $273 million in equity funding from investors such as DST, BlackRock, Temasek and Index Ventures. In April, Funding Circle announced its Series E round for $150 million, one of Europe’s largest fundraising rounds this year. Funding Circle has lent more than $1.5B to businesses in the UK and US through the Funding Circle marketplace since its inception, according to The Telegraph.