Funding Circle lifts lid on struggles in UK SME lending

By Owen Sanderson
24 Sep 2020

Funding Circle underlined the strain felt by UK small and medium sized enterprises in its half year results on Thursday, as the marketplace lender swung into a loss caused by heavy writedowns of subordinated portions of its SBOLT securitizations. But the lender also achieved strong volumes in government-guaranteed loans, which it sells off balance sheet to Chenavari Investment Management.

The pandemic came at a particularly tough time for the pioneering marketplace lender, which had grown into one of the UK’s biggest SME loan providers and was rapidly expanding internationally as well.

Last year, it reworked its approach to the securitization market, moving from its former role as ...

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