Open Banking-powered lender is aiming to lend £100m in the next 12 months.
Outfund, a lender which uses Open Banking to lend against the revenues of small online businesses, has secured £37m in seed funding.
At the moment Outfund offers SMEs which trade online up to £2m in funding, which they access by connecting their primary revenue bank account to Outfund by open banking.
Repayments are based on a revenue share with Outfund, which is a flexible percentage based on trading activity.
“Our ambition is for Outfund to be the place to go to grow your business without compromising your equity or wasting time fundraising. This is why we have spent time developing a way to make the process of securing money for growth easier, fairer and most importantly, faster,” said founder and CEO Daniel Lipinski.
“Our approach has been warmly received by founders and directors alike and so now we’re looking at how we can open this up to more businesses and continue to be part of their journey to success for a long time.”
Outfund only lends to borrowers with at least six months of trading history and a minimum of £10,000 in monthly turnover.
According to Lipinski, Outfund is also working on new lending products including working capital and revolving credit, as well as expanding the team.