FOLK2FOLK Limited, established in 2013, is a peer-to-peer business lender linking retail and institutional investors with UK SMEs seeking secured finance backed by a first legal charge on UK land or property. It operates nationally, predominantly supporting rural and regional businesses. Its lending suits SMEs with significant property equity that may find conventional bank finance challenging. See our Folk2folk Reviews and lender overview for more information.
Key Features of FOLK2FOLK
This lender offers a variety of practical features aimed at asset-rich businesses. Their peer-to-peer model and flexible loan options address diverse financial needs while offering a straightforward application process and personalised support.
- Peer-to-peer funding connects borrowers with retail and institutional investors, offering an alternative finance option.
- Fixed simple interest rates with no early repayment or exit penalties clarify cost management, see interest rate details.
- Dedicated regional managers and local valuation partners provide personalised assistance and quicker valuation responses.
- Flexible funds usage across sectors including rural diversification examples highlights diversification.
- Digital platform for online enquiry and secure document uploads streamlines application steps, linked to our online form.
Funding Eligibility
You may qualify if your business owns UK land or property with sufficient equity to secure loans, regardless of trading history. Start-ups with adequate security are also considered. The lending covers properties in England, Scotland, and Wales. Businesses must demonstrate a viable repayment or exit strategy. See our loan eligibility guide and business plan tools for more insight.
Loan Options
FOLK2FOLK offers several secured loan types suitable for different business and property needs, ranging from £100,000 up to £10,000,000 with terms from months to years and fixed rates.
- Secured Business Loan: £100,000–£10,000,000, terms 6 months to 5 years with fixed simple interest rates from 7.50% to 9.00% p.a. Options include interest-only repayments. Refer to business loans.
- Bridging & Short-Term Loan: £100,000–£5,000,000, terms 3 to 24 months, with monthly rates between 0.75% and 1.00%, equating to approx 9%–12% p.a. Useful for quick funding needs. Details in bridging loans.
- Property Development Finance: £150,000–£10,000,000, up to 24 months, with rates from 7.50% to 9.50% p.a., interest usually rolled up. Suitable for residential or mixed-use developments. See property development finance.
- Agricultural & Land Loan: £100,000–£5,000,000, 1 to 5 years, fixed rates 7.50% to 9.00% p.a., interest-only. Supports agricultural land and diversification projects. More info at agricultural loans.
- Renewable Energy Finance: £250,000–£10,000,000, 1 to 5 years with interest-only or rolled-up interest, rates from 7.50% to 9.50% p.a. For projects like solar or wind energy. See green finance.
How to Apply
The application is online, followed by personal contact to discuss terms. Expect indicative offers within 24-48 hours and full approval typically in 5 to 10 business days. Prepare key documents for smooth processing.
- Submit an enquiry via the online form with initial details.
- Provide documentation including proof of ownership, identification, accounts, and a business plan or exit strategy, guided by our business plan agent.
- FOLK2FOLK undertakes credit and valuation checks, with funding release possible in as little as 2-3 weeks post-valuation. See more on funding timeline.
Funding Agent's view on FOLK2FOLK
FOLK2FOLK serves a specific segment of UK SMEs that have property assets but struggle to access mainstream secured finance. Its peer-to-peer approach, fixed interest pricing, and flexible product range meet the needs of asset-rich businesses and developers seeking loan amounts between £100,000 and £10 million. However, its requirement for property security and high minimum loan size means smaller or less asset-heavy businesses should consider alternative lenders. For suitable firms, it offers a compelling option. Explore our eligibility checker, business loan comparisons, and the lender review page for next steps.
