Funding Circle strikes new £700m lending partner

Funding Circle has struck a new lending deal worth £700m with US-based Bayview Asset Management.

The new cash will be lent through Funding Circle's platform to UK small businesses over an 18-month period and follows a £1bn deal with another US-based asset manager earlier this year.

The listed SME lender says £2.4bn of funding has now been committed by investors using Funding Circle since May. 

Globally, since being founded in 2010, Funding Circle has arranged c.£14.5bn in loans to c.130,000 businesses.

Bayview, which is providing the capital through its managed funds business, is one of several asset managers including Waterfall AM among the ranks of Funding Circle's loan investors. Others include banks insurance companies, government-backed entities, individuals and funds.

“Small businesses continue to face a wide range of opportunities and challenges; access to finance remains crucial to meeting these. We’re delighted that Bayview Asset Management is joining the wide range of investors using our technology and distribution platform, ensuring the UK’s entrepreneurs can continue to invest, grow, and support local jobs,” said Funding Circle’s CEO Lisa Jacobs.

“Bayview has been supporting alternative finance providers in the U.S. and Europe to access efficient funding and provide innovative financing solutions to businesses and consumers. We look forward to working with Funding Circle to empower SMEs across the UK, said Zhu Gong, European structured credit at Bayview Asset Management.