LHV Bank ramps maximum SME loan size to £5m

The bank’s move to offer larger sized loans brings it more sharply into competition with mid-market lenders such as Allica, OakNorth and Shawbrook.

Less than a fortnight after it secured its UK banking license LHV Bank is going after the SME mid-market lending market. 

LHV Bank, formerly the UK arm of Estonian financial services giant AS LHV Pank but now a separate entity and part of the listed LHV Group, will now offer loans up to £5m.

After acquiring the collapsed fintech lender Bank North last October, LHV has been ramping up its SME lending. Previously so far it has kept this closer to competing with the likes of Funding Circle with its largest loan at c.£2m. 

Now it has moved up to offer larger loans bringing it more sharply into competition with mid-market lenders such as Allica Bank, OakNorth and Shawbrook Bank.

"Expanding our maximum loan size will allow us to better support UK businesses in achieving their growth ambitions,” said Becky Owen, Commercial Director of LHV Bank.

‘With our processes, team and technology proven to deliver rapid funding to businesses, our near-term goal is to strengthen our broker network and establish long-term, mutually beneficial relationships,” she added.

Alongside SME loans and soon-launch retail cash savings, LHV Bank provides banking services to fintechs.  

It entered the SME lending market in October of last year by acquiring Bank North’s SME lending business.