Folk2Folk reflects on “anti-establishment” start on 10 year anniversary
Folk2Folk’s co-founder Louis Mathers (pictured) has reflected on the peer-to-peer lender’s “anti-establishment” origins, to mark the platform’s tenth anniversary.
Founded in 2013, the platform was created in response to the global financial crisis, when funding for businesses was drying up and savers were receiving record low levels of interest.
Folk2Folk was founded to provide these borrowers and savers with an alternative to banks and other mainstream lenders. It has gone on to become the largest P2P lending platform in the UK, with more than £653m lent to date.
“There was definitely an anti-establishment element to why Folk2Folk was started,” said Mathers.
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“We wanted to demonstrate that we could provide funding, and investment opportunities, better than the banks.
“There are invisible barriers to finance for rural small businesses and in effect, they are discriminated against compared to their urban counterparts. We wanted to level the playing field for these businesses and our answer was to organise the funding ourselves.”
Within its first year of business, Folk2Folk facilitated £22m in loans, and by early 2015 almost £50m of funding had been invested in businesses within Cornwall and Devon.
Today, the company has expanded to provide lending solutions to businesses across the UK. All loans are secured by property to give investors an extra layer of security.
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“We’ve always operated on the basis of fair exchange,” Mathers said. “Working to balance the funding needs of borrowers and the risk and reward expectations of investors.”
He added that Folk2Folk’s success is largely down to its commitment to high quality customer service, while maintaining its focus on funding businesses in under-served areas.
Furthermore, investors have experienced no losses to date, and are earning in excess of £1m per month.
“Growing a business within a new industry during uncertain times was challenging. But looking back, it’s empowering to see how Folk2Folk stayed the course, achieving market-leading success and profitability in an industry that has seen significant attrition over the years,” Mathers said.
“I am extremely proud of what we have achieved over the past 10 years. I am grateful to those who believed in the Folk2Folk vision from the start and to our investors, borrowers and partners.
“By pulling together, we have created a shining example of how sharing capital resources can make a meaningful difference in people’s lives and we look forward to continuing to make a positive impact over the next decade and beyond.”
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