In a boost for the UK’s small and medium-sized enterprise (SME) financing sector, Funding Circle Holdings plc (LSE: FCH) has announced a partnership renewal that will propel it past the £3 billion total financing milestone.
The development, revealed on September 17, 2025, underscores the fintech’s resilience and strategic prowess as it continues to support the backbone of the UK economy.
The latest £750 million forward funding commitment from Waterfall Asset Management, in collaboration with BNP Paribas, marks a pivotal renewal of their alliance, which dates back to 2018.
This agreement adds to Funding Circle’s existing £1.6 billion in forward funding as of June 30, 2025, ensuring liquidity to fuel future loan originations.
Collectively, the partnership has now facilitated over £3 billion in financing for UK businesses, a testament to the platform’s technology, credit assessments, and ability to deliver returns for investors.
Dipesh Mehta, Funding Circle’s Chief Capital Officer, expressed enthusiasm about the extension:
“This renewed commitment is a testament to the quality of our platform and our shared mission to provide vital funding to the UK’s small businesses.”
James Cuby, Head of Europe at Waterfall, echoed this sentiment, highlighting the underserved nature of the SME lending market:
“This segment has long been underserved by traditional lenders and we have been impressed by Funding Circle’s track record and expertise in enabling investors to access this asset class.”
Ghanem Al-Araj from BNP Paribas’ Securitised Products Group added,
“This transaction demonstrates our ongoing commitment to enabling Funding Circle to deliver vital funding solutions to UK SMEs that drive growth and fuel the UK economy.”
This milestone arrives on the heels of Funding Circle’s Half Year 2025 Results, released concurrently, which paint a picture of accelerating momentum.
For the six months ended June 30, 2025, the company reported a 17% year-on-year revenue increase to £92.3 million, up from £79.1 million in the prior period.
Profit before tax (PBT) surged to £6.0 million, a stark improvement from the £0.5 million (pre-exceptionals) or £2.1 million loss recorded in H1 2024.
The Term Loans segment, a core pillar, drove £12.7 million in PBT, benefiting from products and operational efficiencies, while the newer FlexiPay offering narrowed its pre-exceptional loss to £6.7 million from £8.7 million as it scaled rapidly.
Key operational metrics further highlight the company’s traction.
Credit extended rose 21% to £1,111 million, with Term Loans originations climbing 6% to £736 million and FlexiPay transactions surging 66% to £375 million.
Loans under management (LuM) remained stable at £2,829 million, though FlexiPay balances grew 42% to £169 million, pushing cumulative FlexiPay transactions past the £1 billion mark since its launch.
Over 80% of 2025 revenue came from existing customers, bolstered by the soft launch of the Cashback credit card in late 2024.
CEO Lisa Jacobs attributed this performance to a customer-centric strategy leveraging proprietary data, AI-powered credit models, and seamless product integration.
She said:
“We are delivering strong, profitable growth with £1.1 billion in credit extended and 17% revenue growth, positioning the company to meet more customer needs.”
Unrestricted cash stood at £115.0 million, down from £150.5 million at year-end 2024 due to £19 million in share buybacks (part of a £75 million program that has repurchased 50 million shares since March 2024), investments in FlexiPay, and R&D for a forthcoming shorter-term lending product.
Strategically, Funding Circle is focusing on expanding its Marketplace offerings, scaling cashflow-based products, and enhancing lifetime customer experiences.
The board saw transitions, with Ken Stannard appointed Chairman in May 2025, alongside updates to key committee roles.
Looking ahead, Funding Circle reaffirmed its medium-term targets for FY 2026: at least £200 million in revenue and £30 million in PBT, with 15-20% CAGR from FY 2023 and PBT margins exceeding 15%.
The Waterfall renewal not only cements this trajectory but also aims to reinforce Funding Circle’s role in bridging the SME funding gap.
Since 2010, the platform has extended nearly £16 billion to over 110,000 businesses.
As economic uncertainties linger, these updates seemingly signal Funding Circle’s maturation into a profitable, scalable force.
By combining financing with reliable partnerships, the company is poised to empower UK SMEs, fostering growth and innovation across the nation.