Funding Circle lending contributes £7.9bn to the UK economy
Following years of economic turbulence, UK small and medium-sized enterprises (SMEs) are ready to invest, innovate, and grow. Yet, as traditional high-street banks continue to restrict access to capital, a widening “SME finance gap” threatens to stifle the UK’s economic recovery.
New research published today by Oxford Economics and Funding Circle reveals that fintechs and alternative lenders are stepping into this void with record-breaking impact. In 2025, Funding Circle’s £3bn of active loans under management generated a massive £7.9bn contribution to the UK economy.
The report highlights how platform lending is breaking the SME investment deadlock, providing the fast, flexible capital required to drive the nation’s broader “Growth Mission.”
Beyond GDP, the economic activity unlocked by Funding Circle sustained 117,000 jobs across the country and generated £2.2bn in tax revenues for the UK Exchequer – equivalent to the annual salaries of roughly 58,000 nurses.
Lisa Jacobs, chief executive officer at Funding Circle, said: “SMEs are the backbone of our economy. They drive growth, create jobs, and keep our communities moving. This report shows the massive ripple effect created when we unlock capital – contributing £7.9bn to UK GDP and sustaining 117,000 jobs across the country. It’s clear that when we get more funding into the physical economy – everyone wins – and we’re moving at pace to ensure every small business has the backing it deserves.”
Funding the Regions and the High Street
The research underscores the vital role of alternative finance in driving regional equality. In 2025, Funding Circle provided loans to SMEs in every single parliamentary constituency in the UK, averaging £2.0m per constituency.
In underserved areas, the platform has become a core financial support; for example, Funding Circle accounted for 25% in Warrington North, and 25% in Bolsover.
The funding is also revitalizing core sectors of the economy. Retail and wholesale businesses accounted for 22% of Funding Circle’s active loans, followed closely by construction at 17%, and professional services at 11%.