Funding Circle and Atom Bank agree new £150m lending partnership – AltFi

Funding Circle and Atom Financial institution have entered a brand new lending partnership to supply as much as £150m in funding to small companies.

App-based financial institution Atom has had a long-standing relationship with the SME lending platform as a returning investor, having beforehand lent round £650m by Funding Circle.

The brand new partnership will assist small companies by the newest government-backed Get better Mortgage Scheme (RLS) supplied by Funding Circle, aiming to assist enhance entry to finance for SMEs.

“Entry to finance stays essential for small companies, so we’re delighted to as soon as once more be partnering with Atom financial institution to assist extra SMEs get the funding they should win,” Funding Circle CEO Lisa Jacobs stated.

“The Restoration Mortgage Scheme is a vital approach for us to have the ability to say sure to extra companies in keeping with our medium-term plan, and we’re persevering with to increase our observe document of delivering strong and engaging mortgage returns for our traders, despite the altering financial surroundings.”

The financial institution will use Funding Circle’s expertise and distribution platform to ship the funds to UK companies and deploy capital.

Chris Storey, Atom’s chief industrial officer, stated the partnership is a “key half” of the financial institution’s dedication to UK enterprise house owners.

“We’ve got an ambition to assist as many SMEs as doable as we scale the financial institution, and persevering with to leverage Funding Circle’s market main tech gives us with a implausible technique to ship on that ambition,” Storey stated.

“We not too long ago introduced our first full 12 months of working revenue, adopted by a profitable capital elevate and securitisation, so Atom is in a very robust place to assist these corporations who could also be struggling to entry finance.”

Atom has been supporting companies by the most recent iteration of the RLS, and can look to assist much more heading into subsequent 12 months, following a £100m capital elevate at the beginning of the month.