SME lender Fleximize has secured a £16.3m financing facility from specialist investment fund Hadrian’s Wall Secured Investments.
The UK company offers financing to SMEs based on their revenue and claims to have grown its lending by 132% between 2015 and 2016 to hit £40m.
Instead of offering loans at a fixed interest rate or demand capital repayments, Fleximize allows businesses to pay an agreed percentage of their revenue each month.
Companies can borrow up to £250,000 on an unsecured basis and £500,000 on a secured basis with the company aiming to lend more than £100m to SMEs by 2019.
Fleximize will use the capital to increase its lending capacity as well as diversify its product offering and making additional hires.
Company co-founder and managing partner Peter Tuvey said: “It’s been an incredibly positive start to 2017 for Fleximize, with our lending to SMEs in all sectors growing at a substantial rate.
“This additional access to funding will fuel our capability to support businesses requiring capital in an unpredictable economic climate, while allowing us to expand our excellent team.
“We’ve already made a number of key hires this year, including former HSBC and Aldermore senior manager Craig Farmer as chief risk officer, and we are looking to increase our headcount further in the coming months.â€
Hadrian’s Wall chief executive Marc Bajer commented: “We’ve been impressed by Fleximize’s growth over the past three years. It is rare to find such a focused and technology-enabled lender in the SME alternative finance sector.
“We were impressed with the commitment to transparency with its customers. We look forward to working closely with Peter and the team, and supporting the company on the next stage of its exciting journey.â€
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