Funding Circle Holdings Plc · LSE:FCH
Funding Circle — Investor Day (June 2025)
35 slides from Funding Circle's investor day presentation, June 2025
Slide 1: Capital Markets Day June 2025
Capital Markets Day June 2025
Slide 2: Welcome
Welcome Lisa Jacobs Chief Executive Officer 2
Slide 3: The UK's leading online SME lender
The UKʼs leading online SME lender Platform Customers & brand capabilities SMEs across the UK Unique tech and credit: ● 10 years trading ● Proprietary tech platform ● 7 employees ● AI powered risk models ● £1 million in revenue ● 15 yrs of data Customer NPS of 79 Funding Products Capital light fundi
Slide 4: Leading UK online SME finance platform with attractive growth and profitability
Leading UK online SME finance platform with attractive growth and profitability Large and FY2024 Pay later Monthly underserved market Credit extended £1.9bn 47% YoY Revenue £160m 23% YoY Data & tech competitive advantage PBT £3.4m FY 2026 Delivering superior Revenue > £200m customer experience
Slide 5: Our customers, brand and term loans
Our customers, brand and term loans Alexander Allen Term Loans MD & Chief Customer Officer 5
Slide 6: Large addressable market across our full product suite
Large addressable market across our full product suite Supporting underserved UK SMEs to fuel jobs and economic growth Borrow Pay later & spend 5.4m SMEs in the UK £1.3trn SME B2B payments £84bn+ £80bn+ SME debt SME card origination transactions market A significant growth opportunity as we continu
Slide 7: Best known brand for SME lending outside of the high street banks
Best known brand for SME lending outside of the high street banks, with leading customer NPS 79 Why did you choose FC for your Unprompted Brand Awareness excl main finance needs? NPS = 79 high street banks, February 20241 1. Source: 1 Funding Circle Brand Tracker. February 2024 502 respondents
Slide 8: Premiership Rugby sponsorship driving brand engagement
This has been supported by sponsorship of Premiership Rugby, driving brand engagement Video content hitting 20m views Brand ambassador 2023/2024
Slide 9: We go-to-market direct to SMEs and via intermediaries
We go-to-market direct to SMEs and via intermediaries; performance marketing is via direct mail, online and email Direct to customer Intermediaries NACFB Unsecured Funder of the Year 2019, 2020, 2021, 2022, 2023, 2024
Slide 10: Multi-product offering enables SMEs to borrow, pay later and spend
Our multi-product offering enables SMEs to borrow, pay later and spend, powered by proprietary technology Borrow Pay later Spend Term Loan FlexiPay Line of Credit Cashback Credit Card Loan for long term investment purposes to Flexible line of credit for paying bills, Cashback credit card for support
Slide 11: Borrow: market leading Term Loan for investment and working capital
Borrow: market leading Term Loan for investment and working capital Loans to support business growth or long-term cash flow management. Loan size of £10,000 to £750,000 (average about £75K Available from six months to six years. Amortises monthly, repayable anytime with no fee Use cases: long-term i
Slide 12: Growing our Term Loan products over the last 15 years
Growing our Term Loan products over the last 15 years, continuing to innovate and adapt to serve more SMEs Shorter Term Loans GGS Expanded to £750K Credit Builder Term Loans Debenture Loans Marketplace GGS Term Loans (to £750K Accredited BBLS and Debenture Loans CBILS provider Credit Builder Market
Slide 13: Our Term Loan products serve a range of customer needs
Our Term Loan products serve a range of customer needs enabling us to support even more SMEs Asset Finance Investment & Working Capital (via Marketplace)
Slide 14: FlexiPay & Credit Card businesses
FlexiPay & Credit Card businesses Jerome Fernandez FlexiPay and Credit Card MD 14
Slide 15: We have evolved our products to help our SME customers solve their problems
We have evolved our products to help our SME customers solve their problems Pay and spend £492m Unified FlexiPay experience spend 2024 Card beta launch Test launch Mobile / Web app One Line of Credit Card Payments Invoice Payments Card Payments Invoice Payments 2023 Invoice Payments Pay: FlexiPay 20
Slide 16: Pay Later: FlexiPay, empowering our customers to pay on their terms
Pay Later: FlexiPay, empowering our customers to pay on their terms Pay by card, transfer funds to a supplier or drawdown straight into a business bank account. Avg. credit limit of £16k Repayments available across 1, 3, 6, 9 or 12 monthly instalments A simple, flat fee per transaction starting fro
Slide 17: Simple, fast and easy: how FlexiPay works
Simple, fast and easy: how FlexiPay works “ FlexiPay is a brilliant idea which will help bridge the gap between supplier payments and to negotiate better with my suppliers. The application was simple and easy. “ Itʼs a great back up when there is a large outgoing like VAT to pay. It helps us to pay
Slide 18: Spend: Cashback Credit Card enabling SMEs to earn whilst they spend
Spend: Cashback Credit Card enabling SMEs to earn whilst they spend APRs starting from 14.9%. No interest for up to 42 days. Avg. credit limit of £15k Earn up to £2,000 with 2% for the first 6 months, plus 1% uncapped cashback on everything you spend after that Zero monthly fees, no hidden costs an
