UK: Juice secures £25M to bridge £22B SME funding gap with AI-driven lending, offering flexible, non-dilutive capital to small businesses
UK-based fintech company Juice has raised £25 million in funding to address the country’s £22 billion SME financing shortfall.
The investment, sourced from Paragon Bank and family offices Aern Capital and Falco Capital, will support Juice’s mission to provide flexible, non-dilutive capital to small and medium-sized enterprises (SMEs) through its AI-driven lending platform.
The funding comes at a critical time, as traditional bank lending to SMEs has declined significantly.
According to the British Business Bank, major banks’ gross lending to SMEs dropped by £1.3 billion year-over-year in Q1 2024.
This trend has led over 55% of SMEs to seek alternative financing options, highlighting the need for innovative solutions like Juice’s platform.
Juice’s CEO, Katherine Chan, emphasized the company’s commitment to empowering SME founders: “Our mission is to give SME founders not just capital, but the actionable insights and flexibility they need to grow their businesses sustainably.”
The platform leverages AI and real-time data to assess creditworthiness, offering on-demand credit lines with transparent, usage-based fees.
This approach allows businesses to access, repay, and re-access funds multiple times over a 24-month period, providing greater control compared to traditional loans.
With this new funding, Juice aims to expand its reach and impact, targeting a £100 million loan book and £25 million in annual turnover by 2028.
The company’s growth is expected to drive job creation, fuel innovation, and bolster the UK economy, particularly as capital investment in the UK lags behind France and Germany by 15%.
The Financial Conduct Authority’s recognition of the Standards of Lending Practice for SMEs under £25 million turnover creates a favorable regulatory environment for Juice.
Adherence to these standards, especially regarding fee transparency and vulnerability protocols, builds trust among SMEs disillusioned with traditional banking.
