Funding Circle Grabs $65 M
UK-based small business P2P lending platform Funding Circle is $65 million richer and is planning to use that money to expand more aggressively into the U.S. market.
The healthy injection of funds all comes from existing investors. The company allows individual investors or institutions to offer loans to small and midsize businesses of a variety of types that will allow the expansion or enhancement of their business efforts. The loans are not typically very large and tend to range in value from $25K to $500K—with an average hovering at about $150K. The interest rates are high—from 9.99 percent to 20.99 percent, depending on duration and risk profile of the loan applicant.
“Our loans are being used to generate real economic value within these businesses, which goes to show the type of borrower we’re serving and the closeness of the match to their financing needs,” Managing Director Sam Hodges told Venture Beat.
Funding Circle anticipates to lend out around $100 million to American borrowers by the end of the year, which will allow the company to zero in on its target of $550 in loans made worldwide. Funding Circle in the U.S. facilitated around $6.6 million in lending across 56 loans last month.
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