Funding Circle Hits £2.5bn Milestone with Tenth SME Loan Securitisation — Funding Circle Holdings PLC

Event summary

Funding Circle completed its tenth public securitisation (SBOLT 2026-1), totaling £2.5bn in issuance since 2016.
The transaction included loans owned by Waterfall Asset Management and marked the first participation of the British Business Bank in a Funding Circle securitisation.
The programme has supported lending to over 33,000 UK small businesses across all ten SBOLT transactions.
The deal was well-received by investors, reflecting confidence in Funding Circle’s platform and credit assessment capabilities.

The big picture

Funding Circle’s tenth securitisation underscores the maturation of the UK SME ABS market, with institutional investors increasingly viewing SME loans as a viable asset class. The British Business Bank’s participation highlights growing public-sector backing for alternative SME financing structures, potentially opening new capital channels for Funding Circle. The £2.5bn issuance milestone positions the platform as a leader in public SME ABS issuance in Europe, reinforcing its role in bridging the funding gap for small businesses.

What we're watching

Institutional Demand: How sustained investor interest in SME ABS will impact Funding Circle’s ability to scale its securitisation programme.
Regulatory Dynamics: Whether the British Business Bank’s involvement signals broader government support for SME ABS markets.
Market Expansion: The pace at which Funding Circle can diversify its investor base beyond traditional ABS buyers.