Birmingham-based Love Finance secures £45m from Paragon Bank and LGB Capital Markets
At a glance
This article covers a debt financing on 1 October 2025 for Love Finance, the UK’s fastest-growing SME lender and broker, founded by Jack Smith. The company raised £45m in debt financing led by Paragon Bank, with LGB Capital Markets also participating.
What does Love Finance do?
Love Finance is a UK lender and broker providing business loans and brokerage services to small and medium-sized enterprises. Its primary purpose is to provide credit from its loan book to support small and medium-sized businesses' cashflow and investment.
Why is Love Finance useful?
Problem
Many UK small and medium-sized enterprises struggle to access fast, flexible finance for growth or cash flow. Slow decisions and limited lending options delay projects and harm business resilience.
Solution
Love Finance explains that it lends directly from its own book to speed lending decisions. This provides fast, flexible loans tailored to SME needs across the UK.
How much did Love Finance raise?
Love Finance raised £45m in its first debt financing arrangement, comprising a £35m revolving credit facility from Paragon Bank and a £10m junior medium-term note (MTN) programme from LGB Capital Markets. This makes it the 2nd largest funding round in October 2025 (7 recorded). As of 1 October 2025, the round is the 43rd largest of the year (477 total) in the Startupmag database.
For details on how Startupmag compiles its rankings, view our Methodology.
Who invested in Love Finance?
The key plyers in the transaction were:
- Paragon Bank: A FTSE 250 specialist lender whose Structured Lending division provides senior secured funding to UK non-bank lending businesses to support the scaling of their loan activities.
- LGB Capital Markets: A capital markets firm that offers medium-term note programmes and other financing solutions to support structured debt arrangements for non-bank lenders in the UK.
In the funding announcement, Jamie Pickering from Paragon Bank said:
Paragon’s Structured Lending division is designed to support high-growth businesses with bespoke funding solutions that enable them to scale at pace. Our latest partnership with Love Finance reflects this mission.
Paragon added that by backing lenders like Love Finance it aims to strengthen the resilience and creativity of the UK SME sector and support economic prosperity and regional development.
In the funding announcement, Fergus Rendall from LGB Capital Markets said:
We're delighted to be supporting Love Finance at such a pivotal stage in their growth. Their data-driven approach to SME lending, combined with a clear vision and strong execution, makes them a standout in the market.
Expanding that the funding structure, combining Paragon’s senior facility with LGB Capital Markets' MTN programme, provides a scalable platform for the next phase of expansion and that it expects the business to continue growing.
If you're researching potential backers in this space:
- Explore our list of fintech venture capital firms in the UK
- Browse our directory of fintech angel investors in the UK
Who founded Love Finance?
Jack Smith is the founder of Love Finance.
In the funding announcement, Jack Smith explained:
Securing our first debt financing is a major milestone for Love Finance. With the support of Paragon Bank and LGB Capital Markets, we can scale our own book lending, reach more SMEs across the UK, and continue driving innovation in business finance.
The company continued that the funding would bring it closer to its goal of becoming a trusted and accessible SME lender.
Where is Love Finance based?
Love Finance is based in Birmingham, UK.
What sector is Love Finance in?
Love Finance operates in the fintech sector. Fintech uses technology to improve financial services and make them faster and easier to use. It includes digital payments, online banking, lending, and financial software for consumers and businesses.
Key trends and challenges in Fintech:
Funding and profitability pressures
Many fintech lenders still rely on external bank lines or bond programmes, increasing costs when rates rise.
Regulation and consumer protection
Regulators demand clearer credit checks and fair treatment, such as the FCA Consumer Duty introduced in 2023.
Data, AI and model risk
Machine learning speeds loan decisions from days to minutes, but explainability and GDPR privacy issues remain.
For a deeper look at innovation in this space, see the fintech startups in the UK.
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