Funding Circle Expanding to Accommodate Small Business
Despite a few minor setbacks at the end of last year, the peer-2-peer lending industry doesn’t appear to be slowing down.
Funding Circle, a P2P lender from San Francisco, is initiating a plan to expand its services to accommodate the rapid growth in the small business loan market.
The firm is considered one of the premier marketplace lenders, so its move to expand further into small business loans is seen as an important development for the industry as a whole.
The Bay Area firm announced last week that it would expand its staff by close to 10 percent over the coming months.
Funding Circle said that even though the global economy was underperforming, many sectors of the US economy are still steaming ahead.
The firm noted that the small business sector in particular was ready to explode due to an enormous amount or pressure building up.
Large banking and lending institutions have been wary to extend further into the economy due to servicing costs and other risks.
Funding Circle said it would focus primarily its search for employees primarily within the San Francisco Bay Area.
It prefers to keep the business centered and organized rather than spread throughout tech centers across the US.
Funding Circle may be the perfect company to service the growing online small business loan market.
The firm’s average customer is a small business with average revenue of $1.7 million, with most customers being small businesses generating at least $150,000 in income and needing loan terms of close to 5 years.