Funding Circle US will 'cut out banks'
24 October 2013 Last updated at 11:28 BST
Funding Circle, a peer-to-peer lending company that helps small businesses that cannot, or do not want to get a loan from their banks, has been launched in America.
The UK alternative finance business will launch as Funding Circle US.
Funding Circle provides a direct link between investors and small businesses, who can borrow between £5,000 and £1m via the platform.
Samir Desai, co-founder and chief executive of Funding Circle, told the Today programme's business presenter that peer-to-peer lending is a way for small business to borrow money from lenders and "cuts out banks".
He explained peer-to-peer loans allow the lender to "spread the risk" by loaning small amounts of money to a large number of businesses.
First broadcast on BBC Radio 4's Today programme on Thursday 24 October 2013.