Lovey's $323 Million Boost: What It Means for UK SMEs

Jan de Vries · 2026-10-27

Lovey, a British FinTech that specializes in lending to small and medium-sized businesses, just landed a major financial boost. The company secured a credit facility of up to €298 million (about $323 million) from Pollen Street Capital. This isn't just pocket change—it's a strong signal that investors believe in Lovey's mission to make business finance simpler and faster. The facility breaks down into two parts: €59 million (roughly $64 million) in committed capital and a €238 million (around $258 million) accordion option. That means Lovey has immediate access to the first chunk and can draw more as it scales. The goal? To expand its own-book lending—essentially, lending from its own balance sheet rather than just brokering deals. ### Why This Matters for Small Businesses If you run a small business in the UK, access to credit can be a headache. Traditional banks often take weeks to approve loans, and the paperwork can be overwhelming. Lovey aims to change that by offering a faster, more flexible alternative. With this new funding, the company can provide larger loans and reach more businesses that have struggled to get financing. Jack Smith, Lovey's founder and CEO, put it simply: *"This new facility is an important milestone for us and will enable us to put more capital behind UK small businesses, scale our own-book lending and give more SMEs access to finance when they need it."* He also emphasized that Pollen Street shares their belief that small business finance should be simpler, faster, and more flexible. ### A Growing Trend in European Lending Lovey's announcement isn't an isolated event. It's part of a broader wave of lending activity across Europe. Just this year, several other fintechs have secured significant credit facilities: - In France, Aria launched a €240 million (about $260 million) debt facility to expand invoice financing. - Lithuania's InSoil secured €120 million (around $130 million) from Pollen Street Capital to support agricultural SMEs. - In the UK, equipal announced a €17 million (roughly $18 million) forward-flow facility for equipment financing. - Consumer lender Plend obtained a facility of up to €58.3 million (about $63 million). Together with Lovey's deal, these arrangements represent approximately €733 million (nearly $795 million) in announced credit capacity. That's a lot of firepower aimed at helping small businesses grow. ### From Broker to Balance-Sheet Lender Lovey's journey is impressive. Founded in 2016 by Jack Smith, the company started as a one-person operation. Today, it's a 120-person team that has funded over €717 million (about $777 million) in loans to more than 11,000 UK SMEs. That's a lot of businesses helped. Initially, Lovey operated as a broker, connecting businesses with lenders. But in 2022, it began lending directly from its own balance sheet. This dual approach—brokerage plus direct lending—gives customers more options and a smoother experience. Kai Hunter, Lovey's COO, highlighted the collaborative effort behind the new facility: *"The funding announced today is the result of close and collaborative work with Pollen Street... This funding deepens our lending capacity and allows us to offer larger loans, so that we can back more of the UK's small and medium-sized businesses."* ### What's Next? With this new facility, Lovey is well-positioned to scale its lending operations. The company plans to offer larger loans and reach businesses that have found it hardest to secure finance. It's a win for SMEs and a sign that the fintech lending space is heating up. Ethan Saggu, Investment Director at Pollen Street, summed up the confidence in Lovey: *"Lovey has spent almost a decade seeing the UK SME lending market from a broker's perspective... We look forward to supporting the team as it scales."* For small business owners, this means more choices and potentially faster access to the capital they need to grow. And for the fintech industry, it's another example of how alternative lenders are stepping up to fill gaps left by traditional banks.