A data-driven lending firm has launched a new £300m funding plan for fintechs SMEs.
A third of the UK-based Channel Capital Advisors’ £300m shot-in-the-arm will be released immediately, City A.M. can exclusively reveal.
The fund, which has backing from global investors, will support digital lending fintech platforms that need cash to finance their loans to smaller and medium-sized firms.
Channel, which is FCA-authorised, has deployed more than $20bn over the last 15-years, giving out loans, capital facilities and securities.
It will initially be deployed in Europe and North America, with a view to moving into more diverse markets, including for corporate credit risk.
“The investment into our Fintech Lending Fund is a significant step forward for Channel” said Paul Wilson, its chief investment officer. “It will see us work closely with other digital platforms to facilitate loans for SMEs that are faster, simpler, and don’t dilute their business.”
“Indeed, the deployment of dedicated funds like this is crucial in supporting and fuelling the ongoing growth of the global SME sector”.
“The backing our fund has received underlines investors’ growing appetite within the fintech lending space.
CEO of Channel, Walter Gontarek, added: “Providing much-needed capital to the often-overlooked SME sector has always been a goal at Channel.”
“Fintech lending platforms are a critical part of that – making it faster and easier for deserving SMEs to access loans.
“We have been tirelessly enhancing our own digital lending capabilities and have exciting developments coming in that space.”
He added, “the sizeable investment into our Fintech Lending Fund will see us work with a greater number of tech-powered lending platforms, firstly in Europe and North America, to see capital deployed at pace to the global SME community.”
The identity of the investors have not been revealed.