The UK SME lending market remains structurally underserved as high-street banks tighten credit appetite and apply increasingly rigid risk frameworks. Alternative lenders have stepped in to fill the gap, but many still face funding constraints that limit pricing competitiveness and loan tenors. Securing a £125m forward flow facility from a global investment bank gives Momenta Finance the institutional firepower to compete more directly with traditional lenders, while retaining the flexibility of a non-bank model. More importantly, lower headline rates and extended terms signal a maturing alternative finance sector, where capital markets funding is being used to deliver sharper pricing and scalable origination to SMEs navigating inflation, higher borrowing costs and uneven growth conditions.

Momenta Finance, a leading UK alternative lender, has today announced a significant evolution of its lending capabilities after closing a £125m forward flow facility from a leading global investment bank to enhance its exceptional institutional roster of funding partners.

This landmark transaction will enable Momenta to launch an innovative, streamlined tiered loan structure designed to scale origination across its core SME lending offering. The new structure complements Momenta’s existing product mix and helps bridge the gap left by high-street banks.

Momenta will now be able to offer loans with interest rates starting from just 7% per annum, alongside extended tenors. With this enhanced suite of products, the company is well positioned to compete more effectively with industry leaders in the SME lending space and to continue fulfilling its mission of being a leading provider of capital to the sector.