London fintech firm provides £400m of debt finance for COVID-affected SMEs

A London fintech investment firm has provided a £400m funding line to an accredited Covid lender.

Fintex Capital, the fintech investment firm dedicated to alternative credit, has provided the multi-million pound funding to ThinCats as part of its lending to Covid-affected SMEs.

ThinCats, a UK alternative debt provider to mid-sized SMEs, initially used Fintex Capital’s funding line to support businesses as an accredited lender under the Coronavirus Business Interruption Loan Scheme (CBILS).

Following ThinCats’ recent further accreditation by the British Business Bank, this funding line will also support ThinCats providing SME loans under the Recovery Loan Scheme (RLS), the successor scheme to CBILS.

Fintex Capital’s mezzanine financing, alongside senior funding and ThinCats equity could reach £400m of funding to UK SMEs.

The mezzanine funding line was financed by Fintex Capital’s discretionary investment funds.

Ravi Anand, managing director of ThinCats, said: “Fintex continues to be an excellent funding partner for us. Their team’s thorough understanding of the specialist lending market has been of real benefit to our partnership.

“Extending the funding line to include RLS loans will enable us to support more mid-sized SMEs as the UK economy continues to recover from the impacts of the pandemic.

“The loan size and flexibility allowed under RLS will be welcomed by businesses looking to grow organically or through acquisition.”

Robert Stafler, CEO of Fintex Capital, added: “Fintex and ThinCats have a lot in common.

“Both firms value speedy decision-making and flexibility, as well as careful implementation and disciplined lending.

“As an active fintech lender we are delighted to work with ThinCats to support mid-sized SMEs, the lifeblood of the British economy, to access the finance they need and deserve.”

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