Folk2Folk

Folk2Folk
Ltd.
Industry Financial technology, Peer-to-peer lending
Founded April 2013
Founder Mark Parnall
Louis Mathers
Parnalls Solicitors
Headquarters Launceston, Cornwall, UK
Key people
 Jane Dumeresque, CEO
Products Business loan
Commercial and industrial loan
Website www.folk2folk.com

Overview

Folk2Folk[1] is a peer-to-peer business lender (P2P) specialising in local secured lending. As a P2P lender it matches local businesses looking for finance with individual investors giving both sides a great rate and bypassing traditional banks. Folk2Folk only provides secured loans, meaning that each loan is underwritten with property or land as a form of security. It is based in the Launceston, Cornwall, England, and operates online as well as having high street branches across the UK, currently in Devon, Cornwall, Somerset and Gloucestershire.[2] It is the sixth largest peer-to-peer business lender of funds in the UK having lent over £120m to UK businesses.[3]

Folk2Folk also created its own national Legal Panel of local law firms that act on behalf of borrowers to create a legal charge against the property or land being issued as security. This legal panel consists of 18 law firms across the UK with more coming on board every month.

People

Folk2Folk’s Chief Executive Officer Jane Dumeresque was appointed in April 2015.[4] She is a qualified chartered accountant with an MBA from the London Business School who brings more than 25 years of financial services experience to the company. The managing director is David Brown[3] The company chairman is Tim Sawyer, CEO of Start Up Loans and[1] former managing director of internet banking operation, Cahoots. The head of business development and sales, Matt Waterfield, was appointed in June 2016.[5] His former position was general manager for the Middle East & Africa at Friends Provident International.

History

Launched in April 2013,[1] Folk2Folk was set up by Mark Parnall and Louis Mathers, both equity partners of Cornwall-based Parnalls Solicitors. Parnalls is a legal practice with family links to Parnall & Sons Ltd, a British shop and ship fitting and aircraft component manufacturer in Bristol, founded in 1820.

Regulation

Folk2Folk is authorized and regulated by the Financial Conduct Authority[6]

Sectors

Folk2Folk borrowers come from diverse industries including renewable energy, house building, agriculture, leisure facilities and land and property acquisition.[7]

Loan Milestones

After its first year in business (April 2014), Folk2Folk had secured £22m in loans.[8]

By March 2015, Folk2Folk had introduced almost £50m of funding to borrowers predominantly in Cornwall and Devon.[9]

By November 2015, it had introduced over £75 million of funding from its lenders.[3]

In June 2016 the company had passed the £100m milestone of loans funded.[5]

At the time of writing, August 2016, it had secured £107m worth of loans.[10]

Other Milestones

In October 2014, Folk2Folk chose Crediton as the location for its first agency outside of Cornwall.[4] The expansion has helped over 100 new homes to be built[4] and created new jobs.

In August 2015, the firm introduced funding to kick start a mixed-use development project that will help facilitate infrastructure for Cornwall's 6,000-seat sports stadium.[11]

In the same month, it announced the appointment of Stifel, a global wealth management and investment banking firm, as its financial adviser.[12]

In January, 2016, the company announced the creation of a ‘legal panel’ to support its national roll-out strategy.[2] This national network of local law firms carries out the legal work necessary to complete loans in their locality and provides Folk2Folk with local knowledge as part of the security process.

In February 2016, it looked to place shares in the value of £3.5m. The offer consisted of £1.5m in new shares and £2m in shares offered by the founders.[13]

According to Altfi Data: “Folk2Folk has seen year-on-year growth of 433% from August 2015 which compares favorably to the 60% growth of UK P2P (peer-to-peer) business lenders over the same time frame.”[7]

In August 2016, Folk2Folk moved into their new national headquarters at Number One, Launceston.[14]

In August 2016, Folk2Folk pledge support to the Save the High Street campaign.[15]

Awards

In 2015, Folk2Folk was named Best Lending Platform for Small Businesses by news site, AltFi.[3] An independent panel of industry experts and SMEs at the AltFi Awards 2015 said Folk2Folk had “excellent fundamentals, strong values, good customer engagement and clear transparency of fees”. The judges of also highlighted that Folk2Folk's high street offices, which provide an opportunity for face-to-face meetings, was a “key advantage” for its customers, adding: “this kind of access cannot be underestimated or undervalued”.

How it Works

Folk2Folk introduces people with money to invest to businesses looking for finance of at least £25,000. The company requires loans to be secured by land or property owned by the borrower but not the borrower’s home.[7] Lenders are high net worth individuals usually located in the same county as the borrower.[3]

It aims to complete the whole lending process, from application to release of funds, in approx. a week.[1]

This model of allowing people in business to access interest-only funds (and an opportunity for people to lend within their local area) is said to have helped mobilise money in the countryside and re-energized many small businesses that would have otherwise lacked the necessary investment to develop.[2]

According to one lender, it’s a “virtually guaranteed, very low risk lending proposition with a superb rate of return which can’t be beaten by any deposit account”.[16] For borrowers, the interest rates will be the same or slightly higher than from a bank, but, according to one borrower, the speed, flexibility and interest-only repayment make up for it.[16]

