Lovey secures up to £250 million for UK SME lending

By Nathan Brooks

Lovey has secured a senior secured credit facility of up to £250 million from Pollen Street Capital, comprising £50 million in committed capital and an additional £200 million accordion feature. The Birmingham-based financial technology company specializes in small and medium-sized business lending. Lovey described the deal as the largest financing arrangement in its history.

Lovey said the facility will expand its direct lending while the company continues offering financing brokerage services to UK businesses. It also expects the capital to support larger loan sizes and serve businesses that struggle to obtain funding through conventional channels.

Jack Smith, founder and CEO of Lovey, said:

“This new facility is an important milestone for us and will enable us to put more capital behind UK small businesses, scale our own-book lending and give more SMEs access to finance when they need it.”

“Pollen Street shares our belief that finances for small businesses should be simpler, faster and more flexible, and we’re really pleased to have them backing Lovey for this next stage of growth.”

According to Pollen Street Capital, the alternative asset manager manages more than €9 billion in assets across private equity and credit investment strategies. It focuses on financial and business services investments and has experience financing specialist lending businesses.

Pollen Street said its investors include pension funds, insurers, sovereign wealth funds, endowments, foundations, asset managers, banks and family offices.

Ethan Saggu, investment director at Pollen Street Capital, said:

“Lovey has spent almost a decade seeing the UK SME lending market from a broker’s perspective, giving the team an expert view of where demand for credit is going unmet.”

“We have financed a number of specialist SME lenders and recognise what it takes to grow from brokerage into balance-sheet lending.”

“Lovey has done so with a well-defined product and a focused approach, and we look forward to supporting the team as it scales.”

What does this change for UK small businesses?

The practical opportunity for UK small businesses is access to larger Lovey-funded loans, including for firms that struggle to obtain funding through conventional channels. Lovey expects the new capacity to accelerate direct lending while its brokerage operation continues to provide external financing options.

Lovey says SMEs frequently require access to working capital for equipment purchases, inventory, hiring, expansion and other operational needs. The company says it simplifies the application process and tailors financing options to each borrower’s requirements.

Kai Hunter, chief operating officer of Lovey, said:

“The funding announced today is the result of close and collaborative work with Pollen Street and I am grateful to their team, and to our own, for the diligence they brought to it.”

“This funding deepens our lending capacity and allows us to offer larger loans, so that we can back more of the UK’s small and medium-sized businesses, from those that have found finance hardest to secure to the well-established, with greater speed and certainty.”

From brokerage to balance-sheet lending

According to Lovey, it was founded in 2016 by Jack Smith as a one-person startup. It has grown into a financial services company employing approximately 120 people. Since launch, Lovey said it has facilitated more than £600 million in loans to over 11,000 UK small and medium-sized enterprises.

Lovey initially built its business around financing brokerage, helping companies access funding from third-party lenders. In 2022, it began making loans directly from its own balance sheet, expanding beyond traditional brokerage.

Today, Lovey combines direct lending with access to a broader network of financing partners. The company says it evaluates customer borrowing requirements and can offer financing through its own lending products or external providers.

Lovey intends the Pollen Street facility to increase lending capacity and support larger loan sizes. The company also said the agreement strengthens institutional funding relationships and expands its ability to support future loan originations.

The agreement follows financing arrangements announced in 2025, including a £35 million revolving credit facility from Paragon Bank. Lovey also disclosed a £10 million junior medium-term note program arranged through LGB Capital Markets.

According to Lovey and Pollen Street Capital, Lovey was advised by Ashurst and Perkins Coie. Pollen Street received legal advice from Simmons & Simmons.

Lovey plans to accelerate direct lending and expand financing access for UK small businesses. Pollen Street expects to support that scale. For borrowers, success means larger loans delivered with greater speed and certainty, the benefits Lovey’s executives explicitly targeted.