OakNorth Bank has issued loans exceeding £886m to UK businesses in the first half of 2023.
This move is part of its ongoing mission to support the country’s “Missing Middle,” a term referring to established small-to-medium enterprises (SMEs) that often find themselves neglected or underserved by traditional banks and alternative lenders.
With a unique lending methodology that involves a detailed, forward-looking assessment of performance and risk, OakNorth is able to effectively comprehend and cater to its customers throughout the entire loan lifecycle.
This approach has facilitated continued confident lending amidst a backdrop where many incumbent banks and alternative lenders are shrinking their involvement in the SME lending market.
OakNorth’s financial support has led to several notable successes in the first half of the year. Among them, the company helped finance the growth plans of leading UK hospitality and pub group Heartwood Collection, offered a £3m loan to LDC-backed e-learning software company, Omniplex Learning, for the development of its new St. Alban’s headquarters, and supplied a £37m facility to Somerset-based independent self-storage provider, UK Storage Company, in support of a management buyout.
Ben Barbanel, head of debt finance at OakNorth Bank, said: “The UK’s Missing Middle continues to be the backbone of our economy, so fueling their growth ambitions is crucial for enabling the country to overcome the current economic challenges” He went on to criticise incumbent banks and alternative lenders for their fair-weather behaviour, supporting customers only during economically prosperous times.
Barbanel assured businesses: “With the current cost-of-living crisis set to continue well into next year, we want to reassure businesses that we’re here to support them whether they need debt for growth, M&A, a management buy-out or buy-in, working capital or anything else.”
