The former equity crowdfunding platform recently partnered with BNP Paribas.
Code Investing has found itself another partner. This morning, the platform has announced a deal with City of London Group (COLG), the parent company of a group of businesses focused on serving the UK SME market, which is listed on AIM.
CODE used to go by the name CrowdBnk, back when it was focused on sourcing early-stage equity deals for individual investors. The platform’s strategy has since shifted significantly.
It is now focused on originating business loans for a range of institutional investors. Earlier in July, the firm announced a partnership with the asset management arm of French banking giant BNP Paribas – which intends to lend more than €1bn a year to SMEs across Europe.
COLG intends to lend £50m to UK small businesses through its partnership with CODE over the next four years, with the option to expand that volume based on demand.
CODE will originate loans according to COLG’s specifications, with a focus on property-based SMEs, targeting bridging loans across the industrial, office, retail and residential sectors. The loans may be used for purchase, refinance and refurbishment of investment property, or for trading business premises.
Michael Goldstein, CEO of COLG, said in a statement: “Collaborating with Fintech companies to enhance direct lending opportunities is an important component of our strategy. This relationship gives COLG access to attractive small business loans over the next four years, serving to further diversify our investment portfolio.”
“This agreement follows a period of due diligence on CODE Investing and its capabilities and processes, and we’re confident our joint effort will deliver a positive benefit to economic growth and to UK SMEs in particular.”
CODE claims to have facilitated £47m in lending to date.