4 FinTechs offering innovative lending solutions to SMEs in Europe

By Gloria Methri

A new wave of FinTechs and neobanks has been disrupting the SME lending ecosystem by embracing digital technology, data, and advanced analytics tools such as machine learning and AI.

FinTech advancements allow lenders to accelerate payment processing times and offer personalized experiences based on individual mortgage seekers’ needs.

They can automate credit decision-making to provide accurate, real-time approvals, allowing SMEs to gain access to funds quickly. Automating data collection, risk decisions and pricing enables lenders to automate approvals and ensure funding is in hand within a matter of days.

Their products tend to be more flexible and more personalized to each SME’s unique needs, allowing them not only to survive but fully adapt to a changing, uncertain environment.

Here are four FinTechs that are offering innovative lending solutions to SMEs in Europe:

• Allica Bank

Allica Bank combines modern technology with local relationships to ensure SMEs have the tools and the funding they need to operate. Based in the UK, the fintech challenger bank offers SMEs asset financing, with up to £1 million worth of flexible financing options. By the end of 2022, Allica Bank had reached its largest milestone, disbursing over £1 billion in loans to SMEs in Britain. The neobank targets £3 billion of lending to SMEs over the next 3 years.

• Atom bank

Durham-based FinTech, Atom Bank offers Fixed Saver accounts and secured business lending for small and medium-sized enterprises. It has already loaned more than £4 billion to UK homeowners, and over £1 billion to small businesses since its launch, with the funds enabling the digital bank to further ramp up lending activity.

At the heart of its operations is Atom’s mobile app, which allows users to bank and access statements anywhere, anytime with customer service accessible year-round. Mortgage repayments are also monitored through the app, with Atom providing an independent broker to offer advice on the best deal.

• LHV UK

LHV Bank is a provider of banking services for global FinTechs and SME lending solutions for UK businesses. The company’s SME Lending division offers commercial real estate investment loans and trading loans from £0.5m to SMBs in the UK.

By leveraging its robust balance sheet, ready access to capital, and purpose-built technology that accelerates the funding process, LHV Bank can deliver swift decisions on loan applications and rapid access to funds. In addition to the Manchester office serving the North, LHV Bank is about to begin issuing loans in the South from its London headquarters.

• Qonto

Qonto, the European financial solution for SMEs and freelancers, opened a new financing platform in June 2023, that supports Qonto customers in the German market in the growth of their businesses with suitable financing offers. Qonto customers have seamless access to offers from various partners – whose financing products are directly accessible via the platform.

The financing offers provided are specifically tailored to the needs of SMEs and can be accessed easily, securely, and directly via the platform.