Funding Circle (LSE: FCH), the UK’s SME lending platform, and Atom bank, the UK’s first app-based bank, announce a new lending partnership that “will provide up to c.£150m of funding to small businesses.”
Atom bank is a “long-standing” and returning investor in the Funding Circle platform. This latest commitment, “the third partnership between the two organizations, brings Atom bank’s total lending with Funding Circle to c.£800m.”
The new lending partnership will “support SMEs through the latest iteration of the Government-backed Recovery Loan Scheme (RLS) offered by Funding Circle, which aims to help improve access to finance for SMEs.”
Atom bank will harness Funding Circle’s powerful technology and distribution platform “to deploy much-needed funds to support UK SMEs and deploy capital to the real economy; helping businesses manage their finances, grow and power their communities.”
Access to finance remains crucial for small businesses, so we’re delighted to once again be partnering with Atom bank to “help more SMEs get the funding they need to win.”
The Recovery Loan Scheme is “an important way for them to be able to say yes to more businesses in line with their medium-term plan, and they’re continuing to extend our track record of delivering robust and attractive loan returns for our investors, in spite of the changing economic environment.”
Lisa Jacobs, CEO at Funding Circle, said:
“We’re delighted to strengthen our long-standing relationship with Atom bank via this new lending partnership. We aim to build strong, long-lasting partnerships with our investors and repeat transactions are a testament to that. The partnership will help support more small businesses to access finance, and further demonstrates our track record at delivering robust and attractive investor returns in changing economic conditions.”
Dipesh Mehta, Co-Head of Global Capital Markets at Funding Circle, said:
“This partnership forms a key part of our ongoing commitment to UK business owners. We have an ambition to suppport as many SMEs as possible as we scale the bank, and continuing to leverage Funding Circle’s market leading tech provides us with a fantastic way to deliver on that ambition.”
As noted in the update, Funding Circle says that it “enables small businesses to access funding, offering a superior customer experience powered by data and technology.”
SMEs can complete an application “in six minutes, receive a decision in as little as nine seconds, and have funds in their account within 24 hours.”
This seamless functionality is allowing Atom bank to “help more small businesses who need fast and simple access to finance. Atom bank is among a wide range of investors that have used Funding Circle’s platform including banks, asset management companies, insurance companies, government-backed entities, and funds.”
