Funding Circle, Nationwide Launch Partnership to Assist Small Businesses
Small business lender Funding Circle and popular insurance company Nationwide are teaming up. Billed as the first collaboration between an online lender and leading property and casualty insurer, the two companies are aiming to increase access to financing and resources for small business owners. As a result of the partnership, business owners will be able to apply for access to capital through Funding Circle as well as apply for insurance from Nationwide using each other’s sites. Plus, the two companies will also provide business owners with additional resources regarding payroll, software, and more.
This partnership comes as many business owners are still feeling the impacts of the pandemic. In fact, a survey by Funding Circle found that 72% of small businesses surveyed said they’d likely need financing within the next 12 months. Meanwhile, some of the other challenges noted by respondents included covering overhead expenses (36%), paying off debt (31%), and keeping up with demand).
Commenting on the partnership and how it will benefit small businesses, Nationwide’s Associate VP of Commercial Digital Enablement Kasey Ketcham said, “Today’s hardworking business owners have a variety of insurance and financial needs. They are looking for innovative ways to have those needs met so they can focus on running their companies. This partnership with Funding Circle is another example of Nationwide’s commitment to addressing the challenges small business owners are facing – offering expert guidance and comprehensive insurance and lending resources hand-in-hand to help them make informed decisions to fortify their business and livelihoods.”
Funding Circle US’s managing director Vipul Chhabra added, “Funding Circle is thrilled to partner with Nationwide to offer essential resources that seamlessly supplement our customers’ business needs and set them up for success in a competitive market. This first-of-its-kind partnership with one of the country’s leading insurance and financial services providers embodies our core values: to truly support American small business owners in accomplishing their goals, especially among underserved populations that banks typically are not incentivized to reach.”
At this time, it seems as though the partnership between Funding Circle and Nationwide is fairly surface level. However, there are plenty of opportunities for the two businesses to further integrate their services going forward. Similarly, the “Solutions Centers” on each company’s site could eventually house resources from several other partner brands, potentially providing small businesses a “one-stop shop” destination. In the meantime, hopefully both Funding Circle and Nationwide will be able to fulfill their goals and bring much needed relief to small business owners.