SME lender 365 Business Finance has raised £55m in a debt and equity raise to fund its goal of quadrupling lending over the next two years.
The London-based company, which offers revenue-based funding to small and medium-sized businesses across the UK, said demand for its merchant cash advance services has more than doubled from pre-Covid levels.
Speciality finance investment firm Kendal Capital provided funds in exchange for equity, while alternative investment management firm Pollen Street Capital invested via a debt facility.
SMEs can use 365 Business Finance’s platform to raise up to £300,000. Repayments are taken automatically from a percentage of future debit and credit card payments.
The model means that businesses can make smaller repayments when sales are down. Its customers include businesses spanning retail, hospitality, dentists and more.
“With fully automated repayments, a flexible repayments solution and service unmatched in our sector, we’ve positioned ourselves as the go-to alternative finance provider,” said Andrew Raphaely, managing director, 365 Business Finance.
“This raise will help us meet our goal of quadrupling our lending over the next two years, and to become the leading revenue-based finance provider in the UK.”
Michael Katramados, Partner, Pollen Street Capital, said, “We are delighted to build on our strong relationship with 365 and continue as their main funding partner as they embark on the next chapter of their growth. This facility aligns with our commitment to generating positive impact, with 365 Business Finance supporting SMEs across the UK with flexible finance.”
The post London’s 365 Business Finance raises £55m to quadruple SME lending appeared first on UKTN | UK Tech News |.