WHY THIS MATTERS:
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.
New Leadership Driving Growth
This major strategic milestone is delivered under the guidance of Momenta’s recently appointed executive leadership team, who are steering the company on its ambitious growth journey.
Tim Boag, who assumed the role of Chief Executive Officer in 2025, brings over 35 years of financial services experience. His career includes senior positions at RBS and NatWest, and most recently, he served as Group Managing Director of Business Finance at Aldermore Bank.
His vision to scale the platform is supported by Chris Forrest, the recently appointed Chief Commercial Officer. Formerly Head of SME at Barclays UK, Chris’s deep expertise in funding SMEs is central to Momenta’s strategy of strengthening intermediary relationships and expanding distribution.
Tim Boag, CEO of Momenta Finance said: “This is a pivotal moment for Momenta Finance and, more importantly, for the brokers and SMEs we serve. We are delivering institutional power with the agility of an alternative lender, ensuring that UK businesses can access the right capital, at the right price, exactly when they need it.”
Additionally, Jonathan Stern, Chief Financial Officer at Momenta Finance, said:
“This new facility represents an important step forward in Momenta’s growth journey and directly supports our strategic ambition to become an alternative lender across multiple SME-focused products with an exceptional roster of institutional funding partners.”
Streamlined Operations for Brokers
The launch reinforces Momenta’s position as a broker-centric lender. The new structure utilises a single-application workflow, removing the need for brokers to pre-judge a client’s eligibility. Momenta will assess the application and offer the most competitive tier available based on the trading history and asset profile.
FF NEWS TAKE:
This is more than a funding announcement — it’s a positioning play. By combining institutional backing with broker-led distribution and simplified underwriting workflows, Momenta is aiming to narrow the gap between challenger lenders and incumbents. The real differentiator will be execution: sustaining competitive SME loan pricing while maintaining credit discipline. If managed well, this model could become a blueprint for how alternative lenders scale responsibly in a post-rate-hike environment.
Read the orginal article: https://ffnews.com/newsarticle/funding/momenta-finance-launches-major-uplift-to-its-lending-capability-with-125m-facility/
