Leading small business lending platform Funding Circle topples UK’s monthly origination record, lends £95m in October.
Funding Circle, the world’s largest marketplace lender for small businesses, has broken its own UK record for monthly origination volume. Funding Circle lent £95,086,880 in October, besting the previous watermark – which was set in September – by approximately £20m.
Funding Circle has now lent a cumulative total of around £1.62bn across 23,719 loans, according to AltFi Data. 1,187 new loans were issued by the platform in October, ranging from £5k to £572k in size.
Origination volumes in the UK’s marketplace lending space were somewhat suppressed during the summer, due to a combination of factors which included fallout from the Lending Club debacle in the US, as well as the impact of Brexit. But the sector rebounded in September, with Zopa, RateSetter and Funding Circle each posting monthly origination records, at £67.8m, £74.3m and £75.2m respectively.
"Over the last 6 years we've consistently seen strong demand from small businesses in the last quarter of the year,” said James Meekings, co-founder and UK managing director of Funding Circle. “We've been working hard to position Funding Circle as the first choice for small businesses and this is evidence of our ambition becoming reality."
Funding Circle announced changes to its gross interest rates yesterday, with rates falling in the platform's A+, A and B risk bands, and rising in its C, D and E bands. Commenting on the changes, a Funding Circle spokesperson said that they were “not related to Brexit”. She said that the adjustments were instead an attempt by the company to provide a better quality of customer service to both sides of the marketplace by leveraging the large amount of data that has been compiled by the platform over the past five or six years of lending.