Folk2Folk boss warns of “dangerous” City funding
Folk2Folk managing director Roy Warren has reiterated the platform’s commitment to individual investors and warned of the dangers of relying on institutional funding.
The secured business lending platform is now the largest peer-to-peer lender in the UK, with a loan book nearing £600m.
In an exclusive interview with Peer2Peer Finance News, Warren (pictured) said the platform will remain loyal to its existing customer base, despite the challenges of stricter regulation.
Read more: Folk2Folk joins FIBA as a lender partner
“Last month we turned 10 years in existence, we have got to where we have today through our loyal high-net-worth investors, that’s where our loyalty lies,” he said.
“It is easy to throw it away and go to institutional funding. It would be an easy life, especially with increased regulation around retail and fear of further constraints… but why should we deprive high-net-worth individuals of the choice? That’s the key thing.”
Read more: Folk2Folk rejoins NACFB as a patron
Read more: Folk2Folk raises rates as it seeks to attract Assetz Capital investors
Warren added that “running into the arms of an institutional investor is a dangerous place to be in” as you can end up losing control of your business. He revealed that Folk2Folk has had discussions about large institutional funding lines but felt that those companies would end up running the platform.
“We are open and encourage people to come forward, but it is getting the terms right,” he said.
Read the full interview with Warren in this month’s issue of Peer2Peer Finance News.