Praetura backs SMEs with record lending

Praetura’s lending division has secured a record-breaking first six months of the year, lending more finance to UK SMEs in H1 than it ever has before and up by 32% against the same period in 2023.

The division, which comprises five companies, has lent a combined £1bnsince the group was founded in 2013. Over the period, the specialist alternative lender supported more than 6,500 businesses, in a wide range of sectors such as manufacturing, transport, recycling, import and distribution to retail and hospitality, with funding options starting at £10,000 and up to £35m.

Praetura Asset Finance’s deals were up in the first half of 2024 by a third (32%) on the same period in 2023 as demand grows among SMEs for alternative financing to fuel growth. This includes completing its largest deal yet, lending £5m in the construction sector.

Elsewhere across the division, Kingsway Finance reported a 41% increase in businesses supported in H1 2024 compared to the same period last year. This includes support for firms via the Recovery Loan Scheme Phase 3, following its reaccreditation to the scheme by the British Business Bank.

Kingsway has also received approval from the British Business Bank to provide the recently launched Growth Guarantee Scheme, the successor to the Recovery Loan Scheme.

Praetura Commercial Finance Group recorded a 225% increase in funding provided in the first half of 2024 compared to H1 2023, providing a combination of invoice discounting, refinancing, cashflow lending, property loans and stock revolver finance. This growth includes Praetura Invoice Finance whose deals often feature collaborative funding solutions including asset refinance and commercial loans across the companies in Praetura’s lending division.

Zodeq, acquired by Praetura in 2022, extended the division’s lending offering with its specialism in invoice financing for the recruitment sector. Zodeq delivered a 37.5% increase in new clients this year against the same period last year, with 29% being signed in one month alone.

To support the record-breaking performance, Praetura’s lending division has bolstered its workforce by almost a quarter in the past year to 143 staff, and an incredible 276% in the past five years. The division also launched its new graduate scheme, the Summit programme, to foster new talent in the finance sector and since inception has employed 40 graduates and apprentices with six additional team members joining in September this year under the programme. 

Building on its growth, the North West-based business opened an office in Milton Keynes in early April 2024 as it expands its footprint to support businesses across the country.

Peadar O’Reilly, CEO of Praetura Group’s lending division, said: “The economic landscape has encouraged founders and SMEs to be creative about how they finance their growth plans, and they’re embracing alternative funding options as a way to meet their ambitions. This means that we’re lending more than ever before, and we’re proud that we’ve already been able to support so many British businesses thus far in 2024.

“This achievement is testament to our talented teams of experts across the division continuing to deliver relationship-led, individualised solutions which we have become renowned for. They’re delivering a level of support that is more than money, extending advice and know-how that is helping to supercharge growth. We look forward to the second half of this year and continuing to support SMEs and ensure they thrive during the economic recovery.”