Funding Circle, the world's leading online
marketplace for small business loans,
today announces that Victory Park Capital,
an asset management firm based in the
US and an active lender to UK and
European companies, will finance up
to $420 million in loans to small
businesses originated through
Funding Circle both in the UK
and US over the next three years.
This new, long-term agreement, which
significantly extends the existing relationship
between Funding Circle and Victory Park Capital,
will allow Funding Circle to provide a much
needed further injection of funding into the small
business sector and reflects the strong growth
of Funding Circle globally over the past twelve
months. Funding Circle has now facilitated more
than $850 million in loans to 8,000 small
businesses globally.
Victory Park Capital has been actively involved
in the marketplace lending sector since 2010 and
has made more than US$2.2 billion of investments
and commitments across a number of financial
technology platforms, multiple geographies
(US, UK and Europe), products
(consumer and business) and structures
(whole loans and senior credit facilities).
The investment combines cutting-edge technology
with market leading financial solutions.
Victory Park Capital was an early institutional
partner to Funding Circle in the US and
this new funding will be invested across all risk
bands, in accordance with Funding Circle's
industry-leading credit criteria.
Gordon Watson, Principal of
Victory Park Capital, commented: "Funding Circle
has experienced tremendous growth over the
past year and we are pleased to expand our
on-going partnership to both sides of the Atlantic.
With this additional lending facility,
Funding Circle will be well-positioned
to continue to disrupt the traditional banking
model through 2015 and beyond."
Samir Desai, CEO and co-founder of
Funding Circle, added: "We're pleased to be
welcoming additional new financing to the
marketplace, which will further support small
businesses. Today's news is a significant step
on our journey to creating the global infrastructure
where any investor, big or small, can lend
to creditworthy small businesses looking to grow."
Sachin Patel, Head of UK Capital Markets
at Funding Circle, said: "Partnering with
Victory Park both in the UK and US is testament
to our proven track record in facilitating loans
with attractive yields and consistent credit
performance. Funding Circle is opening up
an asset class to investors that has previously
only been available to high street banks."
Launched in 2010, Funding Circle is
helping to spark a global revolution in the way
small businesses access finance, disrupting
the traditional model of banking.
Funding Circle's proven model enables
businesses to access finance in a matter of days,
directly from investors who earn high, stable returns.
Through Funding Circle, businesses typically
access the capital they need in seven days
compared to 15-20 weeks with a bank.
Independent research* has found that three
in four businesses would come to Funding Circle
first in future, ahead of a bank.
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