Folk2Folk passes £700m lending milestone

Peer-to-peer lending platform Folk2Folk has surpassed the £700m lending milestone since its launch in 2013.

The group said this “cements its position” as the largest P2P lending platform to small businesses in the UK.

Folk2Folk’s minimum investment limit is £20,000 and the minimum borrowing amount on the platform is £100,000. All the loans on the platform are secured against property or land with a maximum loan-to-value of around 60 per cent. Returns on the platform currently start from 8.75 per cent per annum.

Read more: Folk2Folk IFISA to remain P2P focused

“This achievement is testament to the trust and support of our borrowers and investors, and reinforces our mission to help create prosperity across the UK. We remain committed to providing fast, flexible, and friendly lending solutions that enable local businesses to thrive,” said Roy Warren, managing director of Folk2Folk.

Over the last 12 months, the platform has facilitated funding for businesses including a startup making custom handmade cricket bats; a community interest company and a multi-million pound renewable energy project.

During this period, the group paid out £15.78 million in interest to investors.

In its latest results, Folk2Folk reported a pre-tax profit of £1.28m, which was its fifth consecutive annual profit to date. This compares with a profit of £1.37m in the previous 12 month period.

Read more: Folk2Folk reflects on “anti-establishment” start on 10 year anniversary