Funding circle reaches $ 2 billion in SME loan volume
Alternative loan firm Funding Circle announced that it has reached $ 2 billion in small business loans facilitated through its platform, a figure it says surpasses some traditional US bank loans to SMEs.
in a Press release On Friday (March 1), Funding Circle said its US small business loan volume has given its SME loan portfolio more than “nearly 98 percent of FDIC-insured banks,” citing FDIC statistics on outstanding loans of less than $ 1 million.
“The fact that we have reached this milestone in just over five years, putting ourselves in the same league as some banks established a century ago, is evidence that small businesses are underserved by the traditional banking system,” he said. Financing circle Bernardo Martinez, CEO of the United States, in a statement. “Our goal is to become the first financing choice for businesses nationwide by continuing to look for more ways to drive a faster and better loan experience.”
Today, Funding Circle said it has more than $ 1 billion in small business loans.
Last year, the FDIC warned that the true value and volume of US small business bank loans may be significantly underestimated as a result of banks only reporting SMB loans below $ 1 million. Additionally, the FDIC noted, banks do not include residential real estate loans in their SMB loan volume reports.
There is also a large gap between different banks’ definitions of a small business loan, making it even more difficult to see the true value of outstanding small business bank loans in the US today.
“There is no comprehensive measure of small business lending by banks,” the FDIC said.