Funding Circle completes tenth SME ABS deal surpassing £2.5bn

Funding Circle has completed its tenth public securitisation of loans originated on its platform, taking total issuance under its SBOLT programme to approximately £2.5 billion and reinforcing its position as one of Europe’s leading issuers of SME asset-backed securities.

The latest transaction, SBOLT 2026-1, is backed by loans owned by Waterfall Asset Management (WAM) and marks a decade of public market issuance for the UK SME finance platform.

Since launching its securitisation programme in 2016, Funding Circle has helped establish SME lending as an institutional asset class, creating access to large-scale funding pools that support lending to small businesses across the UK.

Across its ten public SBOLT transactions, the platform has facilitated around £2.5 billion of securitised issuance and supported lending to more than 33,000 UK SMEs.

The company said the latest transaction was well received by investors, reflecting strong demand for SME-backed assets and confidence in Funding Circle’s long-term performance and programme-based approach to issuance.

SBOLT 2026-1 also marks the first time the British Business Bank has participated in a Funding Circle public securitisation, broadening institutional involvement in the UK’s SME asset-backed securities market.

Funding Circle said the participation of the British Business Bank represents a significant milestone in the continued development of SME ABS as an established asset class, helping to channel additional capital to smaller businesses.

“Ten SBOLT transactions is a significant milestone for Funding Circle, enabling our institutional partners to effectively deploy capital to support UK SMEs for more than a decade. The success of this programme reflects the quality of our platform and the increasing maturity of the UK SME ABS asset class.

“The British Business Bank shows great support for UK SMEs and we’re delighted to be working with the Bank for the first time in this capacity, alongside other new and long-standing investors – broadening investor participation in SME finance as an asset class, funnelling capital to the real economy and supporting job creation.

“The demand for this transaction as evidenced by the strong pricing achieved, especially in this market environment, underlines the confidence investors have in Funding Circle and the proven performance of our tech platform and robust credit assessment capabilities.”

The British Business Bank said the transaction aligns with its objective of supporting a more diverse and resilient small business lending ecosystem.

“Funding Circle’s tenth public securitisation marks an important milestone in its continued development of the UK’s small business finance market, and we’re delighted to be collaborating on this type of transaction with them for the first time.

“At the British Business Bank, we are committed to supporting a more diverse and resilient small business lending ecosystem, including by supporting smaller business securitisation markets to enhance funding options for lenders. Transactions like this directly help broaden the range of finance available to smaller businesses across the UK, enabling them to invest, grow and contribute to their local economies.”

Waterfall Asset Management, which has partnered with Funding Circle since 2018, said the transaction demonstrates the growing sophistication and credibility of the SME ABS market.

James Cuby, head of Europe at Waterfall Asset Management, said: “We’ve worked with Funding Circle since 2018 to support thousands of small businesses through their platform, and this transaction allows us to further support the UK SME market while achieving our strategic investment goals and allowing a broader range of market participants to access this asset class.

“Funding Circle’s SBOLT ABS programme is now seen by many as one of the prime examples of how forward flows and partnerships with platforms should work.”

According to data from J.P. Morgan ABS Research, Funding Circle has been the leading public SME ABS issuer in the UK and Europe over the past decade.