Two years after its launch, online lender Spotcap is expanding into the UK market, providing flexible funding solutions to small and medium-sized enterprises (SMEs).
Spotcap provides SMEs with credit lines and business loans of up to £150,000 through an online application process. While traditional lenders make credit decisions based on historical financials and old-fashioned credit scoring, Spotcap uses a unique, proprietary credit algorithm, which provides deep insight into the financial condition of a business, enabling quick, sound decisions.
Jens Woloszczak, CEO and founder of online lender, Spotcap, believes that the expansion into the UK market is an important milestone that reinforces their commitment to the wider SME community.
He says, ‘Our goal is to enable SMEs to embrace growth opportunities. We do this by offering our credit lines to small businesses in markets that need alternative funding solutions.’
There are 5.4 million private sector businesses in the UK and more than 99 per cent of these are SMEs. Despite a combined annual turnover of £1.8 trillion these businesses often face difficulties obtaining financing.
As many as half of loan applications made by SMEs with fewer than 50 employees are rejected by traditional lenders, creating a strong demand for alternative financing in the UK.
Niels Turfboer, who will lead Spotcap’s UK operations thinks that, despite economic uncertainty post-Brexit, the UK remains a robust market.
Turfboer says, ‘Spotcap understands Britain is ‘open for business.’ The underlying dynamics of the economy are unchanged and capital will be needed to make the most of opportunities in turbulent times.
‘We look forward to working with the UK SME community and playing a part in providing the financial infrastructure needed to maintain Britain’s strong entrepreneurial and creative prowess.’