The fintech provides cash advances to individuals and SMEs, with the facility drawn over 24 months.
Aluna Partners Group, a global investment banking firm specializing in structured credit solutions, has arranged an up to $10 million asset-backed finance transaction for a rapidly growing UK-based fintech company. Under the terms of the agreement, the company will be able to draw on the facility over the next 24 months to support the expansion of its loan book. This financing complements a recently completed $1 million equity round.
The fintech provides cash advances and tailored financing solutions to individuals and small businesses, leveraging a proprietary credit scoring engine that uses Open Banking data to assess affordability. This enables the company to serve customers who are typically underserved by traditional banks, offering flexible and scalable lending options.
The UK economy is projected to grow steadily, with nominal GDP expected to rise over the coming years. Household debt levels are decreasing, while default rates for both small businesses and unsecured lending have remained stable, reflecting resilience among consumers and enterprises. These trends, combined with anticipated reductions in inflation, suggest an improving financial climate and enhanced borrowing capacity for households and businesses alike.
Since the financial crisis, reduced lending from major banks has created a significant funding gap for small and medium enterprises (SMEs), which represent a substantial portion of the UK economy and private-sector employment. This has increased reliance on alternative finance solutions, highlighting the growing importance of fintech lenders in supporting SMEs and individual borrowers.
Stefano Sciacca, Partner at Aluna Partners Group commented:
“We are pleased to support this fintech company in providing critical financing solutions that help smooth income volatility and maintain living standards. Their proprietary credit risk assessment, coupled with diverse lending products and a low-concentration risk strategy, enables them to achieve lower-than-average default rates in the industry. With a scalable go-to-market approach and strong strategic partnerships, they are well positioned as a leading lending-as-a-service provider in the UK.”
A spokesperson for the client added:
“Our ability to address market challenges, particularly in supporting individuals and small businesses affected by tighter banking criteria and cost-of-living pressures, is greatly enhanced through our partnership with Aluna Partners Group. Leveraging our advanced credit risk assessment and product suite, we are able to deliver substantial value to our customers. This collaboration strengthens our capacity to serve our community and aligns with our vision to become a trusted financial partner, supporting stability and growth across the gig economy and beyond.”
