The Growth Guarantee Scheme aims to facilitate increased access to finance for smaller businesses by offering a 70% government-backed guarantee to participating lenders on loans up to £2m. This move is expected to support approximately 11,000 businesses from 1 July 2024 to 31 March 2026.
Supporting UK Businesses
The first two iterations of the Recovery Loan Scheme have already made significant impacts, enabling £4.3bn of finance to smaller UK businesses, with the third iteration offering over £1bn since August 2022, according to the British Business Bank (Figures as at the end of March 2023).
Accredited by the British Business Bank, Momenta Finance will offer business loans ranging from unsecured £50,000 – £350,000 and up to £1.5m secured. Since being accredited by the British Business Bank, we have supported over 300 smaller businesses with over £67m in funding by working with the British Business Bank. And we look forward to continuing that support under the Growth Guarantee Scheme.
With the Growth Guarantee Scheme, the key terms remain consistent with its predecessor, ensuring continuity and stability for both lenders and the business community. This means businesses can continue to benefit from:
A 70% government-backed lender guarantee
Competitively fixed interest rates
Assurance that Principal Private Residences cannot be taken as security
Eligibility for previous applicants of Coronavirus Business Interruption Loan Scheme (CBILS), Bounce Back Loan Scheme (BBLS), or the Recovery Loan Scheme
Flexibility to use funds for almost all business purposes.
“At Momenta Finance, we understand the challenges faced by SMEs, especially in these uncertain times. Our participation in the Growth Guarantee Scheme reaffirms our commitment to supporting the growth and sustainability of small and medium-sized businesses across the UK,” said Luke Jooste, CEO of Momenta Finance. “We are dedicated to providing accessible and reliable financial solutions that empower businesses to thrive.”
Amanda Hardy, Head of Capital Markets for Momenta Finance commented: “We are delighted to continue our role as delivery partner on this critical scheme. Working with the British Business Bank on our shared goal to champion SMEs as the heartbeat of the UK economy.”
About Momenta Finance
Momenta Finance, formerly Merchant Money, is a leading provider of alternative finance solutions headquartered in London, United Kingdom. Established in 2013, Momenta offers a suite of lending options, including unsecured and secured business finance, bridging and cash advances. The company’s commitment to transparency, tailored and credible funding has made it a trusted partner for businesses seeking financial support. Momenta Finance is accredited by the British Business Bank.
The borrower, a Southampton-based company established in September 2011, faced a critical need for cash flow support as they approached a busy period with several upcoming projects. Known for their comprehensive renewable energy solutions, they required £250,000 to:
Employ new staff
Purchase new equipment
Facilitate the undertaking of new projects
Ensure smooth business operations during the busy period
The company, having completed over 6,500 installations and saved over 850,000 tons of CO2, was at a pivotal moment in their growth trajectory. Without the necessary funds, they risked missing out on significant opportunities and hampering their expansion plans.
The Solution
Chris brought this opportunity to Momenta Finance. Specialising in the construction sector with over 30 years of experience, United Business Finance collaborated closely with Momenta Finance to structure a deal that would meet the borrower’s needs.
The proposed solution was a £250,000 unsecured business loan at a 13.25% interest rate. The process involved navigating numerous fast-moving parts, requiring meticulous coordination and communication between all parties.
The Result
The successful funding enabled the borrower to secure the necessary resources for their upcoming projects. With the £250,000 infusion, they were able to:
Hire additional staff to handle increased project demands
Purchase new equipment essential for their operations
Confidently take on new projects and drive business growth
This financial support not only ensured that the borrower could maintain smooth operations during their busiest period but also positioned them for sustained growth in the renewable energy sector. The deal underscored the effective collaboration between United Business Finance and Momenta Finance, highlighting the importance of teamwork and expertise in achieving successful financial outcomes.
This quarter, we achieved meaningful book growth, showcasing our continuous efforts to expand and enhance our lending portfolio. This accomplishment underscores our strategic focus on delivering reliable financial solutions to businesses.
Our business loan originations saw a remarkable increase, contributing to a 16% growth in the overall business loan book. This growth reflects our unwavering commitment to providing crucial financial support to enterprises in need.
Similarly, with the new HSBC funding line, our property loan originations contributed to a 34% growth in the overall property loan book. This significant increase highlights our ability to leverage strategic partnerships to better serve our clients.
