Folk2Folk dishes out over £17m to SMEs under lockdown

Cornish peer-to-peer lender Folk2Folk has injected more than £17.3m in loans to SMEs under lockdown.

Folk2Folk, which mainly provides loans to rural businesses, says the largest loan it facilitated was for just over £4m.

The alternative lender has largely provided loans for business growth, property development and farms looking to diversify or refinance existing loans.

Roy Warren, Managing Director of Folk2Folk, said: “Now with lock-down conditions easing we’re ready to help those businesses wanting to invest in their re-emergence. For some everything will have changed, and they may need to invest in new ways of operating, consider a new direction or diversify.

“Some of our customers pivoted their business during lock-down and have since discovered benefits beyond survival. Being forced to consider new ways of working or diversification has resulted in new strings to their business bow and in some instances, a wider customer base,” he added.

All of the loans provided during the coronavirus crisis have been funded entirely by Folk2Folk’s retail investors, with the typical interest rate sitting at 6.5 per cent per annum. 

Just last month it was revealed that the alternative lender had achieved profitability after a series of cost-cutting measures implemented under managing director Warren.

Folk2Folk has applied for accreditation under the government-backed CBILS scheme, but is yet to be approved.