The SME finance platform’s institutional loans, which start at £500,000 – capped at £5m and available to all firms across all sectors – are being targeted by established SMEs seeking growth capital.
The loans are being provided in the form of structured and asset finance, hire purchase and leasing agreements, bridging facilities, cash flow and unsecured loans.
Code Investing believes that SMEs and commercial brokers are starting to discover the benefits of institutional loans, which include lower arrangement fees, longer loan terms and fast completion times.
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"It can be difficult to get your head around at first, but some of the nimblest business lenders out there right now are some of the world's biggest financial institutions,” said Ayan Mitra, CEO at Code Investing (pictured above).
“In the wake of the global financial crisis, we saw the emergence of challenger banks and alternative finance providers and we're now going full circle, as major institutional investors muscle in on the SME finance market with loan rates starting from as little as 4%.
“While banks will tend to dominate the upper end of the mid-market arena, and alternative finance providers the lower end, institutional lenders are increasingly filling the space in between.
“It's a development that all commercial brokers, business advisers and accountants need to have on their radars.”