ArchOver has partnered with Rocking Horse, which provides research and development (R&D) tax credit loans to UK small- and medium-sized enterprises (SMEs).
Rocking Horse focusses on UK SMEs that are loss-making and often excluded by traditional banks and online lending infrastructure.
ArchOver has formed the alliance to fund deals of exceptional size jointly, on a case by case basis.
The peer-to-peer business lender said the combined funding resources and market reach will allow both businesses to take advantage of funding opportunities, which few, if any, other lenders in the market would be able to service otherwise.
Less than two weeks ago both firms came together to fund an SME in the fintech space that provides e-payment and digital escrow facilities.
During the Covid-19 pandemic, ArchOver reported strong interest in its ‘Advances’ product, which offers unsecured loans to businesses backed by R&D tax claims or government grant receipts.
In April, ArchOver said that the profile for lending against HMRC R&D tax credits remains relatively stable, even in these current times. To date the platform has funded more than 30 advances nearing £7m in loans to businesses in the R&D space.
“ArchOver is delighted to have formed this alliance,” said Howard Miller, head of commercial at ArchOver.
“The team at Rocking Horse share our passion and professionalism to help more UK businesses benefit from this kind of lending.
“ArchOver has provided specialist financing in the R&D space since late 2018; we allow businesses to borrow against their R&D tax claims up to nine months ahead of the payment due from HMRC.”
This is the latest partnership for Rocking Horse.
In May the firm entered into a multi-million pound partnership with specialist investment firm Quilam Capital, for a new lending facility that will fund Rocking Horse’s loans to UK SMEs eligible for government R&D tax credits or Innovate UK grant schemes, secured against these future cashflows.