2 months ago
In a significant move for the UK's SMEs, lending platform Funding Circle and Atom Bank have joined forces. This collaboration, the third between the two entities, is set to provide up to £150 million of funding to support small businesses.
This investment comes at a critical time, aligning with the latest iteration of the Government-backed Recovery Loan Scheme (RLS), which aims to enhance access to business finance. In this article, we break down the details of this partnership and what it means for SMEs.
Atom Bank, a returning investor after committing approximately £800 million, is leveraging Funding Circle's technology and distribution platform to reach more British businesses. This collaboration is designed to support SMEs and fuel the growth of the economy.
The new lending partnership is set to play a pivotal role in supporting SMEs through the British Business Bank’s Recovery Loan Scheme. The RLS, facilitated by Funding Circle, seeks to bridge the financial gap for small businesses, especially in the aftermath of recent economic challenges.
Funding Circle CEO Lisa Jacobs said: “Access to finance remains crucial for small businesses, so we’re delighted to once again be partnering with Atom Bank to help more SMEs get the funding they need to win. The Recovery Loan Scheme is an important way for us to be able to say yes to more businesses in line with our medium-term plan, and we’re continuing to extend our track record of delivering robust and attractive loan returns for our investors, in spite of the changing economic environment.”
Funding Circle’s Dipesh Mehta said: “We’re delighted to strengthen our long-standing relationship with Atom Bank via this new lending partnership. We aim to build strong, long-lasting partnerships with our investors and repeat transactions are a testament to that. The partnership will help support more small businesses to access finance, and further demonstrates our track record at delivering robust and attractive investor returns in changing economic conditions.”
In an era when efficiency means a lot to businesses, Funding Circle has introduced a streamlined lending process to reduce the time it takes for SMEs to secure funds. Atom Bank, known for its app-based banking model, aligns with this ethos to provide a better customer experience.
This collaboration, rooted in operational efficiency and a commitment to supporting SMEs, represents a notable development in the financial landscape and a sensible solution to time-sensitive financial requirements.
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