Alternative small business (SMB) lending platform Funding Circle has announced a new partnership with a traditional lender.
Community financial institution (FI) INTRUST Bank is working with the SMB lending platform, providing funds for loans originated on Funding Circle, the companies said Thursday (Jan. 4). INTRUST Bank said it will roll out its partnership with Funding Circle in several stages, the first of which will consist of financing small business loans on the platform.
Later on, the FI said, it will expand its investment and deploy a funding program that includes joint marketing campaigns.
“Every dollar invested through our platform has a ripple effect in cities and towns across America by enabling Main Street small businesses to grow, hire and expand,” said Funding Circle Co-Founder and U.S. Managing Director Sam Hodges in a statement. “This makes Funding Circle an ideal investment opportunity for banks such as INTRUST focused on bringing tangible impact to the communities they serve, and we look forward to further growing our platform with support from additional institutional partners here and abroad.”
According to the press release, Funding Circle currently includes more than 70,000 investors.
“We are excited to partner with Funding Circle to enhance our ability to serve small business customers,” added INTRUST Bank Chief Financial Officer Brian Heinrichs in another statement. “As a regional bank, we understand that small businesses are the lifeblood of our communities and the nation’s economy. Funding Circle’s customer-focused philosophy and technology platform are an ideal fit for INTRUST.”
The partnership is part of a larger trend of traditional lenders collaborating with alternative players to meet SMB financing demand.
Last year, Funding Circle announced $100 million in equity funding provided by Accel Partners, Index Ventures, Union Square Ventures and Temasek Holdings.