Recovery Loan Scheme Phase 3: Launched in March, our Recovery Loan Scheme Phase 3 has been a resounding success. In a short period of time, we lent over £4 million to approximately 30 borrowers through this iteration of the scheme, demonstrating our commitment to supporting businesses during challenging times. Although this scheme is now closed, its impact has been substantial.
Our mission at Momenta Finance is to empower businesses by providing flexible and reliable financial solutions. The achievements of Q2 reflect our unwavering commitment to this mission, and we are excited to continue our journey of growth and support for the business community.
Stay tuned for more updates as we continue to drive success and innovation in the finance sector.
About Momenta Finance
Momenta Finance, formerly Merchant Money, is a leading provider of alternative finance solutions headquartered in London, United Kingdom. Established in 2013, Momenta offers a suite of lending options, including unsecured and secured business finance, bridging and cash advances. The company’s commitment to transparency, tailored and credible funding has made it a trusted partner for businesses seeking financial support. Momenta Finance is accredited by the British Business Bank.
Visit the HMRC online services website at https://www.gov.uk/log-in-register-hmrc-online-services. Then, click the green ‘sign in’ button.
Step Two
In the ‘Business tax account,’ locate the section called ‘PAYE for employers.’ Here, you will find a summary of upcoming and overdue amounts, reflecting your HMRC status for PAYE.
Step Three
Under the ‘Your payments’ section, click ‘Check what you owe and make a payment.’
Outcome: Significant reduction in monthly payments, enhanced cash flow, and comprehensive funding for a new project.
At Momenta Finance, we believe that the right financial solution can be a game-changer for business growth. This case study highlights our successful collaboration with Acorn Business Finance to support a London-based solicitors firm in securing the funding they needed for a new project while simultaneously reducing their financial burden.
The Challenge
A well-established firm of solicitors in London approached Acorn Business Finance with a funding requirement for an upcoming project. During a detailed review of their business and financial needs, Stuart Gibson, Managing Director at Acorn, discovered that the firm had previously taken out a high-interest loan from a peer-to-peer lender. This loan was costing them nearly £7,000 a month—a significant strain on their finances.
The Solution
Recognising the potential for significant savings and better financial management, Stuart Gibson collaborated with Momenta Finance to devise a more cost-effective funding solution. Leveraging our extensive network of funders, Stuart proposed a bespoke financing option tailored to the client’s unique needs.
Our dedicated team, including Tom and Tim, worked closely with Acorn’s Simon Rickman to expedite the loan process. The solicitors firm, proactive and cooperative, swiftly provided all necessary documentation, enabling us to move quickly.
The Results
In just a few days from the initial proposal, we secured £150,000 in funding for the client. This new unsecured business loan not only covered the costs of their new project but also allowed them to repay the existing high-interest loan. The impact was immediate and substantial:
Reduced Monthly Payments: The new loan reduced their monthly payments from £7,000 to £3,980, providing a significant boost to their cash flow.
Business Growth: With lower monthly obligations, the firm now has more funds available for other business needs.
Tailored Financial Strategy: By understanding both the short-term and long-term goals of the client, we provided a financial solution that addressed their immediate needs and offered the flexibility for early settlement if desired.
This case is a testament to the power of collaborative, client-focused financial solutions. By working closely with Acorn Business Finance and thoroughly understanding the client’s business, Momenta was able to deliver a funding solution that not only met their project needs but also significantly improved their overall financial health.
In 2020, we reached a significant milestone when we were accredited by the British Business Bank to facilitate business lending during the COVID-19 pandemic. This was an exciting development for us, but it also brought to light various operational challenges within our organisation. Upon reviewing our decision-making funnel, we identified considerable opportunities to enhance our processes.
Determined to improve our decision-making through automation while valuing the expertise of our underwriters, we aimed to shift toward an “assisted decisioning” model. This would involve augmenting core processes with automated systems rather than replacing human judgment entirely. Consequently, we chose LendingMetrics’ Auto Decision Platform as our strategic partner to implement this new technology.
While our focus remains on lending excellence, we needed a partner who could guide us through the complexities of technological implementation. LendingMetrics was perfectly suited for this role. Despite initial reservations about the sophisticated capabilities of the Auto Decision Platform, the LendingMetrics team quickly brought us up to speed, involving us extensively in the implementation and launch process and integrating our feedback.
