Folk2Folk, a peer-to-peer (P2P0 lending platform for local and rural businesses, announced on Monday it has now lent £200 million, providing a valuable source of capital to hundreds of local businesses across the UK. According to the online lending, this milestone demonstrates the strong demand in the company’s Local Lending Movement as Lenders and Borrowers are attracted by Folk2Folk’s platform, providing a fair exchange that sees no difference between what Borrowers repay and Lenders receive on a monthly basis.
The lender reported that the £200 million has enabled hundreds of businesses across the UK in agriculture, the visitor economy and property sectors to grow, diversify or refinance, all whilst adding value to the UK economy by creating additional revenues and local jobs. This local economic model, known as Folkonomics, is helping to build socially and financially successful communities as part of The Local Lending Movement.
Folk2Folk’s lending milestone was reached thanks to a growing community of local Lenders who have placed £20,000 or above on the lender’s platform. The average lent per Lender now exceeds £65,000. Lenders receive 6.5%pa interest which is paid monthly, helping them achieve their financial goals, whether it be an additional income for retirement or funding a life event like a once in a lifetime holiday. Speaking about the milestone, Giles Cross, Folk2Folk CEO, stated:
“Reaching £200 million lent highlights the important role Folk2Folk plays in rural areas, providing a lifeline to many businesses seeking debt finance for growth, diversification or development. That said, £200 million lent cumulatively isn’t the metric that really excites me. What motivates me, is not the volume of money lent but the number of businesses we’ve helped access the capital they need to secure their growth, development and diversify. That’s the number I care about the most, and I’m excited that Folk2Folk will continue to help hundreds more businesses across rural communities as we grow.”
Cross then noted:
“We’re also very proud to have an offering our Lenders love, as they enjoy participating in The Local Lending Movement, transforming their local communities to help create new jobs and revenue opportunities for rural and local UK businesses. And coupled with this, the knowledge that our inflation-beating interest rate is helping to bolster our Lenders’ income is a source of great pride for all of us at Folk2Folk. Our business is built on the value of fair exchange, where the bigger we get, the more our customers benefit on both sides of the equation.”
Folk2Folk added it secures all loans against UK property and reports zero customer losses on the platform since inception in 2013. With peer-to-peer lending, capital is at risk and is not covered by the FSCS.