Launched in 2010, Funding Circle allows people and organisations to lend to small businesses.
Funding Circle says by bringing together risk management and cutting edge technology, investors have earned an average 6.5% per year and £116 million of net interest over the last seven years.
The news puts Funding Circle in a position to be able to launch an Innovative Finance ISA, subject to approval by HMRC.
James Meekings, UK Managing Director and co-founder, said: “Our vision is to support thousands of people across the UK to earn stable, industry leading returns by lending directly to small businesses. With more than 60,000 investors now regularly lending through Funding Circle, we are on track to becoming a mainstream investment choice for investors up and down the country.”
Funding Circle facilitates lending to small businesses from a wide range of investors including 60,000 individuals, local authorities, the UK government-owned British Business Bank, the European Investment Bank and financial institutions such as pension funds. Investors have now lent more than £2.3 billion to over 24,000 businesses.
