Branson to begin ad push for lender

A company controlled by British entrepreneur Richard Branson, Virgin Money USA, is launching a major advertising push today behind a Waltham financial services firm in which it bought a majority stake earlier this year, executives said.

Virgin Money also will expand the services offered by its local unit, previously known as CircleLending, modeled on similar businesses that Branson operates in the United Kingdom and South Africa that offer products like credit cards and insurance plans.

In the United States, Virgin Money will start offering student loans sometime next year in addition to CircleLending's current business arranging and administering personal, business, and mortgage loans, said Asheesh Advani, Virgin Money USA's chief executive.

Advani founded CircleLending in 2001 and retained an undisclosed stake in the business after it was purchased by a Virgin-led group for $52 million this year.

The deal is a bet by Branson that he can compete with several other companies that have emerged in recent years to formalize lending arrangements between families and friends. It comes as Branson's main company, Virgin Group, studies the possible acquisition of a troubled British mortgage lender, Northern Rock PLC. Both moves show the growing financial ambitions of Branson, best known for record stores and the Virgin Atlantic airline.

He was scheduled to appear at a publicity event for Virgin Money today in Copley Square, kicking off the print and broadcast advertising blitz.

Some traditional banks offer similar loan management services only to their wealthier clients through private banking units, often involving loans of millions of dollars. In contrast, CircleLending has been growing at about 25 percent per quarter because it handles much smaller loans, Advani said.

A typical CircleLending business loan to date has been about $25,000, and the average personal loan has been around $10,000. "We're solving many of the emotional pitfalls that can come up between relatives and friends," Advani said.

In a news release, Branson described the deal as one that will bring sophisticated services to typical consumers.

"Consumers deserve to have rights when it comes to their money: the right to choose loans that fit their needs, the right to use money to help loved ones, and the right to a brilliant deal," Branson said.

Executives declined to disclose how much they plan to invest in the business or their expansion targets, but the new organization will receive a major print advertising campaign soon.

This would provide a boost against competitors who offer similar arrangements either between people who know each other or people who are matched online, such as Prosper.com, Lendingclub.com, and Lendingtree.com.

CircleLending administers about $200 million in loans and has 30 employees in Waltham. Advani said it will have about 60 employees within a year as it adds new services.

It charges $99 to arrange a personal loan and $199 to arrange a business loan.

The mortgages it arranges tend to be 2 to 3 percent cheaper than what consumers might get from a commercial broker, Advani said.

Ross Kerber can be reached at kerber@globe.com.