Funding Circle, widely regarded as one of the most successful peer-to-peer lending platforms has disclosed information signalling intent to move into the development finance and buy-to-let industry – including a major hire from one of the UK’s biggest banks.

Funding Circle, the pioneering online marketplace for business loans has hired Luke Jooste, formerly Commercial Director at Barclays Business.

Speaking to a B&C reporter, a spokesman from Funding Circle confirmed that the P2P lender is looking to become a significant player in the UK real estate finance sector, and that in order to achieve this – the platform will need to accommodate a full suite of finance requirements.

Thus, the four key areas that Funding Circle will be focussing on are:

• Property development finance

• Buy-to-let (residential investment) finance

• Commercial mortgages for trading SME's

• Commercial investment loans

Launched in August 2010, Funding Circle enables businesses to access finance independent of their banks, whilst at the same time allowing British people to earn attractive, stable returns for the long-term.

To date, more than £170 million of loans have been lent to over 3,000 small businesses across the UK, with over £100 million lent in 2013 so far.

Even the UK Government, councils and universities have signed up to lend money to businesses through the platform.
Luke brings fifteen years of experience in property finance, and will be pivotal in looking at Funding Circle’s offer in this space.

Prior to joining Funding Circle, Luke oversaw the commercial performance of Barclays Business as their Commercial Director, of which property is a major asset component. Luke also held positions as UK Head of Real Estate Finance at Barclays Business and Associate Credit Director (real estate) at Barclays Corporate.

Before his move to London in 2008, Luke worked in mortgage loans at First National Bank and as Head of Risk at the Bank of China, both in South Africa. He also has an MBA (UK) and Diploma in Corporate Finance from the University of London.

Samir Desai, CEO and co-founder of Funding Circle, said: “Given the pent up demand, particularly by small and medium sized developers, we think there is a real opportunity in the market and plan to be a significant player going forward.”

Luke Jooste, Head of Real Estate Finance at Funding Circle, said: “As a peer-to-peer lender, Funding Circle doesn’t have the legacy in real estate finance that the banks do. I believe this gives us a real advantage and look forward to enhancing lending opportunities for UK investors.”