Love Finance Closes £45 Million Debt Facility With Paragon Bank and LGB Capital Markets

Love Finance has closed its first dedicated debt financing arrangement, securing £45 million to expand its lending capacity to UK small and medium-sized enterprises.
 

The funding package consists of a £35 million Revolving Credit Facility from Paragon Bank, a FTSE 250 specialist lender, and a £10 million junior Medium-Term Note programme from LGB Capital Markets.
 

The arrangement marks a shift for Love Finance, which has previously relied on alternative funding structures to support its lending operations. Each loan issued by Love Finance will now be primarily backed by Paragon Bank's senior RCF and LGB Capital Markets' junior MTN programme, with the company providing the remainder.
 

Paragon's Structured Lending division has an established track record of providing senior secured funding to UK non-bank lenders seeking to scale their loan books. LGB Capital Markets specialises in delivering structured financing solutions to growth-stage financial services businesses.
 

Jack Smith, Founder and CEO of Love Finance, commented:

"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."
 

Jamie Pickering, Co-Head of Structured Lending at Paragon Bank
 

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. 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.”

Fergus Rendall, Director at LGB Capital Markets
 

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."
 
The new facility is intended to enable Love Finance to accelerate loan origination, reduce turnaround times for SME borrowers, and expand its product range across sectors.
 

Since its launch in 2016, Love Finance has facilitated over £300 million in loans to more than 7,000 SMEs across the UK.
 

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