Lovey Secures £250 Million Pollen Street Facility to Expand UK SME Lending

UK fintech Lovey has secured a senior secured credit facility of up to £250 million from Pollen Street Capital, strengthening its capacity to lend directly to small businesses and expand access to finance.

UK SME lender Lovey has secured a credit facility of up to £250 million from alternative asset manager Pollen Street Capital. The deal marks the largest funding line in Lovey’s history and supports its plans to expand lending to small and medium-sized enterprises (SMEs) across the UK.

The facility comprises £50 million in committed capital and a £200 million accordion. This structure gives Lovey an initial committed funding base, with additional capacity available through the accordion, subject to its terms.

The funding will support Lovey’s balance-sheet lending business while the company continues to develop its brokerage operations. The move comes as the fintech seeks to serve more businesses that need access to credit.

How the £250 Million Facility Will Support Lovey

The agreement gives Lovey additional capacity to fund loans directly from its own balance sheet. It can also support the company’s efforts to offer larger loans to UK businesses.

However, the headline figure requires context. The facility includes £50 million in committed capital, while the remaining £200 million is an accordion rather than an equivalent amount of immediately committed funding.

Lovey has not disclosed how quickly it expects to draw on the facility or how much additional lending the arrangement will generate.

For the company, the agreement provides room to expand its lending operations. It also brings backing from an institutional investor with experience in specialist lending and private credit.

Jack Smith, founder and CEO of Lovey, said the facility would help the company put more capital behind UK small businesses. He added that the funding would support the expansion of its own-book lending and give more SMEs access to finance.

From Loan Brokerage to Direct SME Lending

Founded by Jack Smith in 2016, Lovey has developed from a one-person operation into a business employing 120 people.

The company says it has provided more than £600 million in loans to over 11,000 SMEs across the UK. Its target customers include businesses seeking faster and more flexible access to funding.

Lovey entered direct lending in 2022, building on its earlier experience as a broker. The company now combines two models: lending directly to businesses and connecting borrowers with funding through a network of lending partners.

This combination gives Lovey more than one way to serve customers. Businesses may borrow directly from the company or access finance through its brokerage network, depending on their needs and available options.

Lovey says businesses can submit an inquiry in 60 seconds and may receive funds within four hours. These are company-stated service claims, rather than independently verified performance figures.

The shift towards balance-sheet lending is important because it changes how Lovey funds its growth. Brokerage allows a lender to connect borrowers with external providers, while direct lending requires capital and funding arrangements to support loans held on its own books.

The new facility is designed to strengthen that second model without requiring Lovey to abandon its existing brokerage business.

Why Specialist Funding Matters for UK SMEs

Small businesses often need finance to manage cash flow, purchase equipment, recruit staff, or support expansion. Yet the availability, cost, and speed of credit can vary according to a company’s financial profile and the lender’s requirements.

Specialist lenders seek to address parts of this market by offering products and processes tailored to business borrowers.

Lovey’s experience as a broker has given it exposure to businesses seeking credit through different funding channels. The company is now using that experience alongside direct lending to increase its capacity.

Still, more funding does not automatically mean cheaper loans or broader access for every business. The impact will depend on Lovey’s lending criteria, pricing, underwriting decisions, and the types of borrowers it chooses to support.

For SMEs, the key question is whether additional lending capacity translates into suitable finance for businesses that need it. The announcement does not disclose expected loan volumes, interest rates, or the number of additional borrowers the facility could support.

Pollen Street Adds to Lovey’s Funding Base

The new facility follows earlier funding arrangements, including a £35 million revolving credit facility from Paragon Bank and a £10 million junior medium-term note programme from LGB Capital Markets, both announced in the previous year.

Together, these arrangements form part of Lovey’s broader funding strategy as it grows its lending operations.

Pollen Street, founded in 2013, manages more than €9 billion across private equity and credit strategies and employs over 100 professionals.

Ethan Saggu, investment director at Pollen Street, said Lovey’s experience in the SME lending market had helped the company identify unmet demand for credit. He also pointed to its development from brokerage into balance-sheet lending.

Kai Hunter, Lovey’s chief operating officer, said the new funding would deepen lending capacity and allow the company to offer larger loans. He described the transaction as the result of close collaboration between the two organizations.

Ashurst Perkins Coie advised Lovey on the transaction, while Simmons & Simmons represented Pollen Street.

What the Deal Means for Lovey’s Growth

The facility gives Lovey another source of funding as it seeks to scale its direct lending business. Its combination of brokerage and balance-sheet lending also provides flexibility in how it connects businesses with finance.

The next stage will depend on how effectively the company deploys the available capital, manages credit risk, and maintains access to funding as its loan book grows.

The distinction between committed capital and the accordion will also matter when assessing the facility’s actual contribution to lending capacity. The full £250 million headline should not be treated as £250 million of immediately committed funding.

For the UK SME finance market, the transaction highlights the role specialist lenders and private credit investors can play in financing small businesses.

Lovey now has additional capacity to pursue that opportunity. Its longer-term impact will be measured not simply by the size of the facility but by how much suitable credit reaches businesses and how sustainably the lender manages its expansion.

Lovey secures £250m Pollen Street facility for SME lending

Alternative Lendingbalance-sheet lendingBusiness Financebusiness loansCredit Facilitydirect lendingfintech fundingLoveyParagon BankPollen Street Capitalprivate creditsmall business financeSME lendingUK fintechUK SMEs