Funding Circle’s revenues this year will be nearly half of what it expected, the fintech giant announced today.
Shares slumped a quarter in early trading, falling 40.80 to 122.20.
The company blamed “uncertain economic outlook” for a reduced demand for its loans from small firms.
Mark Collings, Chief Commercial Officer of the debt finance platform, Code Investing said, “Demand from smaller businesses is clearly suffering in the current political and economic climate.
“For smaller firms, it’s hard to commit to the future when you haven’t got the faintest what it holds.
“We’ve known for some time that smaller firms have been avoiding the high street but news that the alternative lenders they relate to are also feeling the squeeze underlines the extent of the doubt in many business owners’ minds.
“However, demand from medium-sized businesses, in our experience, is significantly more robust.
“Established businesses with track records and greater financial strength are proving much more active and are moving ahead with their growth plans in a way that smaller businesses are not.
“Their greater financial resilience means they are able to take a medium- to long-term view.
“Being a medium-sized firm also opens up a whole new funding line in the form of institutional lenders, who are increasingly targeting SMEs in areas the high street banks fear to tread.”