Starling Bank has deployed the majority of CBILS loans through Funding Circle
Starling Bank has revealed that the vast majority of its Coronavirus Business Interruption Loan Program (CBILS) funding has gone to small businesses through its Funding Circle partnership, rather than directly from the bank itself.
Statistics from the challenger lender showed that by the end of July it had loaned £ 227.75million to small businesses through Funding Circle, as part of a deal. to finance £ 300million in CBILS loans via the peer-to-peer lending platform.
By comparison, Starling Bank’s own CBILS loan arrangements totaled £ 2.4million.
The bank said it had focused on deploying funds through the Rebound Loan Program (BBLS) versus CBILS loans and by the end of July had paid out £ 673million through BBLS.
“The imperative with CBILS and BBLS was, and still is, to get money into the hands of business owners quickly,” said a spokesperson for Starling Bank. Peer2Peer Financial News by email.
“We felt that Funding Circle was in a good position to deploy these loans quickly. For our own clients, a BBLS loan was often more appropriate.
Fundraising circle announced last month that it had approved around £ 460million in CBILS applications and had generated £ 300million as of June 30, 2020.
“It’s great to see so many clients accessing both CBILS and repayment loans through Funding Circle and Starling, and we are delighted that our partnership is working well to serve small businesses at this important time,” said said a spokesperson for Funding Circle.
Nic Conner, research consultant for Rangewell corporate finance experts, praised the CBILS partnership between Starling and Funding Circle.
“Funding Circle has been the UK’s largest unsecured commercial lender for a decade now, so it’s no surprise that Starling Bank is looking to them to help secure coronavirus financing for their clients,” Connor said.
“Starling launched its business loan product when the world was in crisis, while Funding Circle has a proven credit scoring model and has the systems in place to deliver the funds.
“This is just a perfect example of how neo-banks and platform lenders can work together. Starling had the clients pre-valued and the deposits to lend, while Funding Circle had the technical know-how and the pedigree to pull the money out.
Starling Bank also revealed that its loan portfolio had grown from less than £ 100million in November 2019 to over £ 1 billion. He said he remains on track to break even by the end of 2020.