AIM-listed GLI Finance (GLIF) has led a funding round into FundingKnight, a platform for British businesses to access lending.
Founded by Graeme Marshall, who previously built a specialist equity release business which was listed on AIM and sold for £35 million in 2010, Southampton-based FundingKnight offers loans of between £25,000 and £100,000 for periods of up the three years.
Businesses looking to secure loans from the platform must be based in the UK and have two years’ trading history and accounts.
The £1.5 million investment is in the form of equity and preference shares and will see GLI Finance secure itself a 20 per cent stake in the web business.
Marshall, CEO and founder of FundingKnight, comments, ‘Crowd lending is set to become a global market and, in the UK alone, crowd lending has now passed £500 million.
‘There is excellent complementarity between GLIF’s other loan platforms and our business and we look forward to working with Geoff and his wider team.’
More on crowdfunding:
- Crowdcube inks FSA authorisation as it looks to build on surge
- UK crowdfunding institutions unite to create regulatory body
- CrowdBnk’s attempt to bridge the crowdfunding divide
GLIF itself is a loan company which lends to small and medium-sized companies. Its main objective, the business reports, is to invest principally in syndicated corporate loans issued primarily by companies with ‘experience management, a significant finance or strategic sponsor, a strong competitive position and positive cash flow’.
As part of the new investment in FundingKnight, GLIF CEO Geoff Miller will be joining the company’s board.
Miller says, ‘This investment is a perfect fit within our strategy of focusing on niche lending to SMEs and adding further geographical diversification to our business by expanding further in continental Europe and the UK.
‘We are delighted that Graeme and his team have chosen to partner with us and GLIF looks forward to building on this investment by also participating in new lending and in FundingKnight’s Loan Exchange.’