Folk2Folk

Folk2Folk is a United Kingdom peer-to-peer and marketplace-lending brand specialising in loans secured against land and property. Founded in Cornwall in 2013, the business emerged in the aftermath of the global financial crisis, when banks were reducing their presence in rural communities, smaller businesses found it harder to obtain working and development capital, and conventional savings returns were low. Its stated purpose is to support prosperity in Britain's regions by linking borrowers with investors through a locally informed alternative-finance model. The platform primarily serves business borrowers seeking at least £100,000 and investors prepared to commit at least £20,000. Borrowing is generally secured against UK land or property other than the borrower's home. The businesses using the service have operated in sectors including agriculture, renewable energy, property development, hospitality, leisure, tourism, and land or property acquisition. Folk2Folk presents its model as a direct form of exchange: investors provide capital to businesses and receive the interest rate paid by the borrower, while Folk2Folk earns revenue mainly through borrower arrangement fees and annual renewal fees. The company initially developed around Cornwall and Devon before expanding its network across the country. A first agency outside Cornwall was established in Crediton in 2014, and subsequent growth included a network of local professional advisers and law firms intended to combine national lending capability with regional knowledge. This structure supports the valuation, documentation, and completion of property-secured loans in local markets. Folk2Folk says its process is designed to provide business finance in weeks rather than the months that can be associated with conventional bank lending. The platform's reported lending volume grew from £22 million after its first year to £50 million by March 2015, more than £100 million in 2016, £250 million in 2018, £300 million in 2019, £400 million in 2021, and £500 million in January 2022. These figures describe cumulative loans introduced or funded through the platform, rather than annual revenue. The company also reported achieving profitability in 2020. In the same year it received British Business Bank accreditation to deliver loans under the Coronavirus Business Interruption Loan Scheme, broadening its role during the pandemic. Folk2Folk is authorised and regulated by the Financial Conduct Authority. In February 2021 it described an evolution from a conventional peer-to-peer platform toward a broader marketplace-lending model, reflecting the participation of both retail and institutional capital. The brand remains focused on property-secured business finance in the UK, with its regional identity and the idea that 'good folks' help other 'good folks' continuing to inform its positioning.

Folk2Folk was established in Cornwall in 2013 against a backdrop of constrained bank lending and weak returns for savers following the 2008 financial crisis. Its founding concept was to connect businesses needing finance with people willing to lend, using land and property as security and emphasising local knowledge. The initial focus was on rural and regional businesses in Cornwall and Devon, where conventional lenders were perceived as less accessible. The platform reached approximately £22 million in cumulative loans after its first year of operation in April 2014. In October of that year it opened its first agency outside Cornwall, in Crediton, Devon. The expansion was associated with financing that supported more than 100 new homes and local employment. By March 2015, almost £50 million had been introduced to borrowers, and by November the total had exceeded £75 million. In 2015 Folk2Folk financed a mixed-use development intended to help provide infrastructure for a 6,000-seat sports stadium in Cornwall. It also appointed Stifel as financial adviser. In January 2016 the company announced a national legal panel made up of local law firms. The panel was intended to assist with loan completion and security work while preserving local expertise as the business expanded nationally. The company also sought £3.5 million through a share placing in February 2016, comprising new shares and shares offered by founders; the available reference material does not establish the subsequent ownership outcome. Growth continued through 2016 and 2017. Cumulative lending passed £100 million in June 2016 and reached approximately £107 million in August. That month Folk2Folk moved into a national headquarters at Number One, Launceston. By August 2017 it reported £176 million in loans. The platform passed £250 million in October 2018. In January 2018 the business launched the Local Lending Movement and the Folkonomics initiative, using these concepts to communicate its regional economic mission and its argument that local capital can support local enterprise. In September 2019 Roy Warren became managing director after four years leading risk and the loan portfolio. Cumulative lending reached £300 million during that year. The company announced profitability in May 2020. During the COVID-19 period it was accredited by the British Business Bank to deliver loans under the Coronavirus Business Interruption Loan Scheme and announced a partnership with CrossLend. In January 2021 cumulative lending reached £400 million. In February 2021 Folk2Folk said that its business had developed beyond a traditional peer-to-peer model into marketplace lending, reflecting a wider funding base that included institutional investors. Cumulative lending reached £500 million in January 2022, and Gary Leitch was appointed chief operating officer in June of that year. The company describes its lending as property-secured and available to businesses across UK regions. It is authorised and regulated by the Financial Conduct Authority. The available reference material does not provide a confirmed current ownership structure, annual revenue, current loan book, or a verified official website URL.

