Funding Circle sees credit extended rise by 21pc to £1.1bn in H1
Funding Circle has posted a 21 per cent year-on-year increase in credit extended during the first half of 2025, to £1.1bn.
The finance platform aimed at small and medium-sized enterprises (SMEs) also said balances under management stood at £2.8bn with credit performance “in line with management expectations”, according to its trading update for the six months to 30 June.
The firm’s term loans business was also up on the first half of 2024, with originations increasing from £692m to £736m and improved profit margins, which it said were “due to operating leverage and the proactive cost actions we took in 2024.”
Looking ahead, the platform said it was on track to achieve its medium-term guidance of more than £200m in revenue and more than £30m in pre-tax profit for the full year 2026.
Read more: Funding Circle anticipates profitable full-year results
The firm pointed to “strong growth” in FlexiPay and the Cashback credit card, with credit extended now surpassing £1bn since launch.
FlexiPay is a line of credit that allows SMEs to pay for items, bills or other business costs and spread the cost over a fixed period, typically beween between one and 12 months, according to its website.
The Cashback card offers business customers two per cent cashback for the first six months up to £2,000, plus one per cent uncapped cashback thereafter, subject to terms.
“Building on our successful 2024, we are pleased to report that the group continued to deliver strong revenue and profit margin growth in the first half of 2025,” Funding Circle said.
“This performance is a testament to the strength of our brand, technology and credit decisioning.”
Read more: Funding Circle closes £200m forward flow agreement with Deutsche
In May, Funding Circle announced its third share buyback programme, for up to £25m, which it said is ongoing. Since March 2024, it has bought back 14 per cent of its issued share capital.
“I am very pleased with the momentum we have carried into 2025 following our strong performance last year,” said Lisa Jacobs, chief executive.
“We saw strong revenue growth with improving profit margins in our streamlined business as we continued to invest in new products.
“We remain confident in our ability to achieve our medium-term goals, and support more small businesses across the UK with the funding they need to succeed.”
Read more: Funding Circle receives £230m credit facility from Citi
