UK SME finance platform Funding Circle has facilitated its ninth public securitisation, SBOLT 2025-1, with loans contributed by Waterfall Asset Management.

The latest development brings the total securitised issuance through the platform to approximately £2.17bn ($2.91bn).

Funding Circle said that investor demand for its SME loans and related bonds underscores the asset’s attractiveness, reinforcing its position as one of the leading issuers of SME asset-backed securities in the UK and Europe over the last ten years.

It added that the securitisation was “well-received by” the market, even amid significant economic fluctuations.

BNP Paribas served as the sole arranger, with Citi as joint-lead manager.

Funding Circle's platform and technology allow institutional investors to deploy capital to a diverse range of UK SMEs.

Funding Circle chief capital officer Dipesh Mehta said: “This transaction is a testament to the track record Funding Circle has built, and the strength and attractiveness of UK SME credit as an asset class, highlighting our advanced capabilities in assisting our investor partners to access deep and liquid capital markets.

“Despite challenging market conditions, the positive reception for this issuance demonstrates continued investor appetite for these assets. We remain committed to empowering our institutional partners to effectively deploy capital to hardworking SMEs across the UK, fostering economic growth and opportunity.”

In March 2025, Funding Circle reported a profit before tax of £3.4m for 2024, excluding exceptional items.

This marked a turnaround from the previous year's loss of £9.9m. Credit extended soared 47% year-on-year to £1.89bn while balances under management slightly decreased to £2.83bn from £2.92bn in the previous year.

The company's revenue grew to £160.1m, compared with £130.1m a year ago.

Term loans, in particular, saw an increase in profitability, with profit before tax pre-exceptionals reaching £19m, up from £6.5m in 2023.

"UK SME lender Funding Circle enables ninth public securitisation " was originally created and published by Leasing Life, a GlobalData owned brand.

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