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Addressing The £22 Billion SME Lending Gap
In a rapidly evolving financial landscape, small and medium-sized enterprises (SMEs) in the UK face a daunting challenge: a staggering funding gap of £22 billion. As UK banks retreat from lending post-financial crisis, businesses struggle to secure the necessary capital to grow. Lenkie, a London-based startup, believes that the solution lies in reinventing the way SMEs access funding.
Lenkie’s Innovative Approach to Financing
Lenkie co-founders, Sanjeev Jeyakumar and Nnaemeka Obodoekwe, have identified a critical need for timely capital in the SME sector. Unlike traditional lending models focused on receivables finance—where businesses borrow against completed invoices—Lenkie’s model centers on financing payables. This means that when businesses receive new orders, Lenkie can immediately provide the necessary funds to fulfill them, effectively bridging the cash flow gap until payment is received from clients.
The Role of Technology in Smooth Financing
At the core of Lenkie’s operations is a powerful technology platform that enhances the credit application process. With this platform, SMEs link their bank accounts, allowing Lenkie to conduct quick assessments. This speeds up the decision-making process, providing businesses with much-needed capital in a matter of minutes instead of days. As Jeyakumar puts it, “These businesses need a much more seamless and frictionless credit experience.”
Empowering Businesses and Supporting Growth
Through its innovative financing model, Lenkie has already supported hundreds of SMEs, advancing funds that enable them to invest in crucial areas such as stock and supplier relationships. Ankit Monga, owner of Mongas Kids Wear, highlights how Lenkie’s credit facility has been transformative for his business efforts to expand: “At the heart of our business is the need to invest in stock, reach new customers, and improve supplier relationships. Lenkie’s credit facility has been critical in enabling us to achieve all three.”
Why Lenkie Matters to the SME Sector
As SMEs represent a significant part of the UK’s economy—notably accounting for over 60% of employment—bridging this funding gap is not just about helping individual businesses, but also about sustaining economic growth. With Lenkie’s recent €62.2 million Series A funding, which includes both equity and debt financing, the company is set to accelerate its efforts in supporting various sectors including manufacturing and retail.
The Future of SME Financing
Looking ahead, Lenkie aims to raise awareness about its financing solutions and may introduce options through embedded finance, making capital even more accessible. The SME financing landscape is changing, and Lenkie is at the forefront, eager to help businesses overcome the challenges of cash flow and thrive in a competitive market.
Want help with strategy? Connect with Lenkie and explore how their tailored financing solutions can empower your small business growth.
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