By Daniel Lanyon on Thursday 5 November 2020
The new cash will be channelled to UK SMEs through Funding Circle’s UK SME Direct Lending Fund.
The UK SME Direct Lending Fund, which launched and began lending in July 2019, gives institutional investors, including pension funds, insurance companies and local authorities access to SME loans.
Following Funding Circle’s accreditation to lend under the Coronavirus Business Interruption Loan Scheme (CBILS) in April 2020, the Fund was subsequently given the approval to expand its investment strategy to include investing in CBILS loans.
British Business Investments has been one of the most prominent investors in Funding Circle's loans, which it has done over the past seven years.
Sachin Patel, Chief Capital Officer of Funding Circle said: “By investing in our fund, investors can earn attractive risk-adjusted returns whilst contributing to economic growth and job creation. This latest support from British Business Investments demonstrates the vital role fintechs play in facilitating loans to small businesses whatever the weather. We look forward to welcoming more investors in the near future.”
Judith Hartley, CEO, British Business Investments said: “One of the objectives of British Business Investments is to support the development of diverse finance markets. We have supported the growth of fintech and marketplace lenders since its early stages, and lenders like Funding Circle help provide competition and choice to smaller businesses. By making this commitment, more smaller businesses across the UK can get the finance they need to fulfil their growth potential.”