Small business loan platform Funding Circle and app-based bank Atom have announced a lending partnership to provide around £300 million of new funding to UK small businesses, bringing Atom’s total lending with Funding Circle to £650 million.
Atom will use Funding Circle’s technology and distribution platform to deploy new funding to around 4,000 businesses, based on an average loan size of £80,000 which would allow 3,750 SMEs to access finance.
The lending partnership announcement comes a day after Funding Circle said it has become the first lending platform to be accredited under the British Business Bank’s Recovery Loan Scheme (RLS).
It means that businesses can now apply for a loan through Funding Circle’s website, with RLS loans to be offered alongside its existing commercial loan product.
Funding Circle said the lending partnership with Atom will support SMEs through its RLS product and existing loan product.
Atom will lend through the platform alongside other investors, including banks, asset management companies, insurance companies, government-backed entities, individuals and funds.
Lisa Jacobs, Europe managing director of Funding Circle, said: “We are excited that Atom bank has strengthened its commitment to supporting small businesses through our technology platform.
“Alongside a wide range of investors, it’s great to see Funding Circle’s machine learning and distribution capabilities being leveraged as a key solution towards increasing the flow of funding to the real economy, powering the economic recovery.”
Funding Circle was the third largest provider of finance under the Coronavirus Business Interruption Loan Scheme (CBILS).
Edward Twiddy, chief customer officer at Atom bank, added: “We’re excited to be partnering with Funding Circle, leveraging their market-leading tech to continue our support for British businesses.
“By the turn of this year we will have provided over £1 billion of lending to UK SMEs alongside what is already £3bn of mortgage lending, making good on our promise to be the bank for those wanting to grow their own business and own their own home.”