- Paragon Bank (£35m) and LGB Capital Markets (£10m) back the company’s first debt financing milestone
Love Finance, the UK’s fastest-growing SME lender and broker, has announced it has secured £45 million in its first debt financing deal to expand its loan book and provide more small and medium-sized businesses in the UK with rapid and flexible access to capital. The package consists of a £35 million Revolving Credit Facility (RCF) from FTSE 250 specialist lender Paragon Bank and a £10 million junior Medium-Term Note (MTN) programme from LGB Capital Markets.
This landmark arrangement enables Love Finance to lend directly from its own balance sheet, streamlining decision-making processes and widening access to vital capital for SMEs nationwide. Founded in 2016 as a fully bootstrapped and profitable business, Love Finance has grown revenue by over 900% in the past four years, reaching £9.2 million in 2024, while doubling its workforce and providing more than £300 million in funding to over 7,000 SMEs across the country.
Each loan will be primarily underpinned by Paragon Bank’s senior RCF and LGB Capital Markets’ junior MTN programme. Paragon’s Structured Lending division, which specialises in senior secured funding to help UK non-bank lenders scale their operations, and LGB, recognised for its innovative financing solutions, jointly support Love Finance’s lending efforts. The remainder of the lending capital will be provided by Love Finance itself, giving the company added flexibility and control to shape loans around the needs of SME clients.
Jamie Pickering, Co-Head of Structured Lending at Paragon Bank, said:
“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, said:
“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.”
Fergus Rendall, Director at LGB Capital Markets, said:
“We’re delighted to be supporting Love Finance at such a pivotal stage in their growth. Their data-driven approach to SME lending, combined with a clear vision and strong execution, makes them a standout in the market. This funding structure, combining Paragon’s senior facility with our MTN programme, provides a scalable and robust platform for the next phase of expansion. We look forward to seeing the business continue to go from strength to strength.”
The new debt facility reflects solid institutional confidence in Love Finance’s growth strategy and financial performance. It underscores the company’s commitment to enabling more SMEs across the UK to access fast, flexible finance to expand and thrive.
