Spotcap launches in the UK
(3 November 2016 – United Kingdom) Online lender Spotcap is expanding into the UK market, targeting small and medium-sized enterprises (SMEs) with financing solutions.
According to the German based firm, it uses a “unique, proprietary credit algorithm which provides deep insight into the financial condition of a business, enabling quick, sound decisions.”
“Our goal is to enable SMEs to embrace growth opportunities. We do this by offering our credit lines to SMEs in markets that need alternative funding solutions. We already operate in Spain, Australia, and the Netherlands. The expansion into the UK is an important milestone for us that reinforces our commitment to the wider SME community,” explains Jens Woloszczak, CEO and founder of Spotcap.
According to the lender, it has issued more than €50 million in credit lines to small businesses over the past two years.
The fintech has raised €63.5 million in equity and debt funding and counts more than 5,000 completed applications in Spain, the Netherlands and Australia.
Niels Turfboer will lead Spotcap’s UK operations. He has nearly 20 years of experience in European banking and business finance.
“Spotcap understands Britain is 'open for business.' We believe that the underlying economic dynamics of the UK economy are unchanged and that SMEs will need capital to make the most of opportunities in turbulent, post-Brexit times. We look forward to working with them to maintain Britain's strong entrepreneurial and creative prowess,” adds Woloszczak.
The move follows a new bank referral scheme that has officially started in the UK. Reports indicate that the program requires traditional banks to refer small businesses to alternative lenders if they’re rejected for a loan has begun.
“A refusal from a big bank should not be the end of the line for a small business and, thanks to the finance platforms being launched today, now it won’t be,” said Chancellor Philip Hammond in a statement.
According to the UK Treasury, last year, 26 percent of the 324,000 SMEs that applied for a bank loan saw their initial applications turned down. Just 3 percent of those denied said they turned to alternative options to access the finance.
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