Peer to Peer lender Folk2Folk has posted a preview of 2024 performance. According to the company, its platform generated record revenue for the full year of 2024, marking its sixth consecutive year of profitability.
Folk2Folk said the top-line revenue was £6.6 million for the year, an increase of 17% versus 2023. The increase in revenue helped drive a 43% increase in pre-tax profits to £1.84 million from £1.28 million.
Shareholders also received a dividend for the fourth consecutive year.
Folk2Folk said they experienced an increase in demand for property-backed business loans as SMEs sought financing and investors were enticed by a fixed rate return during a period of stock market volatility. The company said interest rates paid to investors currently start at 8.75%.
Roy Warren, Managing Director of FOLK2FOLK, said the results were a testament to the strength of their model and persistent demand from SMEs across Britain.
“We’re proud to be delivering consistent growth while staying true to our mission of supporting underserved businesses and generating attractive returns for our investors. These results wouldn’t be possible without the continued trust of our investor community,” said Warren. “Importantly, being a stable and profitable platform isn’t just good news for us, it’s a responsibility we take seriously. It enables us to continue serving both borrowers and investors with confidence, to invest in long-term improvements, and to manage all loans, including the more complex cases, with care and diligence.”
Folk2Folk reports that it has now surpassed £760 million in cumulative lending since inception and continues to offer fixed-rate, interest-only loans secured against land and property.
Folk2Folk will publish its fully audited accounts next month.