Just Cashflow and FundingKnight linkup to fund UK Businesses
UK businesses keen to grow and expand are set to benefit from an innovative linkup between leading P2B crowd lending platform FundingKnight and alternative finance provider Just Cashflow PLC. The companies have entered into a relationship that is intended to raise a minimum of £4m from retail investors through a series of loans.
Just Cashflow provides businesses with an alternative to a traditional bank overdraft and in its first year has built a loan book of over £6m. Expert and experienced underwriting has delivered a high quality loan book with zero capital losses. The arrangement will leverage this underwriting experience and effectively expand the range of businesses that can be supported through the FundingKnight lending platform.
FundingKnight currently offers term loans to businesses with a minimum two year trading record and two other products – property bridging and renewable energy, which allow other businesses to tap into its sources of funding. The new arrangement with Just Cashflow is consistent with FundingKnight’s promise to support small and medium companies who typically struggle to secure finance through traditional lenders.
Under the new arrangement, the funding generated by FundingKnight will provide finance facilities to growing UK businesses that have already been approved by Just Cashflow. Typically, these companies might be too young to qualify for the FundingKnight loan but meet Just Cashflow’s underwriting criteria that places additional emphasis on experience, business planning and Directors’ personal and financial involvement. Just Cashflow will then use this new capital to support more UK businesses.
Just Cashflow director, John Davies, says: “This is excellent news for UK businesses as our experience shows that as they grow they need access to finance and need to establish a record of successfully borrowing and making repayments. This arrangement will effectively increase the early funding available to businesses and importantly help them establish a good credit record which will be invaluable in the future.”
FundingKnight’s chief executive, Graeme Marshall commented: “This relationship represents a fantastic way for FundingKnight lending community to continue to support a wide range of UK SME’s by plugging into Just Cashflow’s experience, underwriting and growth aspirations. This provides a complementary investment opportunity to the wide range of other FundingKnight loans, and enables more UK businesses to benefit from the alternative finance space.”
Other partnership news:
Sainsbury’s and Celesio form pharmacy partnership
