Momenta Finance secures £100m Lloyds warehouse facility with £100m accordion

Momenta Finance has secured a £100m senior warehouse facility from Lloyds, with an option to increase the arrangement by a further £100m, strengthening the UK alternative lender’s capacity to provide unsecured business loans to small and medium-sized enterprises.

The new facility provides £100m of initial funding capacity, with total potential capacity of £200m if the additional accordion is activated. The distinction is significant because the optional increase should not be treated as funding already committed or drawn.

Momenta will use the warehouse to finance unsecured business loans distributed through its broker network, supporting companies seeking funding for working capital, investment and expansion.

Unlike a conventional corporate revolving credit facility, a warehouse structure allows a lending business to finance loan origination through a wholesale funding arrangement. The structure can help a non-bank lender deploy capital without relying exclusively on its own balance sheet or equity funding.

The precise collateral arrangements, advance rates, interest margins and maturity of the new Lloyds facility have not been disclosed.

The transaction follows a series of funding agreements that have expanded Momenta’s access to institutional capital. It was previously reported that the lender secured a £125m forward-flow facility in February.

Momenta said it has secured more than £500m through facilities with banking and institutional partners since 2023. The Lloyds agreement adds a major UK banking counterparty to that funding platform.

The company, established in 2013, reports having lent more than £250m to over 2,500 businesses. Its products include unsecured business loans and real estate-backed lending, although the new warehouse is specifically intended to support unsecured SME finance.

Miray Muminoglu, Head of Securitised Products Group at Lloyds, said the bank regarded financing established non-bank lenders as an important part of its specialist finance and securitisation activities.

For Lloyds, the transaction provides exposure to SME lending through an intermediary with an established origination and underwriting platform.

For Momenta, the main benefit is greater flexibility to fund new loans and respond to demand through brokers.

The additional £100m option also creates a potential route for further expansion without requiring the company to establish an entirely separate funding arrangement, although its availability will depend on the applicable facility conditions.