FOR SALE: Funding Circle US?

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Funding Circle WebFunding Circle has decided to focus just on its UK business. The company is open to selling off its US business, it revealed.

“Whilst the US business offers attractive long term growth, it also requires a significant amount of cash and capital to grow the SBA proposition and we don’t believe that this is the best course of action for the Group,” said Funding Circle CEO Lisa Jacobs. “We have received indications of interest for the US business and will update further in due course.”

The US segment originated $491M in 2023 while generating $40.4M in revenue and a $29M net loss. That loss was steeper than the $11.6M recorded in 2022.

Funding Circle had just recently secured an SBLC license after years of lobbying for the SBA to end the 40-year pause. When that happened, it was anticipated to be a big boon for them.

Compared to the competition in 2023, Funding Circle’s American origination volume was only 1/6th that of Enova’s.

Last modified: March 8, 2024

Category: Business Lending, Industry News

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