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- Lovey secured a senior secured credit facility of up to £250 mn from Pollen Street Capital, comprising £50 mn in committed funding and a £200 mn accordion.
- The UK fintech has provided more than £600 mn in loans to over 11,000 SMEs since its founding in 2016 and has expanded to 120 employees.
- The financing will support larger business loans, increased direct lending capacity and continued growth of Lovey’s SME finance brokerage services.
UK financial technology company Lovey has agreed to a senior secured credit facility of up to £250 mn with alternative asset manager Pollen Street Capital, securing its largest funding arrangement to date as it expands lending to small and medium-sized enterprises (SMEs).
The facility comprises £50 mn in committed capital and a £200 mn accordion that provides capacity for additional funding. The agreement will allow Lovey to increase lending from its own balance sheet while continuing to develop its established business finance brokerage operations.
The financing follows the company’s expansion in the UK SME lending market, where it combines direct loans with access to financing from third-party lenders.
Founded in 2016 by Jack Smith, Lovey has grown from a one-person startup to a business employing 120 people. It has funded more than £600 mn in loans to over 11,000 UK SMEs.
The new facility will provide additional capital to support that growth, enabling the company to serve more businesses seeking faster and more flexible access to finance.
Lovey expands direct SME lending with Pollen Street funding
Lovey began lending directly from its own balance sheet in 2022, following several years operating as a business finance broker.
The company now combines its own lending products with financing options offered through a wider panel of funding partners. This model allows it to match SMEs with different sources of capital according to their borrowing requirements.
The Pollen Street facility will increase Lovey’s capacity to originate and retain loans on its own book, including larger financing arrangements.
“This new facility is an important milestone for us and will enable us to put more capital behind UK small businesses, scale our own-book lending and give more SMEs access to finance when they need it,” said Jack Smith, founder and CEO of Lovey.
Pollen Street shares our belief that finances for small businesses should be simpler, faster and more flexible, and we’re really pleased to have them backing Lovey for this next stage of growth.
Jack Smith, founder and CEO of Lovey
The agreement also provides Lovey with additional financing capacity to serve businesses across different stages of development, including SMEs that have previously struggled to obtain funding.
Lovey targets larger business loans and increased lending capacity
The facility represents a further expansion of Lovey’s direct lending strategy, supported by institutional capital alongside its existing brokerage business.
The company intends to use the additional capacity to offer larger loans and improve funding availability for both established businesses and SMEs facing difficulties accessing traditional finance.
The funding announced today is the result of close and collaborative work with Pollen Street and I am grateful to their team, and to our own, for the diligence they brought to it.
Kai Hunter, chief operating officer at Lovey
“This funding deepens our lending capacity and allows us to offer larger loans, so that we can back more of the UK’s small and medium-sized businesses, from those that have found finance hardest to secure to the well-established, with greater speed and certainty.”
The agreement strengthens Lovey’s funding arrangements as it continues expanding its own-book lending operations alongside its brokerage services, with the £200 mn accordion providing scope to increase the facility beyond the initial £50 mn commitment.
