Lovey secures £250m credit facility from Pollen Street Capital

UK SME finance provider Lovey has secured a senior secured credit facility of up to £250m from alternative asset manager Pollen Street Capital, marking the largest funding arrangement in the company’s history.

The facility comprises £50m of committed capital and a further £200m accordion facility, providing additional funding capacity to support Lovey’s expansion in the UK SME lending market.

The agreement will enable the Birmingham-based fintech to increase its direct lending activities, offer larger loans and support more small and medium-sized businesses, while continuing to develop its established finance brokerage operations.

Founded in 2016 by CEO Jack Smith, Lovey has grown from a one-person start-up to a business employing 120 people. To date, it has provided more than £600m in loans to over 11,000 UK SMEs.

The company initially operated as a finance broker before launching its own balance-sheet lending activities in 2022. It now combines direct lending with access to a panel of funding partners, enabling businesses to access a range of commercial finance solutions.

The new facility will strengthen Lovey’s ability to provide funding to SMEs, including businesses that have traditionally faced difficulties accessing finance.

“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.

“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.”

Kai Hunter, Chief Operating Officer at Lovey, said the facility would enable the company to expand its lending capacity and support a wider range of businesses.

“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.”

Pollen Street Capital has experience financing specialist SME lenders and supporting businesses transitioning from brokerage into direct lending.

Ethan Saggu, Investment Director at Pollen Street, commented: “Lovey has spent almost a decade seeing the UK SME lending market from a broker’s perspective, giving the team an expert view of where demand for credit is going unmet.

“We have financed a number of specialist SME lenders and recognise what it takes to grow from brokerage into balance-sheet lending. Lovey has done so with a well-defined product and a focused approach, and we look forward to supporting the team as it scales.”

The agreement builds on Lovey’s existing institutional funding arrangements, including a £35m revolving credit facility from Paragon Bank and a £10m junior medium-term note programme from LGB Capital Markets, both announced in 2025.

The latest facility further diversifies Lovey’s funding base as it seeks to expand its lending operations and increase access to finance for UK SMEs.

Lovey was advised by Ashurst Perkins Coie, while Pollen Street was advised by Simmons & Simmons.