It has only been a few weeks since P2P lender Funding Circle announced a new $150 million fund for small business lending, but the alternative finance platform is already strengthening its offerings to SMEs looking to access cash. According to reports Tuesday (May 12), the 65,000 members of the National Small Business Association will now have access to financing through Funding Circle thanks to a new partnership between the two.
Reports said that NSBA business members will be able to apply for financing through Funding Circle as well as access resources like business finance educational materials thanks to the collaboration.
“At Funding Circle, we believe America’s 28 million small businesses deserve a better lending experience – successful and established business shouldn’t have to scramble to access affordable financing that is critical to growing their business,” Funding Circle co-founder and U.S. managing director Sam Hodges said in a statement.
According to the NSBA, their most recent research revealed ongoing struggles for small business owners in the wake of the financial crisis. “Despite significant improvements in economic outlook, more small business owners report a lack of finance is hindering their ability to finance increased sales or increase inventory to meet demand,” said NSBA president and CEO Todd McCracken, who added that a partnership with Funding Circle will aim to ease some of these financial burdens.
Through the partnership, companies will be able to apply for up to $500,000 and will be able to access cash as soon as two weeks after they apply.
Funding Circle, based in the U.K., recently revealed a new SME-financing fund spearheaded by DST Global and other investors. Just weeks prior, the company announced an even larger fund, valued at about $420 million, led by Victory Park Capital. The funds, the company said, would be used for SME lending over the next three years.