The implementation
“We are very data-driven,” we often say at Momenta Finance. Working with the Auto Decision Platform has opened up many avenues for optimisation discussions with LendingMetrics. Learning from data and making informed revisions to our decisioning processes are key pillars underpinning ADP’s design, aspects which have been pivotal throughout the implementation phase. This collaborative effort has resulted in a platform finely tuned to our specific needs.
Our close working relationship with the LendingMetrics team has been incredibly beneficial. “The biggest compliment I can pay them is their flexibility—it’s never just ‘computer says no’, it’s ‘let’s look into this’,” we often reflect.
The future
Looking to the future, we believe the perfect decision engine is just within our reach. We are committed to pushing further into embedded finance, deploying more innovative products, and upholding our data-driven approach. We are also exploring the potential of integrating AI to further enhance our decisioning processes, enabling us to analyse and learn from customer data more effectively.
As we continue to evolve, the Auto Decision Platform will remain central to our strategic vision at Momenta Finance.
Lending Metrics:
LendingMetrics is a multi-award-winning financial technology and data specialist. Its Auto Decision Platform (ADP) leads the way in assisted decisioning in the financial services sector, allowing lending approvals to be made in seconds rather than days. Since it was launched in 2016, ADP has permitted businesses to rapidly deliver increased lending volume, improve decision quality and reduce overheads. The platform utilises proprietary data solutions and is linked to all major credit rating agencies (CRAs) as well as other third parties, including Open Banking platforms. LendingMetrics is registered as a CRA and AISP Open Banking provider and is authorised and regulated by the Financial Conduct Authority. It was named ‘Best Credit Risk Solution’ at the Credit & Collections Technology Awards four years running, and ‘Best Technology Partner’ at the Car Finance Awards of 2020. Additionally, it was named an Organic Growth 25 business after demonstrating high levels of growth, and has featured as a top 20 ‘premier’ company on the Credit and Collections power list two years in a row. The company’s robust technology and data infrastructure and “bluechip” partnership eco-system focus on delivering scalable and secure affordability, suitability and predictive solutions to the entire financial sector.
This year, Momenta Finance was shortlisted in two categories for the Business Moneyfacts Awards 2024, Best Alternative Business Funding Provider and Best Business Loan Provider. These nominations are a testament to our ongoing dedication to delivering innovative and effective financial solutions to businesses across the UK.
Business Moneyfacts Awards 2024
We are proud to announce that Momenta Finance received a Highly Commended accolade in the Best Alternative Business Funding Provider category and a Commended recognition in the Best Business Loan Provider category.
“This recognition is a reflection of our collective commitment to excellence and innovation in the business finance sector. I am immensely proud of our team and thankful for the unwavering support from our brokers and partners.” – Luke Jooste, CEO at Momenta Finance.
A heartfelt thank you goes out to every member of the Momenta Finance team. Your hard work, dedication, and passion are the driving forces behind our accomplishments. Your efforts ensure that we continue to lead with innovation and service excellence in the competitive finance industry.
We owe a substantial part of our success to our brokers and partners. Your consistent support and trust empower us to continue innovating and improving. We are profoundly thankful for your partnership and look forward to achieving even greater successes together.
About Momenta Finance
Momenta Finance, formerly Merchant Money, is a leading provider of alternative finance solutions headquartered in London, United Kingdom. Established in 2013, Momenta offers a panorama of lending options, including unsecured and secured business finance, bridging and cash advances. The company’s commitment to transparency, tailored and credible funding has made it a trusted partner for businesses seeking financial support. Momenta Finance is accredited by the British Business Bank to provide loans under the Recovery Loan Scheme.
Shortly after receiving our British Business Bank accreditation, we hit the ground running, successfully disbursing several RLS loans with an average of £150,000 each. This initiative has not only bolstered our loan offerings but also solidified our commitment to supporting the backbone of the UK economy—SMEs.
A Leap in Property Originations
Working with HSBC, we introduced a £100m funding line focused on residential bridging in the UK. Marking a significant leap in our operations. This strategic move resulted in unprecedented growth in property originations, witnessing a surge of 172% relative to the last quarter of the previous year.
Setting New Benchmarks in Loan Approvals
Our credit team has been at the forefront of this journey, processing over 3,000 applications in the past quarter alone. This not only set new benchmarks in loan approvals but also played a crucial role in providing essential funding to SMEs, leading to remarkable growth in our Business Loan book.
