Citi Funding Circle SME finance Waterfall UK 13-02-2026Funding Circle unlocks £700m to meet growing SME credit demandFunding Circle Holdings plc has strengthened its long-standing partnership with Waterfall Asset Management through a new £700m agreement, marking another milestone in the platform’s evolution as a leading lender to UK small businesses.Announced in London on 12 February 2026, the transaction also involves Citi and is structured in two parts. Waterfall has committed to a £700m forward flow over two years to fund Funding Circle’s shorter-term loan product, supported by senior financing from Citi. In addition, Waterfall will acquire an existing loan portfolio worth approximately £120m.The move reflects Funding Circle’s strategy of launching and refining new products on its own balance sheet before scaling them with institutional partners once the research and development phase is complete. By transitioning this product to institutional funding, the company is increasing its capacity to meet rising demand for fast, flexible credit among UK SMEs.The deal underscores the depth of the relationship between Funding Circle and Waterfall, which began in 2018. Last year, Waterfall surpassed £3bn in total lending through the platform, highlighting the scale of their collaboration.Dipesh Mehta, Chief Capital Officer at Funding Circle, described the expanded partnership as a strong endorsement of the company’s credit underwriting and capital markets expertise. He noted that the significant forward flow arrangement would help ensure continued access to timely funding for UK small businesses.James Cuby, Head of Europe at Waterfall, said the firm remained confident in Funding Circle’s technology and credit capabilities, while Sebastian Walf, Managing Director at Citi, expressed support for providing senior financing for the transaction. #sme finance
Funding Circle Holdings plc has strengthened its long-standing partnership with Waterfall Asset Management through a new £700m agreement, marking another milestone in the platform’s evolution as a leading lender to UK small businesses.Announced in London on 12 February 2026, the transaction also involves Citi and is structured in two parts. Waterfall has committed to a £700m forward flow over two years to fund Funding Circle’s shorter-term loan product, supported by senior financing from Citi. In addition, Waterfall will acquire an existing loan portfolio worth approximately £120m.The move reflects Funding Circle’s strategy of launching and refining new products on its own balance sheet before scaling them with institutional partners once the research and development phase is complete. By transitioning this product to institutional funding, the company is increasing its capacity to meet rising demand for fast, flexible credit among UK SMEs.The deal underscores the depth of the relationship between Funding Circle and Waterfall, which began in 2018. Last year, Waterfall surpassed £3bn in total lending through the platform, highlighting the scale of their collaboration.Dipesh Mehta, Chief Capital Officer at Funding Circle, described the expanded partnership as a strong endorsement of the company’s credit underwriting and capital markets expertise. He noted that the significant forward flow arrangement would help ensure continued access to timely funding for UK small businesses.James Cuby, Head of Europe at Waterfall, said the firm remained confident in Funding Circle’s technology and credit capabilities, while Sebastian Walf, Managing Director at Citi, expressed support for providing senior financing for the transaction.