By John Reynolds on 11th November 2019
Funding Circle is referring potential customers to traditional banks and fintech rivals.
Funding Circle is piloting a scheme that involves it referring borrowers wanting large, unsecured loans away from its peer-to-peer lending platform to rivals.
Instead of turning down the customers, the peer-to-peer lender is advising borrowers wanting unsecured loans above £500,000 to sign up with its rivals, which it receives a referral fee for.
Funding Circle has suffered a number of setbacks since its listing at 440p a share last year.
In August this year, Funding Circle reported a pre-tax loss of £31m over the last six months, compared to a £27m loss the year previous.
But last month, its loans under management soared 31 percent to £3.7bn, sending its share price up.