Funding Circle swings into profit in “transformative year”
Funding Circle swung into a profit of £3.4m in 2024, while revenues grew by 23 per cent to £160m, in a “transformative year” for the alternative business lender.
The return to profitability follows a pre-tax loss of £9.9m in 2023.
The London-listed firm offloaded its loss-making US business last year and established cost savings that are expected to amount to £15m in 2025, in order to shore up its balance sheet and focus on its core domestic market.
Its results for the 12 months to 31 December 2024 showed that it has expanded its UK Term Loan business, with originations up by a third to £1,407m.
Its ‘FlexiPay’ product – a business-to-business buy-now-pay-later offering – saw its transactions more than double to £492m.
“2024 was a transformative year for Funding Circle,” said chief executive Lisa Jacobs (pictured).
Read more: Funding Circle: 77pc of SMEs expect to need additional funding
“We successfully executed our plan to build a simpler, leaner, and more profitable business while making strong progress in expanding our Term Loans and FlexiPay offerings.
“Our commitment to product expansion, powered by our leading data and technology capabilities, has strengthened our role in supporting small businesses. The launch of our cashback credit card in the second half of the year enhances our offering, enabling businesses not only to borrow and pay later but also to spend with Funding Circle.
“With strong foundations in place, we are confident in our strategy and the opportunities ahead. We remain on track to achieve our medium-term target of over £200m in revenue, with profit-before-tax margins exceeding 15 per cent.”
Read more: Atom bank to lend further £150m via Funding Circle
