Unique P2P Lender Folk2Folk Says it Will Top £1 Million Profit for Fiscal Year

Folk2Folk, a unique peer-to-peer lender serving SMEs that operates multiple physical locations, has announced it expects to turn a seven-figure profit for its 2020 financial year.

According to Folk2Folk, the anticipated profit of around £1 million is a significant increase from the company’s pre-tax profit of £198,000 for the previous year, and marks two consecutive years of profit for the company. Folk2Folk adds that it has experienced a strong start of the year having hit a lending milestone of £400 million, strong interest in its IFISA as well as a growing broker team. March 2020 has been the company’s biggest month to date originating £15 million in P2P loans.

Folk2Folk Managing Director Roy Warren says that platform profitability is of increasing importance to all stakeholders, with investors, in particular, seeking stable investment vehicles and returns.

“Despite the headwinds presented by COVID-19, we have gone beyond our 2020 profit target which was set well before the outbreak of the pandemic, making it an even more meaningful achievement for us,” said Warren.  “We believe this resulted from keeping our doors open and remaining supportive, for all our borrowers and investors alike. We helped other business stay afloat, and made a profit ourselves by doing so.  We take a very human approach and I think that shone through particularly brightly last year and stood us in very good stead.”

Warren added that their strong cashflow positions them well to invest in growth for the future.

Folk2Folk states that during 2020 it facilitated around £60 million in lending to SMEs enabling hundreds of small businesses across a variety of sectors to grow, diversify or adapt to the new Covid-19 environment. The company delivered around £12 million in gross interest payments to its investors, who typically earn a 6.5% p.a. interest rate.

The audit of the accounts is expected to be complete at the end of April, with full audited accounts available via Companies House.

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