• 2022

  Cumulative lending reaches £500 million

  [1]Folk2Folken.wikipedia.org

  Folk2Folk announced that cumulative lending had reached £500 million in January.

• 2021

  Cumulative lending reaches £400 million

  [1]Folk2Folken.wikipedia.org

  The platform reported £400 million in cumulative lending and announced its evolution toward marketplace lending.

• 2020

  Profitability and CBILS accreditation

  [1]Folk2Folken.wikipedia.org

  The company announced profitability and received accreditation to deliver Coronavirus Business Interruption Loan Scheme loans.

• 2019

  Cumulative lending reaches £300 million

  [1]Folk2Folken.wikipedia.org

  Folk2Folk reported £300 million in cumulative lending and appointed Roy Warren managing director.

• 2018

  Cumulative lending reaches £250 million

  [1]Folk2Folken.wikipedia.org

  The company reported passing £250 million in cumulative loans in October.

• 2017

  Cumulative lending reaches £176 million

  [1]Folk2Folken.wikipedia.org

  The platform reported approximately £176 million in cumulative loans by August.

• 2016

  Lending passes £100 million

  [1]Folk2Folken.wikipedia.org

  Cumulative loans exceeded £100 million in June, and the company later moved into a national headquarters in Launceston.

• 2015

  Cumulative lending exceeds £75 million

  [1]Folk2Folken.wikipedia.org

  By November, the platform had introduced more than £75 million of funding and financed a mixed-use Cornwall development.

• 2014

  First year lending milestone

  [1]Folk2Folken.wikipedia.org

  The company reported approximately £22 million in loans after its first year and opened its first agency outside Cornwall in Crediton.

• 2013

  Folk2Folk founded in Cornwall

  [1]Folk2Folken.wikipedia.org

  The platform was established to connect regional businesses seeking finance with investors through property-secured lending.

A regionally focused UK alternative-finance platform offering property-secured business lending through direct connections between borrowers and individual or institutional investors.

• Business lending · 2013

  Property-secured business loans

  Loans for UK businesses secured against land or property, generally excluding the borrower's home. The platform serves borrowers seeking at least £100,000 and supports uses such as property acquisition, development, agriculture, renewable energy, hospitality, leisure, and tourism.

• Marketplace lending · 2013

  Investor lending platform

  A marketplace through which eligible individual and institutional investors provide capital to business borrowers. Investors receive interest linked to the borrower rate, while Folk2Folk earns fees from borrowers for arranging and renewing loans.

• Government-backed business lending · 2020

  CBILS lending

  Coronavirus Business Interruption Loan Scheme lending delivered under British Business Bank accreditation during the COVID-19 period.

• 2018The Local Lending Movement

  United Kingdom

  A brand initiative presenting local and regional investment as a way to support British businesses and communities.

  Outcome. The available source material does not quantify a specific campaign outcome.

  Source
• 2018Folkonomics

  United Kingdom

  An initiative associated with Folk2Folk's effort to explain regional economic activity and promote its local-lending proposition.

  Outcome. No independently quantified outcome is provided in the available reference material.

  Source

• 2021

  Evolution from peer-to-peer lending to marketplace lendingStrategy

  Background

  The platform had developed beyond a model associated primarily with retail peer-to-peer investors.

  Action taken

  Folk2Folk positioned itself as a marketplace-lending platform serving both individual and institutional investors.

  Aftermath

  The change broadened the description of the platform's funding model while retaining its focus on property-secured UK business loans.

  Source

• 2020

  Entry into CBILS lendingProduct launch

  Background

  The COVID-19 pandemic created acute financing needs for smaller businesses.

  Action taken

  Folk2Folk obtained British Business Bank accreditation to deliver Coronavirus Business Interruption Loan Scheme loans.

  Aftermath

  The accreditation expanded the platform's role in government-supported business finance.

  Source

• 2016

  Creation of a national legal panelStrategy

  Background

  Folk2Folk was expanding beyond its original Cornwall and Devon base and needed local legal and property expertise for loan completion.

  Action taken

  The company established a network of local law firms to support security documentation and loan completion across the UK.

  Aftermath

  The panel supported the company's stated national rollout strategy.

  Source

1. 1Folk2Folken.wikipedia.org