LendingCrowd raises £100m to back SMEs
LendingCrowd, the Edinburgh-based fintech SME lending platform, has closed a £100 million funding deal with Barclays bank and a large global investment firm to support SMEs.
The agreement represents the biggest capital markets deal in LendingCrowd’s eight-year history, with operations expanding and headcount growing by a third.
The funding will be delivered via the British Business Bank’s Recovery Loan Scheme (RLS), for which LendingCrowd has now been accredited as a lender, and also through its term lending product.
The Recovery Loan Scheme is designed to support access to finance for UK businesses as they recover and grow following the pandemic. Funds from the scheme can be used for any legitimate business purpose, including managing cashflow, growth and investment. It is designed to appeal to businesses that can afford to take out additional finance for these purposes.
LendingCrowd will provide RLS loans up to £500,000 over a three, four or five-year term.
Stuart Lunn, founder and CEO of LendingCrowd, said: “It is hard to imagine a more difficult business environment than the past 18-24 months, which has seen many small and medium-sized businesses severely limited in how much they can trade, and trying to operate under rapidly changing restrictions, through no fault of their own.
“Many of these SMEs are good, solid businesses that desperately need some extra support. However, there remains a significant unmet demand for business lending, particularly in the £250,000 to £500,000 space. It is crucial for businesses, and for our wider economic recovery, that this demand is properly served.”
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