FOLK2FOLK has celebrated its milestone 10th anniversary this year, providing access to finance for small business owners, and monthly income for private investors for over a decade.
Originating in Cornwall, FOLK2FOLK was founded to address the significant funding gap that faced local businesses, and to provide investment opportunities for local savers and investors.
Within a year, FOLK2FOLK facilitated £22m in loans.
Early growth propelled the company beyond its Cornish roots, and by early 2015 nearly £50m of funding had been invested within Cornwall and Devon.
The company went on to expand nationally, providing funding for regional small businesses and presenting property-secured investment opportunities for private investors across the UK.
FOLK2FOLK has since grown, having facilitated more than £653m in business loans across regional UK.
Louis Mathers (pictured), co-founder at FOLK2FOLK, said: “There was definitely an anti-establishment element to why FOLK2FOLK was started.
“We wanted to demonstrate that we could provide funding, and investment opportunities, better than the banks.
“There are invisible barriers to finance for rural small businesses and in effect, they are discriminated against compared to their urban counterparts. We wanted to level the playing field for these businesses and our answer was to organise the funding ourselves.”
Mathers added: “We’ve always operated on the basis of fair exchange, working to balance the funding needs of borrowers and the risk and reward expectations of investors.”
Over the decade, FOLK2FOLK has helped many businesses, including farm diversification projects, renewable energy schemes, small-scale property developments, and leisure and tourism facilities.
Mathers continued: “Our operations have undeniably led to more prosperous rural locales and it’s not hard to see the impact when speaking with our customers.
“Growing a business within a new industry during uncertain times was challenging. But looking back, it’s empowering to see how FOLK2FOLK stayed the course, achieving market-leading success and profitability in an industry that has seen significant attrition over the years.
“I am extremely proud of what we have achieved over the past 10 years. I am grateful to those who believed in the FOLK2FOLK vision from the start and to our investors, borrowers and partners.
“By pulling together, we have created a shining example of how sharing capital resources can make a meaningful difference in people’s lives and we look forward to continuing to make a positive impact over the next decade and beyond.”
