Entrepreneurs back online finance marketplace

Date: 10th October 2011

Small business owners around the UK could be set for a finance boost following the launch of a new online marketplace.

The Funding Circle uses almost £12 million of savers' money and makes it available to small businesses in need of finance, the Telegraph reported.

Ed Wray, Charles Dunstone and Sami Lababidi, the entrepreneurs behind Betfair, Carphone Warehouse and Playfish respectively, have invested in the scheme and believe it will offer small firms a viable alternative to bank loans.

Mr Wray told the newspaper that the current economic environment is crying out for an innovative solution such as the Circle.

"When banks are reluctant to lend to small businesses and retail investors are getting poor levels of interest on their money, the timing is perfect for this model," he said.

Funding Circle co-founder Samir Desai added: "We want to do to the banks what Betfair did to bookmarkers."

Under the terms of the scheme, small enterprises can borrow between £5,000 and £100,000 and the funds will usually be made available within ten days.

Posted by Emily Smith