Funding Circle US partners with Affinity Plus
Funding Circle US and Minnesota-based credit union Affinity Plus have partnered to provide small businesses with access to credit.
Affinity Plus is the first credit union investor in loans originated by the alternative business lender. The partnership enables the credit union to purchase loans originated through Funding Circle’s world-class machine learning and technology platform.
The platform offers investors an efficient and cost-effective mechanism to lend directly to small businesses, and in turn provides business owners with a streamlined application process and timeline.
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In addition to its members in Minnesota, Affinity Plus will now be able to offer loans to businesses across the US.
“Our work with Affinity Plus underscores our commitment to building a more inclusive financial environment for small businesses to grow and thrive with a diverse array of institutions,” said Angus Sanders, chief revenue officer at Funding Circle US.
“Affinity Plus is committed to financial inclusion for its members and their communities – by making available affordable products and a deeper connection that helps take the stress out of finances,” added Matt Fuller, vice president of finance and Risk management at Affinity Plus Federal Credit Union.
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Affinity Plus joins a wide range of institutions leveraging Funding Circle’s platform, including regional banks, technology companies, service-to-member institutions and community development financial institutions (CDFIs), marking another step forward in a growing collaboration between Funding Circle and the banking community.
The announcement follows a recent Federal Reserve study showing that Funding Circle has been able to expand credit access to underserved small business owners who are not likely to receive funding from traditional lenders, noting it has done so at a lower cost to borrowers and made it possible for those banks to reach new customers during the pandemic.
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Funding Circle’s UK business exited the peer-to-peer lending space earlier this year.