Ethos

Folk2Folk is a hyper-local lender based on “traditional values”[17] and a simple, “back-to-basics” way of funding local people and businesses.[18] The company has supported local businesses and injected millions of pounds through investments, by helping local money work for local people. Folk2Folk believes the more business it can help, the more the local economy will thrive.[16] Approximately 75% of Folk2Folk investors are now repeat lenders and 96% of the company’s customers surveyed said their experience has been good or excellent.[7]

References

  1. 1 2 3 4 Eyriey, Nick. "Peer-to-peer lending company launched in Launceston | Business Cornwall". www.businesscornwall.co.uk. Retrieved 2016-09-07.
  2. 1 2 3 "Folk2Folk Launches Legal Panel to Support National Expansion". Crowdfund Insider. 2016-01-25. Retrieved 2016-09-07.
  3. 1 2 3 4 5 http://www.westernmorningnews.co.uk/peer-peer-lender-folk2folk-awarded-best-lending/story-28183808-detail/story.html%23ixzz3rlQvsNfK. Missing or empty |title= (help)
  4. 1 2 3 "Peer-to-business lending firm opens first Devon agency as part of growth plan". 2014-10-07. Retrieved 2016-09-07.
  5. 1 2 Eyriey, Nick. "Folk2Folk passes £100M milestone | Business Cornwall". www.businesscornwall.co.uk. Retrieved 2016-09-07.
  6. ↑ http://www.fca.org.uk/your-fca/documents/foi/foi3875-information-provided. Missing or empty |title= (help)
  7. 1 2 3 4 "Award Winning P2P Lender Folk2Folk Doubles Business in 2015. Targets National Expansion for 2016". Crowdfund Insider. 2015-12-18. Retrieved 2016-09-07.
  8. ↑ "Cornish peer-to-peer lender facilitates £22m loans in just 12 months". 2014-03-20. Retrieved 2016-09-07.
  9. ↑ "Peer-to-peer lender Folk2Folk injects £8.3m into South West economy since January". 2015-03-24. Retrieved 2016-09-07.
  10. ↑ "Folk2Folk: Local, secured peer to peer lending". www.folk2folk.com. Retrieved 2016-09-07.
  11. ↑ "Peer-to-peer lender Folk2Folk introduces funding to kick start Cornwall Stadium project". 2015-08-24. Retrieved 2016-09-07.
  12. ↑ "Cornish Platform Appoints Financial Advisor - AltFi News". Retrieved 2016-09-07.
  13. ↑ "Folk2Folk to Raise 1.5M to Aid National Expansion". 2016-02-16. Retrieved 2016-09-07.
  14. ↑ "Brief: Folk2Folk P2P Lender Opens New National Office to Accommodate Expanding Business". Crowdfund Insider. 2016-07-28. Retrieved 2016-09-07.
  15. ↑ Eyriey, Nick. "Folk2Folk backing Save the High Street campaign | Business Cornwall". www.businesscornwall.co.uk. Retrieved 2016-09-07.
  16. 1 2 3 Folk2FolkUK (2013-04-23), Peer-to-Peer lending company Folk2Folk on BBC Spotlight in Cornwall and Devon, retrieved 2016-09-07
  17. ↑ https://www.folk2folk.com/brochure/index.html%237. Missing or empty |title= (help)
  18. ↑ "Peer-to-peer lending firm reaches £40 million milestone". 2014-12-18. Retrieved 2016-09-07.

    "Peer-to-peer lending company launched in Launceston". Business Cornwall, April 2013

    1. “Folk2Folk launches legal panel to support national expansion” Crowdfund Insider, January 2016.
    2. “Peer-to-peer lender Folk2Folk awarded Best Lending Platform for Small Businesses by AltFi - Western Morning News". Western Morning News, November 2015.
    3. Peer-to-business lending firm opens first Devon agency as part of growth plan. Western Morning News, October 2014.
    4. Folk2Folk Passes £100 Million Milestone. Business Cornwall, June 2016.
    5. Financial Conduct Authority registration. Financial Conduct Authority website, July 2015.
    6. “Award Winning P2P Lender Folk2Folk Doubles Business in 2015” Crowdfund Insider, December 2015.
    7. “Cornish peer-to-peer lender facilitates £22m loans in just 12 months". Western Morning News, March 2014.
    8. Peer-to-peer lender Folk2Folk injects £8.3m into South West economy since January (2015), Western Morning News, March 2015.
    9. Folk2Folk home page, July 2016.
    10. “Peer-to-peer lender Folk2Folk introduces funding to kick start Cornwall Stadium project” Western Morning News, August 2015.
    11. “Cornish Platform Appoints Financial Advisor” AltfiData, September 2015.
    12. Folk2Folk to Raise 1.5M to Aid National Expansion. P2Pbanking.com, February 2015.
    13. Folk2Folk P2P Lender Opens New National Office to Accommodate Expanding Business, Crowd Funder Insider, July 2016.
    14. Folk2Folk backing Save the High Street campaign. Business Cornwall, August 2016
    15. “Peer-to-Peer lending company Folk2Folk on BBC Spotlight in Cornwall and Devon” BBC, April 2013.
    16. The P2P Industry — Folk2Folk brochure, October 2016.
    17. Peer-to-peer lending firm reaches £40 million milestone. Western Morning News, December 2014.
    18. Peer-to-peer lender Folk2Folk appoints new CEO to grow its national presence. Western Morning News, April 2015.
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