Branson stamps name on 'friends loans' firm

Virgin is investing “tens of millions” of dollars in the private venture, said Asheesh Advani, CircleLending’s founder and chief executive, who declined to disclose a specific amount.

Mr Advani’s six-year-old company emerged alongside the “peer-to-peer” lending industry in the US, which seeks to snatch business away from banks by using the internet to match borrowers with lenders. However, unlike CircleLending, those services generally pair up strangers.

Because borrower and lender know one another, loans typically carry lower interest rates than banks offer – without the unforgiving nature institutional lenders often adopt with borrowers, Mr Advani says.

People who have already agreed to a loan come to CircleLending to work out repayment terms either online, in person or over the phone. Loan payments are electronically credited and debited to the participants’ bank accounts.

CircleLending now has £100m (€144m) in loans on its books – ranging from short-term loans for debt refinancing or other personal needs, to reverse home mortgages and small business expenses.

Mr Advani said the Virgin rebranding gives his firm a more recognisable consumer name, as well as a stronger tie to Branson, a business celebrity and founder of the Virgin brand.

In North America, the Virgin name is on everything from airlines Virgin Atlantic Airways and Virgin America to music retailer Virgin Megastores and wireless network Virgin Mobile USA.

“With the rebranding, we’ll be doing considerably more outreach to consumers, and doing it in a very Virgin-esque way,” Mr Advani said. “You’ll find the ads are cheekier than the US banking industry is used to.”

One newspaper ad suggests involving a third-party player to help broker friends-and-family loans, using the tagline, “Are you ready for a threesome?”