FOLK2FOLK, the multi-award-winning Peer-to-Peer lending platform for local, rural and SME businesses, has now surpassed £250 million in lending providing a valuable source of capital to hundreds of businesses across the UK.
FOLK2FOLK is the third largest peer-to-peer lender to business in the UK in terms of money lent (source: AltFi UK Volume Index). By facilitating the lending of £250 million, the company has enabled small businesses across a variety of sectors, including agriculture, alternative energy, leisure and tourism, hospitality, property development, to grow, diversify or refinance.
FOLK2FOLK spearheads The Local Lending Movement through its unique model of match-making local lenders with local businesses. This local lending model often creates additional value, beyond just a straightforward business loan, through the creation of local jobs, retention of local talent and other flow on positive impacts to the local economy. FOLK2FOLK coined the term FOLKONOMICS to describe this trickle-down effect of benefits.
The lending milestone has been reached thanks to a growing community of individual Lenders who have placed £20,000 or above on FOLK2FOLK’s platform. The average lent per Lender now exceeds £275,000 and many are taking advantage of FOLK2FOLK’s Innovative Finance ISA to benefit further from the tax wrapper. Lenders receive 6.5% p.a interest which is paid monthly, contributing to their financial goals, whether it be supplementary income for retirement or funding a life event like a once in a lifetime holiday.
Giles Cross (FOLK2FOLK CEO): “Reaching the £250 million milestone highlights the important role FOLK2FOLK plays in providing a lifeline to many SME businesses. Helping so many companies across local communities have access to much needed capital to secure their growth, development and diversification is at the heart of what we do. The Local Lending Movement can transform local communities by creating new jobs and revenue opportunities for rural and local UK businesses. Coupled with this, our inflation-beating interest rate is helping to bolster our Lenders’ savings pots by providing an additional source of income.”
FOLK2FOLK secures all loans against UK property and reports zero customer losses on the platform since inception in 2013. As with all investments capital is at risk. Peer-to-peer lending is not covered by the FSCS.