Funding Circle secures £230m from Citi to expand SME financing

Funding Circle, the UK’s leading small and medium-sized enterprise (SME) finance platform, has secured a £230m credit facility from Citi, marking a significant milestone in its continued expansion of flexible financing solutions for SMEs.

This substantial funding will be allocated to support the further growth of Funding Circle’s innovative payment solution, FlexiPay. The product has demonstrated remarkable traction in the market, recently surpassing £1bn in credit extended. Its revenue tripled and the volume of transactions doubled in FY24, reinforcing the demand and effectiveness of the platform’s offerings. With this latest development, the company’s total credit extended to SMEs across the UK has now exceeded approximately £15bn.

In addition to enhancing FlexiPay, the credit facility will bolster the company’s relatively new business credit card, which was introduced in September 2024. These new tools, combined with Funding Circle’s longstanding term loan services, are broadening the suite of financial solutions accessible to the UK’s SME sector.

The success of these products underscores the strength of Funding Circle’s proprietary technology and its robust credit assessment capabilities. These tools enable the company to deliver reliable returns while supporting the varied needs of its SME clients.

Dipesh Mehta, Chief Capital Officer at Funding Circle, emphasized the significance of this development. He noted that the credit facility would further strengthen the company’s capacity to assist UK SMEs with flexible funding options. Mehta reiterated the company’s commitment to empowering small businesses, which he described as the “backbone of the UK economy.”

Founded in 2010, Funding Circle has now supported over 110,000 UK businesses with credit. The platform combines data-driven technology with personalized service to offer an optimal borrowing experience for SME clients. For institutional investors, it provides access to a differentiated asset class within a typically underserved market, delivering strong and attractive returns.

This new funding round from Citi reflects Funding Circle’s unwavering dedication to making financial services more accessible and innovative for small businesses, while reinforcing its leadership in the SME lending space.