Government's Business Bank invests £40m in P2P lending provider Funding Circle
1 min read
26 February 2014
The government's “British Business Bank” has confirmed it will be investing another £40m in P2P loans company Funding Circle in an effort to boost alternative funding options for small and medium businesses.
The funds are expected to underpin up to £450m of lending over the next 18 months, and follow a previous £20m investment in the P2P company.
The business secretary, Vince Cable, said: “Too much business lending is concentrated in the big banks and, if we’re to have a properly functioning business lending market, they need to be challenged by new banks, peer-to-peer lenders and other alternative providers.”
Samir Desai, CEO and co-founder of Funding Circle, said: “The Government has done a great deal to help raise the profile of non-bank lending over the last 12 months and has strongly encouraged greater competition in the market. Peer-to-peer lending has proven to be the preferred way for many businesses to borrow.
“Today’s commitment from the British Business Bank will ensure many more thousand businesses access the finance they need to grow – creating jobs up and down the country”.