Growth Street
Peer-to-peer business overdraft alternative for UK SMEs.
| Date | Investors | Amount | Round |
|---|---|---|---|
| - | investor | €0.0 | round |
| investor investor | €0.0 | round | |
| investor | €0.0 | round | |
| investor investor investor investor | €0.0 | round | |
* | £10.0m | Early VC | |
| Total Funding | 000k | ||
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Growth Street was a peer-to-peer lending platform that provided flexible financing to small and medium-sized enterprises (SMEs) in the United Kingdom. Founded in July 2014, the company offered a flagship product called GrowthLine, a revolving credit facility designed as an alternative to traditional bank overdrafts. The platform connected individual and institutional investors with businesses seeking working capital, offering loan amounts from £25,000 up to £2 million.
The business model centered on facilitating 30-day loans, which provided investors with liquidity at relatively short notice while offering SMEs ongoing access to funds. Growth Street utilized cloud-based software to analyze a business's financial data in real-time, integrating with accounting packages like Xero to make faster credit decisions. Revenue was generated by matching borrowers and lenders in a dynamic marketplace. For investors, the platform offered returns of up to 6.5% annually and featured a provision fund to mitigate losses from borrower defaults.
The company gained Appointed Representative status from the Financial Conduct Authority (FCA) in late 2016, which allowed it to open the platform to individual retail investors. By mid-2019, Growth Street had lent over £100 million and had ambitions to finance £1 billion of the UK's SME funding gap by 2022. However, the economic challenges presented by the COVID-19 pandemic severely impacted the business. In July 2020, after failing to secure the necessary institutional funding to remain sustainable, Growth Street announced it would enter a solvent wind-down. The company's affairs were fully wound up by January 2023, after successfully repaying all retail investors in full.
Keywords: peer-to-peer lending, SME finance, business overdraft alternative, revolving credit facility, P2P lending, GrowthLine, small business loans, UK fintech, invoice financing, working capital finance, solvent wind-down, financial technology, alternative finance, business lending, credit facility, investor platform, debt finance, SME funding, corporate finance, financial services