Funding Circle closes $252 million securitization

Funding Circle , a small business loan platform in the UK, US, Germany, and the Netherlands, has closed its second asset-backed securitization (ABS) of US small business loans originated through its platform. The $252 million deal is the seventh securitization of Funding Circle business loans globally, and the second in the US after the first securitization in August 2019.

“Funding Circle’s second US securitization furthers our commitment to providing institutional investors with access to this investment class. With our global securitization program and sponsorship capability, we can provide diversified funding for small businesses and deliver capital to this critically underserved borrower segment.” – Bernardo Martinez, US Managing Director, Funding Circle.

Funding Circle enables investors to earn attractive risk-adjusted returns by supporting established and creditworthy businesses. To date, Funding Circle has originated loans to more than 14,000 US businesses, with US borrowers currently averaging 11 years in business and $1.4 million in annual sales. In the US, Funding Circle has totaled $2 billion of cumulative loan originations and $1 billion of loans under management, meaning that within the United States the company holds more outstanding small business loans than almost 98% of banks.

Bottom Line: BlueVine comes to mind.