TP24, a Fintech that offers SMEs revolving loans from £250,000 to £5,000,000, reports that it has raised £345 million in debt funding from Barclays Bank and M&G Investments.
TP24 says that £240 million of the funding will be used for lending to SMEs in the UK and the Netherlands.
Barclays is providing up to £200m in warehouse financing, while M&G is providing up to £40m in mezzanine funding.
In addition to the amount of £200 million for the UK and the Netherlands, an amount of up to £105 million has also been made available by Barclays for lending by TP24 in Australia.
Gordon Beck, European Head of Corporate & Sustainable Securitisation at Barclays, said they are pleased to support TP24 on its mission to provide lending solutions to SMEs across the UK, the Netherlands and Australia.
Niels Turfboer, Managing Director of TP24 in the UK and the Netherlands, commented on the capital infusion:
“We are pleased and proud to announce these agreements today. The support from established parties like Barclays and M&G confirms the strength of our innovative product and the talent of our team and gives us the opportunity to grow further.”
TP24 was launched in Switzerland in 2018 and then expanded into the UK, Netherlands and Australia.
Turfboer said the capital will make a difference for UK SMEs as they face “unprecedented challenges” currently.
“With over 5 million SMEs in the UK, these businesses are the backbone of the economy, and in the coming years, we will do everything we can to help as many SME entrepreneurs as possible realise their ambitions, and thus give the UK economy an extra boost,” said Turfboer.
UK SMEs may receive loans from £250,000 to £5,000,000 and unlike with factoring, TP24 does not take over outstanding invoices.