Under the agreement, Victory Park Capital has committed to finance up to USD 420 million in loans to small business originated via Funding Circle in both the UK and US over the next three years. Victory Park was an early partner with Funding Circle in the US.
Victory Parks partnership with Funding circle comes after the US firm invested GBP 150 million (USD 231.54 million) in British peer-to-peer lending platform Assetz Capital under a five-year contract at the end of January 2014.
Funding Circle currently lends around GBP 40 million per month in the UK, and, with the new partnership, that amount is expected to double over the next 12 months. It has lent over USD 800 million to small businesses globally since its founding in 2010.
The market for peer-to-peer (P2P) lending in Britain last year totaled GBP 1.7 billion, of which 749 million pounds was business lending, according to a study by the University of Cambridge and charity Nesta.
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