FOLK2FOLK injects £17.3m into SMEs during pandemic


FOLK2FOLK has facilitated more than £17.3m in loans to SMEs during March, April and May while the country has been in lock-down due to the Covid-19 pandemic.

During this period, the total value of loans has increased month on month with the largest single loan in Cornwall being £3.05m for a coastal property development. The majority of loans have been for business growth, property development, farms seeking refinance or loans to diversify.

Roy Warren, FOLK2FOLK Managing Director, said: “Economic stagnancy is not healthy and so throughout the pandemic we’ve continued to lend to businesses. Small businesses are the lifeblood of our economy and we’ve felt it important to keep the economy moving by helping to facilitate the flow and circulation of finance.

“Now with lock-down conditions easing we’re ready to help those businesses wanting to invest in their re-emergence. For some everything will have changed, and they may need to invest in new ways of operating, consider a new direction or diversify.

“Some of our customers pivoted their business during lock-down and have since discovered benefits beyond survival. Being forced to consider new ways of working or diversification has resulted in new strings to their business bow and in some instances a wider customer base.”

The £17.3m in property-backed loans has been funded entirely by FOLK2FOLK’s retail investors. With a typical interest rate of 6.5% p.a. this provides investors with a monthly supplement to their income in a time of see-sawing stock markets and low interest rates.

“If you’re an experienced investor, with money to invest and could help local businesses succeed after this national crisis while you earn a monthly income of 6.5% p.a. secured against land or property, why wouldn’t you?”


Capital at risk. No FSCS.

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