Peer-to-peer lending firm Funding Circle has opened up its network to allow 3m more businesses to access finance.
The company will allow the UK’s non-limited sole traders and business partnerships to access peer-to-peer business lending, which was previously only available to 1.3m limited companies.
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Businesses looking to borrow from Funding Circle, which has lent over £500m (337m) to more than 2,000 businesses since 2010, will be able to borrow between £25,000 and £1m, subject to the same requirements imposed on limited firms. These include: provision of at least two years’ worth of accounts and trading history; having no county court judgements over £250; and passing Funding Circle’s full credit assessment.
Laura McMullen, Funding Circle’s business development director, said the company’s vision was to help UK businesses "flourish" by accessing the finance they need in the fastest and simplest way" as "millions more well-established firms will be able to tap into the peer-to-peer revolution for the first time."
She added: "Peer-to-peer lending is the most efficient way for businesses to borrow. On average, business owners access the finance they need in a matter of days not months, freeing them up to get on with running their company. Over time we believe borrowing through Funding Circle can account for 10-20% of the small business lending market."
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