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Funding Circle lends £1m is Ten Weeks

  • Thread starter Scottish Business Owner
  • Start date
Scottish Business Owner

Scottish Business Owner

New Member
I think a few people have mentioned Funding Circle in other threads but I picked up on the article below about just how successful it's been in a relatively short period of time.

People Lend 1m Pounds Directly to Small Businesses to Defy Banks in... -- LEEDS, England, Nov. 4, 2010 /PRNewswire/ --

The concept is great and it seems a win-win for everyone concerned. The £1m is probably a drop in the ocean compared to what businesses need to borrow but it's a start and hopefully a catalyst for others to get in on the act.
 
S

shredder

New Member
I've mentioned it in a few posts previously and think it's a real innovation in funding for small and very small businesses and a real alternative to bank funding. I love the concept and am very tempted to lend through this channel, best rates for short term cash investment is way below 8 %. Yes extra risk but you can choose who to lend to and I believe there are a lot of genuine sme's who will be good credit risks.

I think it's much better than selling equity to raise cash given traditional bank funding is no more for very small sme's.
 
stugster

stugster

New Member
That is fantastic.

As far as I'm concerned, the less we use the banks in this country the better. I'm yet to find anything really good to say about them.

This concept is absolutely fantastic for any small business. My worry is for how long will this concept go before it too either turns into a bank or is bought over by one?
 
D

DickW

New Member
Is there an equivalent in Scotland? I've not heard of one.
 
Frugaldom

Frugaldom

New Member
Funding Circle has been getting a huge amount of publicity, recently, but I haven't met anyone who has set up an account to try lending. I'm not too sure how their admin charges work out - am I right in thinking that it's a monthly fee?
 
stugster

stugster

New Member
Surely when it comes down to it, there's ultimately still a bank involved in holding the funds somewhere?
 
S

shredder

New Member
I guess the company must have bank accounts in the normal way to hold cash and make and receive payments but I don't think the banks are involved in any lending decisions or get any commission fees or interest as result of loans which are made.
 
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