Demand for business loans during the pandemic lifts Funding Circle

Peer-to-peer lender Funding Circle said its total income in the final six months of 2020 was up 26 per cent

Demand for business loans during the pandemic has helped Funding Circle rake in the money.

The online lender, which matches investors who want to lend their cash with companies seeking loans, said its total income in the final six months of 2020 was £121million – up 26 per cent on the same time a year earlier.

And its profits for the year are expected to be no lower than £15million, well ahead of previous expectations.

The firm, which focuses on lending to small and medium-sized enterprises (SMEs), has a record £4.2billion of loans under management.

It originated an all-time high of £1.6billion worth of loans in the second half of 2020 – many of which were handed out under emergency government schemes. 

Founder and chief executive Samir Desai said: ‘As a result of Covid, we are seeing an acceleration in the shift towards online in small business lending.’