Folk2Folk strikes deal with German debt marketplace platform
The peer to peer lender is hoping the deal will help it find new institutional investors to fund government-backed loans.
Folk2Folk has inked a deal with a German company which connects loan originators with institutional investors as the Cornwall-based peer to peer lender looks to expand its investor base.
Folk2Folk has teamed up with Berlin-based CrossLend, a debt marketplace platform, which connects companies like Folk2Folk with institutional investors. CrossLend provides originators and investors with data management, analytics and reporting tools.
The peer to peer lender, which has recently been accredited for the Coronavirus Business Interruption Loan Scheme, will hope the deal will help it find new institutional lenders for the government-backed loans scheme helping those companies hit by coronavirus.
Funding government-backed loans by non-bank lenders has proved problematic, particularly as non-bank lenders have been prevented from accessing cheap finance from the Bank of England.
Earlier this month, thousands of small businesses hoping to secure a government-backed Bounce Back Loan had their hopes quashed after non-bank lender Tide said it could not secure the funds.
Folk2Folk, whose loans are funded by retail and institutional investors, will also hope the deal will help widen its investor base for lending to SMEs.
Roy Warren, managing director of Fok2Folk, said: “Our ambition is to have a rich amalgam of investor streams with a healthy mix of both retail and institutions. We’ve been steadily building our institutional relationships and our new partnership with CrossLend will expedite this further.”
“We’re in the match-making business, so it made sense to use the same marketplace approach to introduce us to new institutional investors.”
Oliver Schimek, CEO, founder, CrossLend, said: “We’re excited to partner with Folk2Folk and see our collaboration as a real contribution to expanding the funding options of local UK SMEs, both in post-Covid-19 economic recovery and longer-term.”