Funding Circle and Atom Bank to provide an additional £150m in financing to UK SMEs
UK challenger Atom Bank has entered a lending partnership with Funding Circle to deploy up to £150 million in funding to small businesses.
Atom forms third lending partnership with Funding Circle
The agreement marks the third such partnership between the two companies and takes Atom Bank’s total lending with Funding Circle up to £800 million.
Through the latest partnership, SMEs will receive support and improved access to finance from the government-backed Recovery Loan Scheme (RLS) offered by Funding Circle.
“The RLS is an important way for us to be able to say yes to more businesses in line with our medium-term plan, and we’re continuing to extend our track record of delivering robust and attractive loan returns for our investors, in spite of the changing economic environment,” comments Lisa Jacobs, CEO at Funding Circle.
Describing Atom as a “long-standing and returning investor”, Funding Circle says the bank will leverage its technology and distribution platform to deploy “much-needed funds to support UK SMEs, helping businesses manage their finances, grow and power their communities”.
Chris Storey, chief commercial officer at Atom Bank, says: “We recently announced our first full year of operating profit, followed by a successful capital raise and securitisation, so Atom is in a particularly strong position to help those firms who may be struggling to access finance.”
The partnership comes just weeks after Atom Bank raised over £100 million in equity capital as part of its plans to “accelerate lending and balance sheet growth”.
In July this year, Atom reported its first ever operating profit, after recording a £2 million loss the year prior.
