The debt financing arrangement comprises a £35m revolving credit facility from Paragon and a £10m junior medium-term note (MTN) programme from LGB Capital Markets.
Each loan will be principally supported by Paragon Bank’s senior RVF and LGB Capital Markets, and the remainder will be provided by the company itself, Love Finance said.
The funding arrangement will allow Love Finance to lend directly from its own book, in turn “accelerating decision-making and widening access to essential capital for SMEs”.
Love Finance was launched in 2016 and grew its revenue to £9.2m in 2024 and offered £300m in funding to over 7,000 SMEs across the UK.
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.
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“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, added: “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.”
