Fintex Capital has extended its funding line to ThinCats to include loans delivered under the recovery loan scheme (RLS), after the alternative lender was accredited earlier today.
RLS replaces the previous state-backed Covid schemes including the coronavirus business interruption loan scheme (CBILS), which ThinCats was accredited for last April.
Fintex Capital, an alternative credit-focused investment firm, had already agreed the funding line with ThinCats to support businesses under CBILS, which ended on 31 March.
Fintex Capital said its mezzanine financing, alongside senior funding and ThinCats equity, could reach £400m of funding to UK small- and medium-sized enterprises (SMEs). The mezzanine funding line was financed by Fintex Capital’s discretionary investment funds.
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“Fintex continues to be an excellent funding partner for us,” said Ravi Anand, managing director of ThinCats.
“Their team’s thorough understanding of the specialist lending market has been of real benefit to our partnership.
“Extending the funding line to include RLS loans will enable us to support more mid-sized SMEs as the UK economy continues to recover from the impacts of the pandemic. The loan size and flexibility allowed under RLS will be welcomed by businesses looking to grow organically or through acquisition.”
“Fintex and ThinCats have a lot in common,” said Robert Stafler, chief executive of Fintex Capital.
“Both firms value speedy decision-making and flexibility, as well as careful implementation and disciplined lending. Executing transactions swiftly and lending with discipline are not mutually exclusive.
“They do, however, require clarity of vision, and it is a pleasure to work with like-minded professionals. As an active fintech lender we are delighted to work with ThinCats to support mid-sized SMEs, the lifeblood of the British economy, to access the finance they need and deserve.”
Last month, ThinCats announced £160m investment from Kuwait-backed Wafra Capital Partners, which will help the platform lend a further £2bn to SMEs over the coming years.