A Hampshire-based online peer-to-peer lending platform has been acquired out of administration by specialist finance provider GLI Finance.
Greg Palfrey and Steve Adshead of Smith & Williamson were appointed as administrators to Funding Knight Holdings (FKH), the holding company for FundingKnight.
Shortly after the appointment, GLI Finance agreed to acquire Funding Knight Ltd, along with FKH's other subsidiaries, Funding Knight Services and Funding Knight Corporate Services, both of which are dormant.
A cash sum of £750,000 has been paid and, as part of the terms of the deal, GLI has also committed to providing FundingKnight with at least £1m of further capital to finance its ongoing operations.
FundingKnight recorded unaudited turnover and a post-tax loss of approximately £610,000 and £1.17m respectively in the financial year to 31 March 2016.
Andy Whelan, chief executive of GLI, said: "We believe FundingKnight is a fundamentally good business with strategic value.
"By acquiring the business at a low entry price, we will help secure the continued employment of the FundingKnight team and provide reassurance to the investors in FundingKnight loans and FundingKnight's SME client base that have existing loans or are seeking to borrow.
"In the medium term, we will be seeking to maximise the potential of FundingKnight in a way which is consistent with our strategic plans."