Atom bank to lend further £150m via Funding Circle
Atom bank has agreed to lend a further £150m through Funding Circle to UK small businesses.
This is the third partnership between the challenger bank and the alternative lender, bringing Atom bank’s total lending with Funding Circle to £800m.
The funds will be lent through the latest iteration of the government-backed recovery loan scheme (RLS) offered by Funding Circle.
Read more: Who is offering the RLS?
“Access to finance remains crucial for small businesses, so we’re delighted to once again be partnering with Atom bank to help more SMEs get the funding they need to win,” said Lisa Jacobs (pictured), chief executive at Funding Circle.
“The RLS is an important way for us to be able to say yes to more businesses in line with our medium-term plan, and we’re continuing to extend our track record of delivering robust and attractive loan returns for our investors, in spite of the changing economic environment.”
The announcement follows Atom bank’s £100m equity raise at the start of this month from long-term shareholders, to accelerate its lending.
“This partnership forms a key part of our ongoing commitment to UK business owners. We have an ambition to support as many SMEs as possible as we scale the bank, and continuing to leverage Funding Circle’s market leading tech provides us with a fantastic way to deliver on that ambition,” said Chris Storey, chief commercial officer at Atom bank.
Read more: Funding Circle requests personal guarantees on RLS loans
“We recently announced our first full year of operating profit, followed by a successful capital raise and securitisation, so Atom is in a particularly strong position to help those firms who may be struggling to access finance. We have been supporting businesses through the latest iteration of the RLS, so we look forward to now helping even more UK SMEs invest and grow as we move into the new year.”
Atom bank is among a range of investors that have used Funding Circle’s platform including banks, asset management companies, insurance companies, government-backed entities, and funds.