Funding Circle secures £230m credit facility to boost SME financing

SME finance platform, Funding Circle, has secured a £230 million credit facility from global financial services giant Citi, a major vote of confidence in the fintech’s continued growth and innovation in small business financing.

The new funding will be used to accelerate the expansion of Funding Circle’s flexible finance solutions for small and medium-sized enterprises (SMEs), particularly its fast-growing payment product, FlexiPay. Since launch, FlexiPay has extended over £1 billion in credit, with revenue tripling and transactions doubling in FY24 alone. The platform now boasts over £15 billion in total SME lending across the UK.

The facility will also support Funding Circle’s business credit card, launched in September 2024, further diversifying the company’s offerings beyond traditional term loans and reinforcing its position as a one-stop-shop for SME finance.

“This £230 million credit facility further enhances our ability to support SMEs across the UK with flexible funding solutions,” said Dipesh Mehta, Chief Capital Officer at Funding Circle.

“At Funding Circle, we are driven by our mission to support the financial empowerment and growth of small businesses, which are the backbone of the UK economy.”

The success of new products like FlexiPay is underpinned by Funding Circle’s proprietary technology, data-driven credit assessments, and commitment to delivering competitive returns for institutional partners.