The leading small business lender has acquired a startup platform in order to speed up loan turnaround times.
Peer-to-peer lending giant Funding Circle has acquired LeapPay – a fledgling supply chain finance platform. The platform is primarily interested in taking advantage of LeapPay’s technology. Funding Circle will look to make use of LeapPay’s highly advanced underwriting technology – which will help it to vet and approve businesses and potential lenders more quickly, as well as the operating technology – which can be used to extend loans with invoices as collateral. The technology can be integrated with products such as Quickbooks, Freshbooks and Xero.
Funding Circle hopes to further distinguish itself from fellow peer-to-peer lenders through LeapPay’s innovative methods. At its core this move will allow the platform to move towards more varied loans, and to close those loans much more quickly.
“We see many borrowers who are looking for short-term loans with different structures.”
“We intend to offer shorter term and longer term and secured and unsecured loans and more. That will see Funding Circle, which typically sees businesses take 2.5-year repayment options, get both shorter and longer terms. There are other areas, too.”
“In the UK, Funding Circle has a commercial property loans business, but it doesn’t have this in the U.S. We think there is an opportunity there.”