Peer-to-business lender Funding Circle has announced that Victory Park Capital, an asset management firm based in the US will finance £272 million in loans to small businesses in the UK and US over the next three years.
This new agreement will extend the current deal that both parties have and will allow Funding Circle to provide a much needed further injection of funding into the small business sector.
Since launching in 2010, Funding Circle has lent to over 8,000 small businesses and is currently lending £40 million a month in the UK. This figure is expected to double over the next 12 months thanks to this new deal.
Victory Park Capital was an early institutional partner to Funding Circle in the US and the asset management company has made more than US$
Victory Park Capital, a Chicago-based asset management firm, is set to finance up to $420m (£272m) in loans to thousands of small businesses across both the UK and US over the next three years through peer-to-peer lender Funding Circle.
The agreement will allow Funding Circle to provide a much needed further injection of funding into the small business sector and reflects the strong growth of the lender over the past 12 months.
Funding Circle, which has now facilitated more than $850m (£551m) in loans to 8,000 small businesses globally, currently lends about £40m a month in Britain which is expected to double over the next 12 months as a result of the new partnership.
Samir Desai, chief executive and co-founder of Funding Circle, said the agreement is a "significant step" on the lender's journey to creating the global infrastructure "where any investor, big or small, can lend to creditworthy small businesses looking to grow".
Gordon Watson, principal of Victory Park Capital, added: "Funding Circle has experienced tremendous growth over the past year and we are pleased to expand our on-going partnership to both sides of the Atlantic.
"With this additional lending facility, Funding Circle will be well-positioned to continue to disrupt the traditional banking model through 2015 and beyond."
Victory Park Capital has been actively involved in the marketplace lending sector since 2010 and has made more than $2.2bn (£1.4bn) of investments and commitments across a number of financial technology platforms, multiple geographies (US, UK and Europe), products and structures.