FOLK2FOLK, a peer-to-peer (P2P) lender for rural and regional small businesses, has collected ?7m from British Business Investments.
British Business Investments, a wholly owned commercial subsidiary of British Business Bank group, aims to support small companies across the UK by boosting the lending capacity of finance providers, including P2P lenders.
Founded in 2013, FOLK2FOLK is a marketplace lending platform that enables institutional and retail investors invest into small businesses in the UK. Investors can earn interest rates of 6.5% p.a., receive interest payments each month and have loans secured against land of property.
Companies can use FOLK2FOLK to access business loans from ?100,000 on repayment terms between six months and five years.
FOLK2FOLK co-founder and director Louis Mathers said, ?By focusing on rural and regional businesses, FOLK2FOLK serves an extremely viable but underserved part of the SME landscape. Too often, investments overlook businesses operating outside of large urban areas. We founded FOLK2FOLK on the belief that something needed to be done about this regional disparity in funding.p>
Since it was established in 2014, British Business Investments has committed more than ?3bn to finance providers.
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