Kikin lands $20m debt line for AI-driven SME lending

By Vriti Gothi

UK SME lending start-up Kikin Financial has secured a debt facility of up to $20 million to expand its non-equity funding offering to small and medium-sized businesses across the UK, as alternative lenders continue to target gaps left by traditional banks.

The facility was arranged via private credit marketplace Percent and will be used to support short-term working capital and invoice financing for consumer-facing SMEs. Founded in 2023, Kikin positions itself as a fast-access lender, targeting businesses that require flexible credit without dilution.

Kikin’s platform uses AI-driven underwriting integrated with accounting software providers, including Xero, QuickBooks and Clear Books. By analysing real-time financial data, the system determines credit limits and dynamically adjusts funding based on a borrower’s financial position. The company says businesses can access capital within minutes, with repayment terms ranging from one to six months.

The funding comes amid sustained demand for alternative SME finance in the UK, where higher interest rates and tighter bank credit conditions have increased reliance on fintech lenders and private credit platforms. Invoice financing and short-term facilities have gained particular traction among growth-stage firms managing cash-flow volatility.

Kikin also differentiates its offering through a focus on sustainability-linked lending. Credit pricing and limits are influenced not only by financial performance but also by environmental, social and governance (ESG) factors, with discounts offered to businesses aligned with sustainability goals.

“Kikin’s mission is twofold: to empower UK SMEs with the capital they need to grow, and to ensure that their financing contributes positively to the world around us,” the company said.

The partnership with Percent reflects broader collaboration between FinTech lenders and private credit marketplaces, as both seek scalable ways to deploy capital into the SME sector while maintaining data-led risk controls.