"The £0.5bn we now have access to will open new doors for countless UK SMEs seeking growth capital "
SME finance platform, Code Investing, has announced that its institutional funding lines for SMEs have hit £0.5bn.
Code Investing's institutional loans, available between £500,000 and £5m, are targeted at established UK SMEs seeking growth capital.
As well as investment and commercial banks, Code Investing's partners include non-bank pension and asset management funds, which it says are an increasingly popular choice for UK SMEs seeking growth capital.
The loans are provided in the form of structured and asset finance, hire purchase and leasing arrangements, bridging facilities, cash flow and unsecured loans.
Code Investing says its partners can offer lower arrangement fees, longer loan terms and rapid completion times.
Ayan Mitra, CEO of Code Investing, commented: "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.
"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 advisors and accountants need to have on their radars. The £0.5bn we now have access to will open new doors for countless UK SMEs seeking growth capital and be a major fillip to the economy in the face of Brexit."