LHV UK starts issuing SME loans after FCA enrollment

By Gloria Methri

LHV UK Limited, a subsidiary of AS LHV Group, has been registered in the Financial Conduct Authority’s financial services register, enabling it to start issuing SME loans in the United Kingdom.

In October, LHV UK acquired the SME lending business of Bank North, including its £17.9 million loan book, 20 sales, and support staff. Since the acquisition, LHV UK has only been able to serve the existing customers. Now, the company’s enrollment in the financial services register enables it to immediately start issuing commercial real estate-backed loans starting from £500,000.

The team, based in Manchester, forms LHV UK’s SME lending business and will maintain its regional approach and commit to further developing relationships with local commercial brokers. In addition to the Manchester office, which will serve the North, the company plans to start issuing loans in the South east from its London headquarters.

LHV UK says it uses technology to streamline and approve loans to local businesses faster than its competitors. The firm has ready access to capital and funding, which is essential when running a loan business.

Madis Toomsalu, Chairman of LHV UK, said, “Lending to enterprises has been the core business area of our parent company, where it enjoyed 14 years of consecutive growth. There is a strong proven demand for SME loans, and we are confident that by leveraging our considerable experience and readily available capital, LHV UK can quickly establish and grow a strong lending business. Our strengths are technology-powered faster lending process and loan managers with long-term experience who understand the needs of local entrepreneurs.”

LHV UK’s current primary focus is obtaining a full banking licence in the United Kingdom. The application was submitted in March 2022 and is subject to regulatory approval by the Prudential Regulatory Authority and the FCA.