Two years after its launch, online lender Spotcap is expanding into the UK market, providing flexible and accessible funding solutions to small and medium-sized enterprises (SMEs).
Spotcap provides SMEs with credit lines and business loans of up to £150,000 through an online application process. While traditional lenders make credit decisions based on historical financials and old-fashioned credit scoring, Spotcap 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 small businesses 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.
There are 5.4 million private sector businesses in the UK. More than 99 percent of these are SMEs. Despite a combined annual turnover of £1.8 trillion these businesses often face difficulties obtaining financing. As many as half of loan applications made by SMEs with fewer than 50 employees are rejected by traditional lenders, creating a strong demand for alternative financing in the UK.1
Niels Turfboer will lead Spotcap’s UK operations. He has nearly 20 years of experience in European banking and business finance. Turfboer believes that despite economic uncertainty post-Brexit the UK remains a robust market.
“Spotcap understands Britain is 'open for business.' The underlying dynamics of the economy are unchanged and capital will be needed to make the most of opportunities in turbulent times. We look forward to working with the UK SME community and playing a part in providing the financial infrastructure needed to maintain Britain's strong entrepreneurial and creative prowess.”
Spotcap has raised £56 million in equity and debt funding and issued more than £45 million in credit lines. It is operating in the UK with a credit license from the Financial Conduct Authority (FCA).