Folk2Folk, a unique peer-to-peer lender operating in the UK, reports that it has now topped £500 million in lending boosted by a record amount of £108 million in lending during 2021. Lending almost doubled in 2021 in comparison to 2020.
Folk2Folk is an FCA authorized platform that connects investors to UK SMEs. These lenders provides important access to capital for secured loans at a fixed rate providing a key path for smaller firms to borrow money from both individuals and institutional investors.
Folk2Folk claims that “hundreds of business-owners” in the UK have been enabled to “fulfill their business aspirations and contribute to the health and growth of their local and regional economies.” The platform is sector agnostic when it comes to lending and Folk2Folk is one of a few lenders that remains open to retail investors as many P2P/marketplace lenders have exited the retail investors’ segment.
Folk2Folk notes that its single largest loan during 2021 was for £12 million – double the size of the company’s largest loan of 2020.
Investors are said to typically receive 6.5% p.a interest which is paid monthly and secured against land/property. Of the £108 million invested into loans during 2021, 20% was invested via Folk2Folk’s Innovative Finance ISA (IFISA).
Roy Warren, Folk2Folk Managing Director, commented:
“An 80% uplift in the total value of completed loans in just one year is significant by anyone’s measure and, coupled with our consistent and growing profitability, signifies a very exciting future for FOLK2FOLK. We are proud to have maintained our zero capital losses record through this period of growth and maintained a controlled default rate. However, our grip remains firmly on the tiller with regards to our internal credit processes and portfolio management. We are inspired every day by the energy and resilience we see in the business-owners we help. Our mission is, and always has been, to help create and sustain financially successful rural and regional communities. We deeply believe that the health of these local economies is essential for the UK’s post-Brexit, post-pandemic recovery and that is why we are unwavering in our determination to channel funding into new and existing businesses in these areas.”