foreword To contents


A big change is happening in business finance. Small companies are no longer tied to the big banks, with new alternatives such as peer-to- peer loans coming to market. A few years ago, the big four banks were pretty


much the only choice for small enterprises. In fact, as a business owner you didn’t even get the choice of four banks because you needed a business current account before you could get a loan, leaving you with the choice of one – your main business bank. Comparing our finance landscape to other countries’, the UK had the fewest options: small businesses really were at the mercy of the banks. This just doesn’t make sense. When large companies can issue bonds, as John Lewis has done, or list on the stock market to raise funds, why shouldn’t small businesses have the same options? This was the thinking that led us to launching Funding Circle, the first marketplace that allowed good businesses to take loans directly from both individual and institutional investors in the UK. Ultimately, we wanted to create a marketplace just like the London Stock Exchange, but for small businesses loans. With over £37 million lent to date, it’s a solution that’s working. It’s great news that the business finance landscape is changing so quickly, and very exciting to think of the potential of UK SMEs over the coming years, with access to finance becoming a reality again. n


Samir Desai Co-founder and CEO, Funding Circle


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‘A few years ago, the big four banks were pretty much the only choice for small businesses’


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