Exciting Updates: Streamlining Processes and More
We’re not stopping there. Our journey towards innovation and excellence continues with significant improvements to streamline our processes. We’ve said goodbye to MI on applications, simplifying the process to make it quicker and more efficient.
Looking Ahead
As we move forward, our focus remains on enhancing your experience and success. These achievements and updates are just the beginning. With the continued support from our brokers and our dedicated team, we’re poised to reach even greater heights in Q2.
“As we wrap up an incredible Q1 and gear up for an even more promising Q2, the strides we’ve made are not just numbers on a page—they’re a reflection of our unwavering commitment to our clients and partners. We’re not just funding loans; we’re fuelling businesses across the UK.” – Luke Jooste, CEO at Momenta Finance.
Momenta Finance, formerly Merchant Money, is a leading provider of alternative finance solutions headquartered in London, United Kingdom. Established in 2013, Momenta offers a panorama of lending options, including unsecured and secured business finance, bridging and cash advances. The company’s commitment to transparency, tailored and credible funding has made it a trusted partner for businesses seeking financial support. Momenta Finance is accredited by the British Business Bank and upholds the highest industry standards.
Working alongside Gemma, an Associate Director at On-Site Finance, we were able to facilitate a £200,000 Unsecured Business Loan for a prestigious London-based law firm. This collaboration underscores our dedication to providing flexible, client-centric financial solutions, enabling the firm to manage and expand its litigation portfolio.
The Challenge
Faced with the opportunity to expand their caseload but constrained by the costs of current litigation cases, the firm found itself seeking a financial solution that would enable them to navigate through this period of potential growth.
Additionally, the firm expressed a specific need for a loan structured to provide financial breathing room. A key requirement was the inclusion of an interest-only period
The Solution
In response to the firm’s unique requirements, we structured a £200,000 unsecured business loan over 36 months with a 6-month interest-only period. This financial arrangement was designed to provide the law firm with the necessary flexibility to effectively manage both current and future caseloads without the immediate financial pressure of standard loan repayments.
The Momenta offer stood out, owing to its competitive terms, the interest-only period, in particular, provided the breathing room necessary for the firm to manage cash flow, allowing them to allocate resources more efficiently across their portfolio of cases.
On-Site Finance serve as intermediaries between businesses seeking funding and lenders who can provide the necessary capital. OnSite play a crucial role in facilitating the financial needs of companies by connecting them with appropriate funding sources. In a dynamic and complex financial landscape, their team provide market insights, and a personalised approach to help businesses secure the funding they need to grow, innovate, or manage their operations.
This month, we’re shining the spotlight on two deals that were introduced to us by Aureum Finance, an independent finance broker that specialises in property and business finance. Wayne and Nick Kelly, Financial Consultants at Aureum Finance worked alongside our Sales Director, Tom, to find the right solution for two of their clients – a food manufacturer and digital marketing agency. Our flexible unsecured business loan was adapted to meet the needs of both clients.
Digital marketing agency expansion
A London-based digital marketing agency, aiming to broaden its services by acquiring a complementary business, faced the challenge of needing a £200,000 business loan with flexible terms. Amidst a highly competitive market with multiple offers, we were able to secure the deal based on our competitive terms.
The Solution:
We provided Nick’s client with an unsecured business loan tailored to the agency’s needs, featuring a 60-month term without any penalties for early repayment. This financial solution empowered the agency to confidently proceed with its strategic acquisition, facilitating its expansion goals.
Managing the cash flow of a sole trade
A sole trader in Northern Ireland, leading a long-established family business in the food manufacturing industry, needed a business loan to manage cash flow and acquire stock.
The Solution:
A £50,000 unsecured business loan over 48 months. This deal demonstrated the effectiveness of our swift application-to-funding process, highlighted by Wayne’s keen understanding of his client’s requirements. Thanks to a thoroughly prepared application, the borrower received the necessary funds within 48 hours of applying.
Thank you to Wayne for bringing these opportunities our way. With several deals currently in our pipeline, we are looking forward to a continued partnership with Aureum Finance.
Aureum Finance was founded in 2018 by Dean Brown, an investment manager with over 20 years experience. This experience provided access to diverse funding sources and strategies, allowing Aureum’s team to offer specialised services. Aureum Finance is an independent finance broker that specialises in all forms of property and business finance. Their team covers every sector of the market. Working with select partners, Aureum, assist with personal finance and insurance in order to provide clients with a full-service offering.
