Funding Circle has struggled in the public markets since their IPO in 2018; now Funding Circle and their peers have a chance to prove themselves; shares of Funding Circle more than doubled in the last week as news spread that the small business lender would be a part of relief programs in the UK and US; many still question the business models of non-bank lenders, mostly concerned about the dependence on secondary markets to fund loans; but the reality is that banks lack speed, something very important in today’s environment; Ravi Anand, managing director of ThinCats told the FT, “We will find out the men from the boys. No doubt there’s going to be some casualties where credit [decisioning] wasn’t robust enough or funding sources weren’t stable enough…But the ones who come out will be stronger and will get a bigger market share.” Financial Times
