Love Finance secures £45m debt financing to expand SME lending

Love Finance has secured £45 million in debt financing to scale its lending to small and medium-sized enterprises (SMEs) across the UK.

The package includes a £35 million revolving credit facility (RCF) from Paragon Bank and a £10 million junior medium-term note (MTN) programme arranged by LGB Capital Markets. It marks the Birmingham-based lender’s first debt financing milestone since its launch in 2016.

The new funding will allow Love Finance to lend directly from its own balance sheet, which the company said would accelerate decision-making and broaden access to capital for SMEs. Until now, the lender has operated without external debt facilities, funding growth through profits.

Love Finance has reported revenues of £9.2 million in 2024, up more than 900% over the past four years, and said it has provided over £300 million in funding to more than 7,000 UK SMEs. The company has also doubled its workforce during that period.

Jamie Pickering, co-head of structured lending at Paragon Bank, said: “Paragon’s Structured Lending division is designed to support high-growth businesses with bespoke funding solutions that enable them to scale at pace.

“Our latest partnership with Love Finance reflects this mission. By backing innovative lenders like Love Finance, we’re proud to be helping strengthen the resilience and creativity of the UK’s vibrant SME sector.”

Jack Smith, founder and chief executive of Love Finance, described the financing as a “major milestone” for the company.

“With the support of Paragon Bank and LGB Capital Markets, we can scale our own book lending, reach more SMEs across the UK, and continue driving innovation in business finance,” he said.

LGB Capital Markets director Fergus Rendall added: “Their data-driven approach to SME lending, combined with a clear vision and strong execution, makes them a standout in the market.

“This funding structure, combining Paragon’s senior facility with our MTN programme, provides a scalable and robust platform for the next phase of expansion.”

Love Finance’s loan book will be principally supported by Paragon’s RCF and LGB’s MTN programme, with additional funding provided directly by the company.