Funding Circle has joined forces with asset management firm Victory Park Capital in a deal intended to free up $420 million for small business loans.

The two organisations have collaborated in the past, but a statement released by both parties claims that this latest deal “significantly extends the existing relationship”.

Funding Circle has facilitated $850 million in loans to around 8,000 small businesses globally across the past 12 months. In the UK small business loans of £5,000 to £1 million are available.

Victory Park Capital was founded in 2007 and has its headquarters in Chicago. It focuses on mid-market businesses from a diverse range of industries.

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Principal Gordon Watson said he was “pleased to expand our on-going partnership to both sides of the Atlantic”.

“With this additional lending facility, Funding Circle will be well-positioned to continue to disrupt the traditional banking model through 2015 and beyond,” he added.

Funding Circle head of UK markets Sachin Patel added that the partnership is “testament to our proven track record in facilitating loans with attractive yields and consistent credit performance”.

Further reading on funding: What are potential sources of funding for your business?<