Momenta Finance secures up to £200m funding facility from Lloyds

Momenta Finance has secured a £100m senior warehouse facility from Lloyds, with an option to increase the funding by a further £100m, strengthening its capacity to provide unsecured business loans to UK SMEs.

The agreement provides the alternative lender with up to £200m of funding capacity, supporting its plans to expand lending to businesses seeking finance for working capital, investment and growth.

The facility represents a significant milestone for Momenta Finance as it continues to scale its unsecured lending operations and strengthen its funding arrangements with banking and institutional partners.

For the lender’s broker network, the additional funding will provide greater capacity to support SME clients and finance new lending opportunities.

“Securing a facility of this scale with Lloyds is an important step in supporting our growth plans, giving us the capacity to build on our underwriting and our platform.

“It means we can back many more ambitious UK businesses through our broker partners and look ahead with confidence and certainty.”

The agreement follows a period of investment in Momenta Finance’s funding platform, with the business securing more than £500m through facilities with banking and institutional partners since 2023.

The addition of Lloyds further diversifies the lender’s sources of capital, while the £100m accordion option provides flexibility to increase funding as demand for unsecured SME finance grows.

Jake Trehaeven, Capital Markets Director at Momenta Finance, said: “Bringing Lloyds on board as a lender adds real depth and diversification to our funding platform, and the accordion gives us a clear path to scale.

“It reflects the strength of our unsecured lending proposition and gives us the capacity to keep deploying capital to UK SMEs.”

The transaction also reflects Lloyds’ role in providing wholesale funding to non-bank lenders, enabling them to expand their lending activities and support businesses across the UK.

Miray Muminoglu, Head of Securitised Products Group at Lloyds, said: “We’re supporting Momenta Finance with funding to help more UK SMEs invest and grow.

“Financing established non-bank lenders is an important part of our securitisation and specialist finance business, and this transaction demonstrates how our financing expertise helps them lend to UK businesses and support the wider economy.”

The new facility provides Momenta Finance with additional funding headroom as it continues to develop its unsecured business lending proposition and expand its support for SMEs through the broker market.

It also underlines the importance of partnerships between established banks and alternative lenders in increasing the availability of finance to UK businesses.