2nd September 2019 – FOLK2FOLK, the Cornwall-based Peer-to-Peer lending platform for local, rural and SME businesses, has now surpassed £300 million in lending providing a valuable source of capital to hundreds of businesses across the South West.
FOLK2FOLK, who spearhead The Local Lending Movement, is the third largest peer-to-peer lender to business in the UK in terms of money lent (source: Brismo’s volume indices*). By facilitating the lending of £300 million, the company has enabled small businesses across a variety of sectors, including agriculture, alternative energy, leisure and tourism, hospitality and property development to grow, diversify or refinance.
FOLK2FOLK’s unique local lending model often creates additional value, beyond just a straightforward business loan, through the creation of local jobs, retention of local talent, shoring up of local supplied chains and other positive flow on impacts to the local economy. In 2017, FOLK2FOLK coined the term FOLKONOMICS to describe this trickle-down effect of benefits.
The lending milestone has been reached thanks to an ever-increasing community of individual Lenders and is evidence of investor confidence in the platform. The minimum investment amount on FOLK2FOLK’s platform is £20,000 with many taking advantage of FOLK2FOLK’s Innovative Finance ISA to benefit from the tax wrapper. Lenders typically receive 6.5% p.a interest which is paid monthly, contributing to their financial goals, whether it be supplementary income for retirement or funding a life event like a once in a lifetime holiday
Roy Warren (FOLK2FOLK MD (Interim)): “Reaching the £300 million milestone highlights the important role FOLK2FOLK plays in providing a lifeline to many local and rural businesses as well as providing an additional source of monthly income for our Lenders’ savings pots.
Helping South West businesses have access to much needed capital to secure their growth, development and diversification is at the heart of what we do. The Local Lending Movement can transform local and rural communities by enabling the creation of jobs and revenue opportunities.”
FOLK2FOLK secures all loans against UK property and has experienced zero customer losses since inception in 2013. As with all investments, capital is at risk. Peer-to-peer lending is not covered by the FSCS