Slide 19: And we are really just getting started
And we are really just getting started We are solving The opportunity is vast And our customers love it a meaningful problem Customers demonstrate sticky, repeat behaviour 2 out of 3 End of month balances by cohort £1.3trn SMEs SME B2B payments £80bn say cash flow is SME card spend their biggest is
Slide 20: How we underwrite and manage credit risk
How we underwrite and manage credit risk Belkacem Krimi Chief Risk Officer 20
Slide 21: How we risk assess businesses using advanced analytics and in-house expertise
How we risk assess businesses using advanced analytics and in-house expertise 6 minutes 77% instant decision Remaining applications Combination of algorithmic and Online application Algorithmic credit risk assessment expert credit assessment Data set Data set Data set Internal Performance Alternativ
Slide 22: Competitive edge driven by rich proprietary data, credit risk expertise
Competitive edge driven by rich proprietary data, credit risk expertise and continued model evolution Our risk analytics delivers a competitive edge ● 15 years of public & proprietary data ● Predictive AI (machine learning) tools and approaches ● Experienced credit risk team ● Data gets richer every
Slide 23: Our models deliver 3x better risk discrimination than the bureau score
Our models deliver 3x better risk discrimination than the bureau score Default rates (by quintiles) Risk Band Bureau Funding Circle • Compared to the UK bureau score, Highest Risk our model achieves 3 times greater 1 10.8% 14.4% separation between low- and high-risk borrowers 2 8.8% 8.5% differentia
Slide 24: Well positioned to weather cycles and deliver positive through the cycle returns
Well positioned to weather cycles and deliver positive through the cycle returns to investors Higher than historic peaks of And we have strong portfolio Our loss coverage is 2.5x business insolvency * management in place Net Losses Net Returns Advanced portfolio monitoring & stress-testing 2.5x Sk
Slide 25: Track record of delivering robust and attractive loan returns
Track record of delivering robust and attractive loan returns 5% Annualised net returns, above cost of capital, to institutional investors £2.1bn Future funding in place (as of March 2025 1 Annualised net returns by cohort after servicing fees and bad debt Two year weighted average swap rate ¹ Yea
Slide 26: Technology, Data & AI
Technology, Data & AI Greig McEwan Chief Technology Officer 26
Slide 27: Our proprietary Technology & Data platform has been built for speed, ease and scale
Our proprietary Technology & Data platform has been built for speed, ease and scale Highly flexible front end Versatile, modular platform AI Powered risk models Scalable and secure cloud Proprietary data and models Multi-product infrastructure Delivering speed and ease for our customers Designed to
Slide 28: Continuous focus on delivering a superior customer experience
Continuous focus on delivering a superior customer experience and enabling faster access to funds FlexiPay & Credit Card Term Loans 2x increase 30 mins Ensuring Borrowers get their money faster FlexiPay & Credit Card FlexiPay record from ● Post offer check automation applications processed applicati
Slide 29: We are using GenAI to improve productivity and drive innovation
We are using GenAI to improve productivity, enhance customer experience and drive innovation Enhance customer Improve efficiency and Foster business and experience enhance productivity product innovation Live Live Live Customer sentiment analysis Co-pilot for Product and feature Software Engineering
Slide 30: Protecting Funding Circle and Customer data
Protecting Funding Circle and Customer data in an ever evolving threat landscape ● Comprehensive multi-layered protection ● Internal expertise ● 24h Security Operations Centre SOC ● Industry leading tooling ● Security awareness programme ● Continuous threat landscape monitoring ● Robust and proact
Slide 31: The view from the debt investor
The view from the debt investor Dipesh Mehta Chief Capital Officer 31
Slide 32: Capital light funding model
Capital light funding model Funders UK Small Businesses Institutional Investors ● 96% of LuM ● Fund Term Loans £15bn ● £2.1bn future funding in place Credit Extended to UK Small businesses Funding Circle since 2010 ● 4% of LuM £2.8bn Loans and Balances ● Funds FlexiPay and Under Management Term Loa
Slide 33: A strong track record in delivering investor returns
A strong track record in delivering investor returns Strong investor brand with Over 150 institutional investors Facilitated 9 public extensive experience structuring have supported the funding of securitisations on behalf of & executing transactions UK SMEs v investors totaling almost £2.2bn 2010 2
Slide 34: Key messages
Key messages • Great customer experience and brand awareness with a differentiated product offering • Product innovation and growth in large markets • Unique technology and credit assessment capabilities that continually learn and evolve • Attractive and resilient investor returns with a strong fund
Slide 35: Thank you.
Thank you. Business finance that backs you