News Release - FOLK2FOLK: The Local Lending Movement & FOLKONOMICS

Submitted by Mat Gazeley on

FOLK2FOLK, the award winning, Peer-to-Peer lending platform for rural and local business, today announces the official launch of The Local Lending Movement as part of its mission to help build and sustain socially and financially successful rural communities across the UK; something the company believes essential to Britain’s pre-and post-Brexit success.

The Local Lending Movement will manifest itself within FOLK2FOLK’s branding and through its behaviour and activity across the platform’s footprint, where it will seek to establish and build local networks focused on accelerating the delivery of its purpose.

Giles Cross (CEO: FOLK2FOLK) on The Local Lending Movement: The Local Lending Movement isn’t just about FOLK2FOLK. We’ve always talked about creating our national community of Lenders and Borrowers to dynamise the rural economy, but this goes way beyond that. This is about creating ecosystems on a local level that facilitate rural business growth on the ground. It involves the participation and support, not only of our Lenders and Borrowers, but also other interested parties: our legal and accountancy partners, local authorities, MPs, Chambers of Commerce, Local Enterprise Partnerships, surveyors and land agents, local cooperatives, leisure and tourism platforms, interest groups, community associations, charities, business groups and banks – with whom we have an increasing symbiotic relationship.

We hope that by engaging all parties we will collectively help facilitate the long-term prosperity of our rural and local communities. The Local Lending Movement isn’t just about us. It’s about all of us. It’s local, focused, social activism for positive outcomes. We like that.”

FOLK2FOLK believes that simple and efficient access to finance is a major factor in enabling business success. Since its inception in 2013, the company has helped hundreds of rural and local businesses with appropriate security to grow, develop and diversify by introducing local Lenders looking for attractive interest rates: creating local jobs, increasing tourism, employing local contractors and crucially incorporating the services of local professionals. By lending locally through FOLK2FOLK’s secured loans, FOLK2FOLK Lenders are providing a vital financial lifeline to rural and local UK businesses requiring their help.

The Local Lending Movement will be built around local Chapters, the focus of which will be FOLK2FOLK’s high street branches. A launch of local chapters will occur in due course and further branch openings are planned for 2018.

Powering The Local Lending Movement is what FOLK2FOLK describe as “FOLKONOMICS™” -  An economic model showing positive results across the company’s footprint.

Giles Cross (CEO: FOLK2FOLK) on FOLKONOMICS: “In recent months and years we have repeatedly been told that trickle-down economics doesn’t work; that those ordinary, everyday people who were supposed to benefit from the financial interaction of the wealthy have lost out and been left behind. And that may be the case on the macro level, where the institutions traditionally required to facilitate the easy flow of capital are no longing playing and behaving as before.

However, we see it working perfectly on the local, micro level, where the transactions between our Borrowers and Lenders have an impact that is felt far beyond their Peer-to-Peer relationship on our platform. By accessing the finance for growth, development and diversification, our Borrowers are benefitting their local economy and community: they are creating and sustaining jobs, they are retaining talent in non-urban areas, and stemming its tide to the cities.

The more this happens, the greater the impact: Vibrant rural and local economies attract people into those areas, new homes are built, house prices are stabilised, other local businesses benefit as a result and from being part of the inevitable supply chain; the demand for better communication and connectivity increases, local bus routes retain their relevance, local schools and services are maintained and issues of social deprivation are better tackled.

On the other side of the equation, our Lenders are earning 6.5% p.a interest on the capital they lend, often adding to their retirement income, thereby increasing their spend into the economy.

We call this FOLKONOMICS™. It’s local people making an impact on their local economy and we think it’s one answer to securing long-term economic prosperity for rural Britain.”

FOLKONOMICS™ disrupts the traditional lending model as it removes the need for institutions to fund and facilitate the financing of business loans. In many cases, FOLK2FOLK has been able to assist businesses in sectors where traditional institutions are sometimes unable to lend.



Formed in 2013, FOLK2FOLK exists to help create and sustain financially and socially successful local communities, empowering local businesses requiring debt finance by matching them directly with investors through its Peer-to-Peer lending platform. FOLK2FOLK enables lenders to participate in supporting local UK businesses to grow and thrive driving ­­positive impacts in local communities, creating job opportunities and contributing to the UK economy. 

FOLK2FOLK Lenders have funded loans over £190m to UK business since 2013.

FOLK2FOLK Lenders receive 6.5% interest p.a. on their FOLK2FOLK loans (The sum paid by FOLK2FOLK Borrowers). FOLK2FOLK is a business built on the value of “fair exchange”, with transparent charging and no difference between the rate a Borrower pays and the Lender receives on interest payments.

FOLK2FOLK launched its Innovative Finance ISA in 2017. This product now accepts transfers from other providers.

FOLK2FOLK uses technology not as an opportunity to dilute or remove human relationships, but to enhance them and bring them together. It remains one of the only companies of its kind to maintain and favour the existence of a local branch network. FOLK2FOLK should therefore not be described as a B2B or B2C business, but as H2H (Human2Human). FOLK2FOLK is FinTech with a face!

FOLK2FOLK now has a local presence in Cheshire, Cornwall, Cumbria, Devon, Dorset, East Anglia, Somerset, Thames Valley, Three Counties, Worcestershire & Yorkshire. Further growth is planned in 2018 and information will be made available in due course.

FOLK2FOLK is an award-winning Peer-to-Peer lending platform, having been awarded “Altfi Best Lending Platform for Small Business 2015” and “AltFi Up and Coming Business Platform of the Year 2016”. In November 2017, FOLK2FOLK was awarded “Small Business of the Year 2017” at the Western Morning News business awards.

FOLK2FOLK became authorised and regulated by the FCA in 2016 and became a member of the P2PFA in 2017.

Additional fees for Lenders are charged for selling loans before their term via FOLK2FOLK MarketPlace.

Minimum investment in a FOLK2FOLK loan is £20,000. There is no maximum limit for investment. All loans secured against UK property or land. Peer-to-Peer lending is not a bank/deposit savings product and investors’ capital is at risk. Peer-to-Peer lending is not covered by the FSCS.

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