Funding Circle co-founder and CEO Samir Desai CBE
Funding Circle share price soars amid market panic
The small business lender is on the up despite the stock market tumbling.
SME lending platform Funding Circle saw a dramatic increase in its share price last week, rising nearly 100 per cent in just three trading sessions.
The company has seen its shares steadily fall since its IPO back in September 2018 and was ejected from the FTSE 250 in 2019 as a result, has now seen its shares double in value.
Shares for the company were originally listed on the London Stock Exchange for nearly £4.40 per share.
On Wednesday last week, the cost of shares for the London-based small business lender reached an all-time low of just £0.25p per share.
Despite the current market turmoil shares in Funding Circle have seen a rapid increase in just the last five days alone.
Funding Circle shares are now worth nearly £0.51p, over double what they were worth just last week.
The increase in share price could be down to speculation that Funding Circle could benefit from the £330bn economic stimulus package provided by the Government to help keep small businesses afloat during the current market downturn as well as a potential increase in demand for SME loans broadly.
Funding Circle had a rocky 2019 as it saw higher losses and tighter lending rules to combat its share prices nosediving.
Despite this, a record £1.6bn was lent to small businesses through its platform and roughly 80,000 small businesses accessed funding through the platform by the end of 2019.
AltFi approached Funding Circle for comment but it is yet to respond.