According to a press release, Funding Circle, an online business loan provider in the U.K., will partner with Atom, a UK-based digital bank, for a lending arrangement worth £300 million or around $426 million.
The announcement said that Atom has already lent £350 million or around $497 million via Funding Circle, bringing the overall amount given to £650 million or about $923 million.
Moreover, Atom aims to utilize Funding Circle’s infrastructure for tech and distribution to transfer funding to roughly 4,000 small and medium-sized businesses (SMBs) in the United Kingdom.
Atom will also receive machine learning (ML) tools from Funding Circle, which will help the company run more efficiently. SMBs may request funding and receive lending decisions in a few minutes thanks to Funding Circle’s Instant Decision Lending technology.
Lisa Jacobs, Managing Director of Funding Circle Europe, said that it is “great to see Funding Circle’s machine learning and distribution capabilities being leveraged as a key solution towards increasing the flow of funding to the real economy, powering the economic recovery.”
The collaborative work intends to lend to investors, “including banks, asset management companies, insurance companies, government-backed entities, individuals, and funds,” using Funding Circle’s Recovery Loan Scheme (RLS).
Edward Twiddy, Chief Customer Officer of Atom, commented: “Ever since we started lending to U.K. [SMBs] in 2016, we have been committed to supporting business owners, most recently as a leading lender of broker-led secured loans via [the Coronavirus Business Interruption Loan Scheme (CBILS)].”
“We’re excited to be partnering with Funding Circle, leveraging their market-leading tech to continue our support for British businesses,” he added.
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