Germany-based Spotcap, an alternative lending platform that raised millions in a funding round earlier this year, is entering the U.K. market.
Reports Wednesday (Nov. 9) said Spotcap will launch in the U.K. two years after the company first began operating. The company offers small businesses credit lines and small business loans via online loan applications. The company uses its own credit risk algorithm to assess applicants, reports said.
“Our goal is to enable SMEs to embrace growth opportunities,” said Spotcap CEO and Founder Jens Woloszczak in a statement. “We do this by offering our credit lines to small businesses in markets that need alternative funding solutions. We already operate in Spain, Australia and the Netherlands. The expansion into the U.K. is an important milestone for us that reinforces our commitment to the wider SME community.”
Like other alternative lending platforms, Spotcap pointed to the difficulty that many small businesses face when seeking traditional bank loans. The firm cited Howarth Roth figures released earlier this year that found up to half of loan applications made by some of the smallest SMEs in the U.K. were rejected.
In addition to announcing its launch in the U.K., Spotcap also revealed that Niels Turfboer will head the firm’s operations in Britain.
“Spotcap understands Britain is ‘open for business,'” Turfboer stated. “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 U.K. SME community and playing a part in providing the financial infrastructure needed to maintain Brittan’s strong entrepreneurial and creative prowess.”
Last February, Spotcap announced a $34.4 million funding round led by Finstar Financial Group, a Russia-based private equity firm. At the time, the company said that it would use the funds to fuel international expansion.
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