Funding Circle has revealed that its investors have now lent more than £100 million of property finance loans.
The marketplace for small businesses and small developers was launched in April 2014 to meet the increasing demand from property professionals facing difficulty accessing the finance from traditional lenders. The £100 million lent so far has helped small developers build over 600 new homes across the country.
In June this year, the company launched a new short term bridging product in response to an increasing number of enquiries relating to shorter term loans, all of which are available via intermediary channels.
Businesses can now choose from a range of commercial property and development finance loans on the marketplace, including commercial mortgages, development and investment loans.
The business development team at Funding Circle works with introducers to find the right product for their client. The team helps them sign up for an account on the Funding Circle website and then arranges a call with them to find out more about the types of businesses they work with. Introducers can then start using the system to help their business clients get funded through the platform.
Parik Chandra, property finance specialist at Funding Circle, said: “Funding Circle’s fast turnaround times for assessing applications set us apart from other lenders and is something that introducers really value. We offer a professional service, with the same rigorous credit assessment as traditional lenders. For commercial property and development finance loans, we offer a four-to-six week turnaround and do all of our due diligence within that period, including credit assessment and independent valuation reports. Bridging loans can in many cases be turned around quicker.
“More than 85% of small property developers are coming back to us for subsequent schemes. Many of them are disillusioned with the banks, who often aren’t in a position to help them.”