a business lending revolution: how smes are benefiting from peer-to-peer lending | accountex 2015
TRANSCRIPT
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Funding Circle Limited is authorised and regulated by the Financial Conduct Authority and entered on the Financial Services Register under firm registration number 635439.
Funding Circle is not covered by the Financial Services Compensation Scheme. Registered in England (Co. No. 06968588) with registered office at 3 Dorset Rise,
London, EC4Y 8EN.
&
• What is Alternative Finance
• Funding Circle
• The Future of Finance
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Contents
• The “big 4” dominate the SME market
• 70% to 85% market share
• Finance gap between £84 – £191 billion over next 5
years (Breedon Report)
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The Status Quo
BIS Consultation Dec 2014:
• 71% of SMEs who look for funding only approach one provider
• >50% of all cases this will be their main bank
• 37% of SMEs appear to give up their search for finance and
cancel their spending plans after their first rejection
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The Status Quo
• Peer-to-Peer, Crowdfunding, Marketplace
lending
• Connects lenders/equity investors with
borrowers
• Alternative security & credit scoring
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What is “Alternative” Finance
Founded August 2010
200+ Staff in the UK
100+ staff in the US
Authorised and regulated by the Financial Conduct
Authority
Money Facts: Best Alternative Lender 2015
5th Largest net lender (BoE Funding for Lending
report).
All statistics correct as of April 2015
Funding Circle – Who are we?
Index Ventures
Union Square
Ventures
AccelPartners
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Baillie Gifford
DST Global
Temasek
BlackRock
Sands Capital
Rabbit Capital
Funding Circle Model: Connecting lenders & borrowers
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Business Loan
Interest and Principal
Lender SME Borrower
40,000+ active retail investors on the
platform
A number of institutional investors
Facilitated lending to 8,000+ businesses
All figures as of April 2015
Over $1 Billion lent
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What our underwriters assess
YES / NO DECISION TYPICALLY WITHIN 48 HOURS
• FINANCIAL: performance, ratios, trends
• AFFORDABILITY: on current financials
• BALANCE SHEET: ratios, size
• DEBT: levels, coverage & ability to repay
• EXPERIAN PERFORMANCE: current, historic
• REGISTERS: asset, charges or mortgage
• BUSINESS: age, stability, cash-flow management
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The Experience for the Borrower
• One point of contact throughout the whole process
• Funds in their account in as little as 7 days from application
• Engagement with a wider audience of investors – builds confidence in the entrepreneur that people believe!
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Case Study
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The Future of Finance
Any lender can interact with any borrower irrespective of geography, scale or language.
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Thank You
www.fundingcircle.com
Daniel Sinclair Taylor
0207 401 1125