Peer-to-peer business lender Folk 2 Folk is seeking to boost lending by engaging with brokers.
The company says brokers are playing a growing role in credit assessment and underwriting as demand for alternative assets increases. As a specialist property-backed business lender, Folk 2 Folk is now offering Inside Credit, a broker engagement initiative that aims to provide greater visibility into the lending process, giving brokers insight to assess and approve deals.
Fraser Clark, Head of Credit at Folk 2 Folk, says lending criteria is important, but only part of the story. A loan can appear solid on paper, but questions may remain about security, structure, and overall risk. Some deals that may appear challenging can become viable once more information is provided.
“Inside Credit is about giving brokers direct access to the thinking behind our lending decisions and helping them understand how opportunities are assessed in practice,” says Clark.
Kawai Chung, Chief Executive Officer of Folk 2 Folk, says that as the market is more selective, lenders must make their lending easier to understand.
Folk 2 Folk was founded in 2013 and has lent about £820 million to UK SMEs. All loans are secured by property.
Recently, the company has sought to expand its investor base to boost lending and drive top-line growth, including by attracting institutional capital.