Online lending platform Funding Circle announced on Thursday its plans to enter the Canadian market and expand access to fast, affordable and transparent financing for Canadian small businesses. The lender revealed it will establish operations in Canada in the second half of 2019 with an office located in Toronto. The operation will be led by Tom Eilon, who previously led the commercial strategy for Funding Circle in the UK. Speaking about the Canadian launch plans, Eilon stated:
“We have been evaluating options for expansion over the last year. Canada’s stable, growing economy coupled with good access to credit data and progressive regulatory environment made it the obvious choice. The most important factor though was the clear need for additional funding options among Canadian SMEs. We are looking forward to officially launching later this year and supporting Canadian SMEs to access the finance they need to grow, create new jobs and fuel their local economies.”
Jennifer Reynolds, President and CEO, Toronto Finance International, also commented:
“Funding Circle’s entry into the Canadian market is a fantastic addition to the thriving Fintech sector in Toronto, and a welcome added option for small business to access finance.”
Since its launch in 2010, Funding Circle reported it has connected more than 60,000 small businesses around the world with financing through its online platform. The lending platform went on to add that in the U.S. it now has $1 billion small business loans outstanding, more than almost 98% of FDIC-insured banks. Funding Circle currently has operations in the UK, U.S., Germany, and the Netherlands.
According to Peer2Peer Finance News, Funding Circle has seen a 55% rise in full-year revenues, with posting revenues of £141.9 million, up from £94.5 million the previous year. It was also revealed that the lender grew the value of its loans under management (excluding property) to £3.15 billion in 2018 – a 55% year-on-year increase and 2018 originations (excluding property) grew by 40% to reach £2.29 billion.