Specialist lender Simply Asset Finance has posted a record annual revenue as small and medium-sized enterprises (SMEs) turn away from big banks for funding.
The London-based firm reported revenue of £52.3m for its fiscal 2023, up 37 per cent from the previous year.
It remained in the black for the third year in a row, posting a pretax profit of £5.5m. This number was down from £7.1m in 2022.
Simply’s loan book swelled 15 per cent to £480m last year. Its loan origination to date stands at £1.3bn, with the firm helping to finance around 7,500 SMEs across Britain since its foundation in 2017.
Chief executive Mike Randall said Simply’s continued growth partly reflected “the need for better access to business funding in the UK for our customers”.
High street banks are facing criticism for pulling back from small business lending despite high demand and implementing “harsh” practices, prompting investigations by the Financial Conduct Authority and Treasury Committee.
The latter group last week accused banks and regulators of hamstringing growth by making borrowing more difficult, unfairly “debanking” legitimate firms and setting up an inadequate dispute resolution service.
SMEs are now increasingly turning to specialists, which have boomed in popularity in recent years. Trade body UK Finance found in March that the majority (59 per cent) of SME lending now comes from outside the big banks.
Simply has been listed in the Financial Times’ ranking of Europe’s 1,000 fastest-growing financial services businesses for three years straight, most recently coming in at 989th.
The firm said its growth last year was partly driven by its “Simply Connect” technology platform, which serves its own customers, broker partners and has been integrated by two lending partners as a white-labelled product.
“We are working hard to build a solution, and framework that sets the standard for small business lending in the UK – one that ensures every SME can get the money they need, when they need it to spur their growth,” Randall said.
“We’re seeing more and more signs of 2024 being a positive year for growth as SMEs demonstrate their resilience, business optimism is on the rise, and inflation is coming down.”
Chief financial officer Stefan Wolvaardt added: “Taking into account a year of high interest and double-digit inflation, we’re incredibly positive about the profits we have achieved at a time when every business has faced hardships.”