Folk2Folk secures £7m funding line from British Business Investments

Folk2Folk has secured a £7m commitment from British Business Investments (BBI).

The funding line from the commercial arm of state-backed lender the British Business Bank will be used to finance loans on the peer-to-peer business lending platform.

Roy Warren (pictured), managing director of Folk2Folk, said the commitment would help boost support for small- and medium-sized enterprises (SMEs).

Read more: Institutional investing heralded as positive for P2P

“We are rapidly approaching half a billion in lending and the addition of British Business Investments as an institutional investor alongside our existing investor base, expands our funding lines and bolsters our position on the financial frontline of support for regional SMEs,” he said.

“Folk2Folk takes a human approach to lending and reviews every case on its own merits.

“By taking a holistic approach, we’re able to see the bigger picture, and will also consider projection-led proposals.”

The British Business Bank has previously channelled funds through P2P lenders including Assetz Capital and Funding Circle.

It also accredited Folk2Folk as a coronavirus business interruption scheme lender.

Read more: Folk2Folk on track to double profits in 2021

“In its recently published Regions and Nations Tracker report, the British Business Bank highlighted the funding issues for regional and rural smaller businesses,” Judith Hartley, chief executive BBI, said.

“This commitment will help these types of businesses, throughout the UK, to access the finance they need to grow and prosper.”