Funding Circle and PwC have announced an agreement to support growing British companies’ access to finance.
The arrangement will see PwC refer small business clients seeking alternative sources of finance to Funding Circle.
Lending to small business via alternative finance has grown by more than 250% in the last year, and has accounted for approximately half a billion pounds of lending in 2014 alone. However, many business owners are still unaware of the alternatives to their bank when it comes to funding. Recent research has found that only 47% of businesses are aware of alternative finance sources.
James Meekings, co-founder of Funding Circle, said: “Some 77% of businesses that have borrowed through Funding Circle would always come back to us first in the future. However, many small businesses owners are still unaware of the choice now available to them. We’re excited to be working with a trusted advisor like PwC to raise the profile of our industry.”
As part of the agreement, new Funding Circle borrowers will be able to access PwC’s My Financepartner, a new subscription-based accounting service aimed at smaller, growth–oriented companies. The package includes business analytics and compliance support and is designed to be used in conjunction with regular face-to-face meetings with a PwC accountant.
Tony Price, the Partner at PwC, leading the My Financepartner service, said: “Combining access to finance and expert accounting support addresses two of the most fundamental issues facing early-stage enterprises. My Financepartner has been designed to help entrepreneurs address the challenges of growth through tailored accounting support and financial advice. Now, by working with Funding Circle, we can better address our clients’ funding needs by complementing traditional finance options with new alternatives. Our objective is to help British businesses to get to the next level of business growth.”
To date, Funding Circle has helped more than 5,500 businesses borrow £370 million through its marketplace. Following recent Bank of England Funding for Lending data, Funding Circle is now one of the largest sources of finance for small businesses in the UK.
