Funding Circle tops £100m in a month

By Ryan Weeks on Wednesday 30 November 2016

Alternative Lending

Leading SME lending platform Funding Circle notches monthly and daily origination records, becomes first UK platform to top £100m in a month. 

Funding Circle, a leading marketplace lender for small businesses, has recorded a UK industry first by topping £100m in loan originations in a single month. As of yesterday, the platform was sitting on £107m in loan originations for the month.

In addition to the monthly mark, Funding Circle also notched a daily lending record yesterday, with over £9.3m disbursed.

After a temporary slowdown in volumes post-Brexit, the UK marketplace lenders hit their stride again in September, with Funding Circle, RateSetter and Zopa each posting monthly origination records. Funding Circle led the pack with what was then a UK industry-wide record at £75.2m. Funding Circle then smashed its own monthly record in October, with £95m lent.

Now the record falls again, with the platform likely to finish the month between £110m and £115m in origination.

All of this happens as volumes in the US continue to fall away. The latest data from Orchard, released earlier this week, revealed that originations in the US unsecured consumer lending sector have effectively halved since their peak in the fourth quarter of 2014, from $3.8bn to $1.8bn in Q3 2016.

October was a record month in terms of origination for the UK marketplace lending sector as a whole. November will not be, with both Zopa and RateSetter likely to fall shy of their respective records. However, we are frequently told by the platforms that they each experience the effects of seasonality differently. Consumer lender Zopa, for example, typically sees strong origination flows in January, as people look to get their personal finances in order.

The chart below highlights the strong performance of the UK’s marketplace lending platforms in recent months, in which a series of records haven fallen.

The following charts – again sourced from AltFi Data Analytics – offer more colour on the breakdown of Funding Circle’s record month.

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