Under pressure Funding Circle hits record of £3.7bn for loans
Investors in peer-to-peer lender Funding Circle were thrown a rare piece of good news yesterday as the firm said it was on track to meet expectations this year.
The company, which lends to small and medium-sized businesses, said that its loans under management hit a record £3.7bn in the last three months, up by almost a third on the same period last year.
However, the value of the loans it processed over the quarter - originations - fell by 0.5% to £561m.
Funding Circle has faced a turbulent year and shares in the company, which listed for 440p 13 months ago, are now fetching less than 110p - a fall of three-quarters.
Chief executive Samir Desai said: "In the third quarter, loans under management reached £3.7bn and projected returns for 2019 continued to show an improvement over recent years.
"We continue to manage the business prudently, which we are confident is the right course of action for the long-term growth and development of our business," he added.
Funding Circle sets up amateur lenders with small loan-takers, allowing the former to sell on their parts of the loan if they want to cash out.
Please log in or register with belfasttelegraph.co.uk for free access to this article.
However, last month it was revealed that the time investors had to wait to cash out had risen to three months from just a few days in January.