Funding Circle and Affinity Plus FCU partner to improve credit access for small businesses
By Edlyn Cardoza
Funding Circle, the online platform for small business loans, and Affinity Plus Federal Credit Union (Affinity Plus), a Minnesota-based credit union, are partnering to provide small businesses with access to credit in communities throughout Minnesota and across the country.
“Our work with Affinity Plus underscores our commitment to building a more inclusive financial environment for small businesses to grow and thrive with a diverse array of institutions,” said Angus Sanders, Chief Revenue Officer at Funding Circle US. “We are excited to help Affinity Plus reach even more small business owners playing a critical role in local communities and supporting local economies throughout the country.”
The partnership enables Affinity Plus — the first credit union investor to partner with Funding Circle — to purchase loans originated through Funding Circle’s world-class machine learning and technology platform. The platform offers investors a highly efficient and cost-effective mechanism to lend directly to small businesses and, in turn, provides business owners with a streamlined application process and timeline. In addition to its members in Minnesota, Affinity Plus will now be able to offer loans to businesses across the nation.
“Affinity Plus is committed to financial inclusion for its members and their communities – by making available affordable products and a deeper connection that helps take the stress out of finances,” said Matt Fuller, Vice President of Finance and Risk Management at Affinity Plus Federal Credit Union. “Funding Circle is a leader in responsible small business lending, and we are thrilled to leverage our partnership to provide businesses throughout the country with fast and simple access to financing, allowing them to grow their business, create new jobs and power the economy.”
Affinity Plus joins a wide range of institutions leveraging Funding Circle’s platform, including regional banks, technology companies, service-to-member institutions, and community development financial institutions (CDFIs), marking another step forward in a growing collaboration between Funding Circle and the banking community. The announcement follows a recent Federal Reserve study showing that Funding Circle has been able to expand credit access to underserved small business owners who are not likely to receive funding from traditional lenders, noting it has done so at a lower cost to borrowers and made it possible for those banks to reach new customers during the pandemic.
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