Nationwide and Funding Circle launch partnership for American SMEs

By Edlyn Cardoza

Funding Circle, a leading online small business lending platform in the U.S., and Nationwide, one of the nation’s longest-standing insurance and financial services companies, recently announced the launch of a brand new partnership specifically designed to improve access to much-needed capital and business insurance resources and services for American small business owners.

This partnership marks the first time an online lender and leading property and casualty insurer are collaborating to expand critical access to financing and resources for small business owners—many of them may have experienced hardship during the COVID-19 pandemic and are looking to protect their futures. 7 in 10 business owners (72%) feel they will need financing over the next 12 months, finds the Funding Circle 2021 Small Business Survey. The biggest challenges business owners predict facing include making enough profit to cover overhead expenses (36%), paying off debts (31%) and keeping up with demand (28%).

“Today’s hardworking business owners have a variety of insurance and financial needs. They are looking for innovative ways to have those needs met so they can focus on running their companies,” said Kasey Ketcham, Associate Vice President of Commercial Digital Enablement at Nationwide. “This partnership with Funding Circle is another example of Nationwide’s commitment to addressing the challenges small business owners are facing – offering expert guidance and comprehensive insurance and lending resources hand-in-hand to help them make informed decisions to fortify their business and livelihoods.”

Additionally, business owners of colour have been deeply impacted by unequal access to funding throughout the COVID-19 pandemic. Black business owners more frequently feel the need to prepare for future uncertainties, with nearly half (48%) planning to put aside funds in case of a future lockdown, compared to white business owners (28%). This points to the existing racial disparities in access to financial resources felt by business owners of colour, which the partnership can help address.

To support growth and protect their futures, business owners can apply for funding through Funding Circle and insurance through Nationwide. Small business owners can access informative resources on other needs, such as payroll and software, in the new virtual resource centres.

“Funding Circle is thrilled to partner with Nationwide to offer essential resources that seamlessly supplement our customers’ business needs and set them up for success in a competitive market,” said Vipul Chhabra, Managing Director of Funding Circle US. “This first-of-its-kind partnership with one of the country’s leading insurance and financial services providers embodies our core values: to truly support American small business owners in accomplishing their goals, especially among underserved populations that banks typically are not incentivized to reach.”