Funding Circle Hldgs - Update on Government Schemes
UPDATE ON GOVERNMENT SCHEMES
THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014
Samir Desai CBE, CEO and Founder said: "Our advanced technology, data analytics and originations platform is playing its part in helping thousands of small businesses to access important funds during this time of crisis.
Following our accreditation to CBILS, our
Our focus as a group remains on delivering our long-term priority of profitable growth. Our
● Funding Circle was accredited to CBILS at the end of April and began participating in the programme in early May following the completion of legal and operational approvals.
● Since becoming accredited we have helped thousands of small businesses access much needed funds. We have approved c.
● Funding Circle has represented approximately 16% share of the number of loans approved since we began participating in CBILS.
● Approximately 40% of loan applications have been serviced by our new instant decision lending technology. We are ahead of the expectations we had when we set out our end of year target at our results in March.
● We received an initial allocation of
● Additionally, we have recently received initial accreditation to start offering Bounce Back Loans to existing customers subject to final legal and operational approvals.
● Although the short term level of demand for CBILS and Bounce Back Loans is difficult to forecast, the company believes that COVID has led to an acceleration in the adoption of online borrowing by small businesses. As the largest online small business loan provider in the
● As mentioned in the trading update in April, we proactively brought down origination volumes during the second half of March and April whilst we waited to become accredited to join CBILS. During this time, we furloughed a small number of employees. Nearly all have since returned and we will not claim any money for this period from the Government under the furlough job retention scheme.
● Funding Circle was accredited to offer PPP loans on 15 April. Since launching, we have approved c.
● In order to accelerate the business's path to profitability, we are introducing changes in H2 2020. This includes centralising our US technology team in the
● Since the start of lockdown, we have increased resources on our front line teams and provided some borrowers with short term payment holidays where they have needed them. We continue to work closely with all existing borrowers to help them during these uncertain times and the actions we have taken so far show we are making progress.
● As mentioned in the April trading update, we launched new funding products in 2019 whereby we aggregate loans in warehouses before selling them as bonds to investors. We carry these associated short and long term investments at fair value for loans and bonds that have not yet been sold. As a result of the impact of COVID, we continue to expect the value of these investments will be impacted however at this stage it is too early to quantify the total impact.
About Funding Circle:
Funding Circle (LSE: FCH) is a global SME loans platform, connecting SMEs who want to borrow with investors and lenders in the
This information is provided by RNS, the news service of the
Quick facts: Funding Circle Holdings PLC
Market Cap: £261.68 m
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