Funding Circle (LSE: FCH), which operates as the United Kingdom's premier SME finance platform, has revealed the successful closing of SBOLT 2026-1—its tenth public securitisation involving loans originated via the Funding Circle platform.
Comprising loans held by Waterfall Asset Management (WAM), this deal represents a full decade of public market issuance for Funding Circle. It solidifies the firm's standing as the foremost public SME ABS issuer across the UK and Europe during that timeframe*, while also highlighting the breadth and sophistication of its SME ABS programme.
Conducted for the benefit of platform investors, Funding Circle has developed a well-regarded securitisation programme that turns SME lending into a recognised asset class. This mechanism allows the platform to tap into substantial, long-dated capital pools for UK small and medium enterprises—fueling their expansion and economic contributions.
Across all ten SBOLT transactions combined, Funding Circle’s programme has:
- Generated total securitised issuance of roughly £2.5 billion from 2016 onward;
- Facilitated financing for more than 33,000 small businesses throughout the UK.
Investors responded favourably to this transaction, drawn by Funding Circle's extensive history of producing consistent, attractive returns alongside its regular programme-based issuance rhythm.
Funding Circle maintains a long-established partnership with the British Business Bank, and SBOLT 2026-1 marks the Bank's initial involvement in a public securitisation from Funding Circle. This participation by the British Business Bank widens the institutional investor base and signals another step forward in the evolution of the UK SME ABS asset class.
Thanks to Funding Circle's platform and technology, institutional investors can efficiently channel capital into a varied array of UK SMEs. This provides businesses with necessary funding while offering investors exposure to compelling risk-adjusted returns.
Dipesh Mehta, Chief Capital Officer at Funding Circle, said: "Ten SBOLT transactions is a significant milestone for Funding Circle, enabling our institutional partners to effectively deploy capital to support UK SMEs for more than a decade. The success of this programme reflects the quality of our platform and the increasing maturity of the UK SME ABS asset class.
“The British Business Bank shows great support for UK SMEs and we’re delighted to be working with the Bank for the first time in this capacity, alongside other new and long-standing investors – broadening investor participation in SME finance as an asset class, funnelling capital to the real economy and supporting job creation. The demand for this transaction as evidenced by the strong pricing achieved, especially in this market environment, underlines the confidence investors have in Funding Circle and the proven performance of our tech platform and robust credit assessment capabilities."
Reinald de Monchy, Chief Banking Officer at the British Business Bank, said: “Funding Circle’s tenth public securitisation marks an important milestone in its continued development of the UK’s small business finance market, and we’re delighted to be collaborating on this type of transaction with them for the first time.
“At the British Business Bank, we are committed to supporting a more diverse and resilient small business lending ecosystem, including by supporting smaller business securitisation markets to enhance funding options for lenders. Transactions like this directly help broaden the range of finance available to smaller businesses across the UK, enabling them to invest, grow and contribute to their local economies.”
James Cuby, Head of Europe at Waterfall Asset Management, said:
"We've worked with Funding Circle since 2018 to support thousands of small businesses through their platform, and this transaction allows us to further support the UK SME market while achieving our strategic investment goals and allowing a broader range of market participants to access this asset class. Funding Circle’s SBOLT ABS programme is now seen by many as one of the prime examples of how forward flows and partnerships with platforms should work.”
*Data source: J.P. Morgan ABS Research
For more information visit: www.fundingcircle.com
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About Funding Circle
Funding Circle (LSE: FCH) is the UK’s leading SME finance platform. Since 2010, we have extended more than £17bn in credit to over 125,000 UK businesses, helping them power the economy and their communities.
By combining proprietary AI-powered credit models with a human touch, we provide a seamless experience that allows SMEs to borrow, pay later, and spend through a single ecosystem. For institutional investors, Funding Circle offers access to an attractive, underserved asset class through a platform built on deep data and a proven track record of robust returns.
