Love Finance, a UK-based lending platform, has successfully closed its inaugural debt financing deal, securing £45m to significantly expand its direct lending capabilities for small and medium-sized businesses across the United Kingdom.

The £45m package is comprised of a £35m revolving credit facility provided by Paragon Bank and a £10m junior medium-term note programme from LGB Capital Markets. This funding enables Love Finance to offer loans directly from its own balance sheet, aiming to accelerate decision-making processes and broaden access to essential business capital for SMEs.

Established in 2016, Love Finance has scaled rapidly without external equity funding, having been entirely bootstrapped since its inception. Over the past four years, the company has seen its revenues grow by more than 900%, reaching £9.2m in 2024. During this period, its workforce has doubled, and it has facilitated over £300m in funding for more than 7,000 SMEs nationwide.

Jamie Pickering, co-head of structured lending at Paragon Bank, commented on the partnership, stating, “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, which plays a vital role in driving economic prosperity and regional development.”

Jack Smith, founder and CEO of Love Finance, highlighted the significance of the deal: “Securing our first debt financing is a major milestone for Love Finance. 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. This funding brings us another step closer to our goal of being the UK’s most trusted and accessible SME lender.”