LendingCrowd Partners with Scottish Investment Bank to Fund SME Growth
The Scottish Investment Bank and Dutch entrepreneurial bank NIBC have committed to invest more than £18 million through LendingCrowd’s platform.
The partnership will create a unique funding deal to help accelerate small and medium-sized businesses, with both banks agreeing to lend a combined total of £18.75 million across LendingCrowd’s platform.
This marks the second lending deal that the Edinburgh-based fintech has secured with SIB, following a £2.75 million commitment made in October 2016.
Funding will be made available as business loans to SMEs across the country, with LendingCrowd marketing the funds primarily to British businesses, assessing applications and distributing the finance through its platform. SMEs could expect a decision on the same day from LendingCrowd’s platform and access funds within 10 days.
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Businesses from Dundee to Dorset have benefited from loans of up to £500,000 through LendingCrowd, and the company has facilitated more than 660 loans to SMEs across the UK, totalling more than £57 million.
More than £14 million of this total has been provided to businesses in Scotland. A few of the companies to have already benefited from the platform’s loans include Summerhall Distillery, producer of Pickering’s Gin; Tag Games; and Umega Lettings.
Stuart Lunn, founder and CEO of LendingCrowd, commented: “We’ve had a record number of requests for funding from British businesses so far this year, showing that the appetite for alternative sources of finance to fund their ambitions only seems to be getting stronger.
“We’re delighted that the Scottish Investment Bank has followed up its first foray into the alternative investment market with this further commitment and that we have been joined by NIBC…There are many small businesses crying out for finance and the funding from SIB and NIBC, coupled with our strong retail investor base, will allow LendingCrowd to help even more companies fulfil their ambitions.”
Kerry Sharp, director of the Scottish Investment Bank, said: “We’re delighted to provide the loan funding to LendingCrowd, Scotland’s marketplace lender, in order to support the substantial funding from NIBC, thereby continuing our efforts to stimulate the Scottish market for alternative and innovative forms of finance.
Nick Schaffner, head of FinTech and Structured Finance UK with NIBC Bank, said the organisation is looking forward to working LendingCrowd and seeing the company continue to make a “real impact for SMEs seeking funding to realise their goals”.