The Bank Slate


Funding Circle to sell U.S. business to Ready Capital subsidiary

Funding Circle has agreed to sell its U.S. business to iBusiness Funding, a unit of Ready Capital.

The U.K. company said in a press release that it will sell the business for about $41.7 million in cash. The deal includes all loan portfolios; Funding Circle expects to generate a $12.6 million gain from the sale.

“In March, I announced that we were simplifying the business by exiting the U.S. and focusing on profitable growth in the U.K. business,” Lisa Jacobs, Funding Circle’s CEO, said in the release.

Jacobs said the U.K. business is on track to be profitable in the second half of this year.

The sale is expected to close by the end of this month.

Funding Circle aimed to be a trailblazer in the U.S. The company, which received one of three new SBLC licenses from the Small Business Administration under a plan that drew opposition from banks, never made a government-backed loan.

Leave a Reply

Your email address will not be published. Required fields are marked *