Funding Circle, Sage to Streamline Financing for Small Businesses

Funding Circle (LSE:FCH) has announced a partnership with Sage, a firm focused on accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs).

The collaboration “makes it simpler for small businesses to secure funding.”

With the incorporation of Sage Accounting and Funding Circle’s API, users who are limited companies will now be “able to apply for loans and manage their cash flow easily, with quick and efficient loan application processing and decisions made in minutes.”

The service will first launch in the UK with small businesses using Sage Accounting software “will be able to apply for business loans ranging from £10,000 to £500,000, with the option to repay the loan over a period of six months to six years.”

They will also “have access to Funding Circle’s new product, FlexiPay, which is an interest-free line of credit that helps small businesses manage their cash flow.”

With more than 130,000 businesses in the UK and US accessing over £14.5 billion through Funding Circle, and Sage serving millions of customers globally, this partnership is “set to revolutionize access to funding for small businesses.”

Additionally, Funding Circle and Sage intend “to develop the partnership with the ambition to expand internationally, including in the US where Funding Circle has a material and growing presence as a small business lending provider.”

Alexander Allen, UK Managing Director at Funding Circle, commented on the partnership saying they are increasing access to funding for more small businesses and they are looking forward to expanding the service into the US.

Neal Watkins, Executive Vice President of Product at Sage, added that the partnership simplifies the process of accessing loans and money for SMEs.

Established in the UK in 2010, and now the leading lending platform to SMEs, the Group also has “a material and growing presence in the US.”

Globally, Funding Circle has “provided £14.5bn in loans to c.130,000 businesses.”

For small business borrowers, Funding Circle provides a customer experience, “delivered through its technology, machine learning, and data science, coupled with a human touch.”

Its solutions continue “to help customers access the funding they need to succeed.”

For lending investors, Funding Circle provides access to “an alternative asset class in an underserved market and delivers robust and attractive returns.”

As mentioned in the update, Sage exists “to knock down barriers so everyone can thrive, starting with the millions of Small and Mid-Sized Businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow.”

By digitizing business processes and relationships with customers, suppliers, employees, banks and governments, their digital network “connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.”

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