(Reuters) – Peer-to-peer lending platform Funding Circle said on Thursday it will partner U.S. asset manager Victory Park Capital with the latter lending $420 million to small businesses in the United States and Britain over three years.
Peer-to-peer lending has grown rapidly since the financial crisis as bank credit for small and medium-sized companies has remained scarce.
Victory Park’s partnership with Funding circle comes after the U.S. firm invested 150 million pounds ($231.54 million) in British peer-to-peer lending platform Assetz Capital under a five-year contract at the end of January.
Funding Circle currently lends around 40 million pounds per month in Britain, and, with the new partnership, that amount is expected to double over the next 12 months, the company said. It has lent over $800 million to small businesses globally since its founding in 2010.
The market for peer-to-peer (P2P) lending in Britain last year totaled 1.7 billion pounds, of which 749 million pounds was business lending, according to a study by the University of Cambridge and charity NESTA.