Funding Circle and Santander set up partnership
Funding Circle and Santander have launched a partnership to give small UK businesses better access to finance, writes Ryan Bembridge.
18 June, 2014
Santander will refer small business customers via its website and letters to Funding Circle when the online marketplace is better placed to help.
Customers will also be signposted from Funding Circle to Santander when they require day-to-day relationship banking support or other services such as international banking expertise, cash management and support for growth.
Funding Circle has helped more than 5,000 businesses borrow £290m, while with its credit assessment process investors have earned an average 6.1% after fees and losses.
Ana Botin, chief executive officer of Santander UK, said: “SMEs need access to multiple sources of finance, and Santander’s partnership with Funding Circle is a good example of how traditional and alternative finance can work together to help the nation’s SMEs prosper.
“Peer-to-peer financing is also a useful way to introduce people to the concept of investing in entrepreneurs; an important element in a healthy enterprise economy.”
Around 250,000 businesses a year could benefit from being referred to alternative finance providers.