Alternative lender breaks even

Just Cashflow PLC has quietly begun making money on a monthly basis.

As Funding Circle completes the UK online lending sector’s first IPO, a lesser-known platform has broken into the black.

Just Cashflow PLC is now delivering a profit on a monthly basis, having first achieved the feat in July. The firm claims to have achieved this despite ‘multi-million pound’ investments in its people, infrastructure and technology.

Just Cashflow specialises in credit facilities for small businesses. It funds loans using both its own balance sheet – which it tops up with bonds listed on the Irish Stock Exchange (GEM) – and institutional cash.

The company itself is unusually listed on both the Cyprus Stock Exchange and the Vienna Stock Exchange. It has lent a little over £80m to date, including £39m this year.

Founder and CEO John Davies says the firm’s originations have grown by over 300 per cent in the past two years, and the platform is now lending over £1m a week. He says that capital losses to date stand at just 0.2 per cent of the overall loanbook. 

Davies identified a focus on real-time information, as well as historical credit data, as giving Just Cashflow a competitive edge in the market. The firm also pays a lot of attention, both through its people and its tech, to affordability.

“We are delighted to now be delivering operating profits and to have established such firm foundations that will underpin our future growth and ambition to support well run SMEs. This growth will come from supporting our own customers through a dedicated Business Growth Team and continually innovating flexible finance facilities to new customers,” said Davies.