Banking services provider LHV UK will start offering loans starting at £500,000 to small and medium enterprises (SMEs) after being accepted on the Financial Conduct Authority’s (FCA) money laundering registry.
It means LHV UK can now provide businesses with loans that are supported by commercial real-estate and comes at a time when many businesses are facing a more challenging funding landscape.
LHV UK provides financial services to cryptoasset firms Blockchain.com and Coinbase, as well as the international payments firm Wise.
“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,” said Madis Toomsalu, chairman of LHV UK.
It comes shortly after the business obtained the SME lending branch of Manchester-based Bank North. The acquisition, according to the firm, included a £17.9m loan book, 20 employees and broker agreements.
The lender will provide loans in the North from its Manchester office and the South East from its London headquarters. LHV UK has another office based in Leeds for its development and engineering team.
“Lending to enterprises has been the core business area of our parent company LHV Group, where it enjoyed 14 years of consecutive growth,” said Toomsalu.
Following the approval of its lending licence, LHV UK is now waiting on its full UK banking licence, having submitted an application back in March.