Funding deal for small firms
LendingCrowd in SME loans tie-up with SIB and NIBC
Stuart Lunn: ‘record requests’
LendingCrowd has announced a funding partnership with the Scottish Investment Bank and Dutch entrepreneurial institution NIBC to support SMEs.
NIBC and SIB will provide a combined £18.75 million across LendingCrowd’s platform in the second lending deal that it has agreed with SIB, the first being the £2.75 million commitment it made in October 2016.
This new investment comes after LendingCrowd was selected this year by government-backed Tech Nation for its Upscale 4.0 programme for high-growth UK tech companies. Among its clients are Summerhall Distillery, producer of Pickering’s Gin, Tag Games and Umega Lettings.
Stuart Lunn, founder and CEO of LendingCrowd, commented: “We’ve had a record number of requests for funding from British businesses so far this year, showing that the appetite for alternative sources of finance to fund their ambitions only seems to be getting stronger.
“We are delighted that the Scottish Investment Bank has followed up its first foray into the alternative investment market with this further commitment, and that we have been joined by NIBC, which sees the potential of LendingCrowd and our proven ability to distribute its considerable funding to UK businesses. Going through the due diligence on a deal like this has really shown the strength of our team in building an institutional class lending business.
“There are many small businesses crying out for finance and the funding from SIB and NIBC, coupled with our strong retail investor base, will allow LendingCrowd to help even more companies fulfil their ambitions.”
Kerry Sharp, director of the Scottish Investment Bank, said: “Having worked with LendingCrowd since 2016, we are delighted they have successfully grown their alternative funding operations to attract significant international funding, increasing and broadening the supply of capital to our SMEs – a great example of SIB’s wide and varied role in enhancing Scotland’s access to finance.”
Nils Schaffner, head of finTech and structured finance UK, NIBC Bank, added: “NIBC Bank has partnered with Fintech companies across our core geographies, including Iwoca, Ebury, and OakNorth in the UK, and we are delighted to support LendingCrowd in their growth ambition.”
Sigma raises funds for PRS
Sigma Capital Group, the Edinburgh-based provider of funding for the private rented housing sector (PRS), said yesterday that its wholly owned subsidiary, Sigma PRS Management, has secured a further £200 million of debt facilities for PRS REIT.
Sigma PRS acts as PRS REIT’s investment adviser. PRS REIT said the facility was secured with Lloyds Bank and Scottish Widows.
The total gross balance of deployable funds available to PRS REIT now stands at £900m. PRS REIT said these funds are already committed to development sites which, when completed, are expected to result in a portfolio of about 5,600 new rental homes.