B-North has now ended and was successfully overfunded

B-North

FinTech Business - North West

B-North

About B-North

B-North is a fintech-enabled bank, combining cloud-native technology with the trust of face-to-face relationship banking to disrupt the £150bn UK SME Lending market.

Having raised seed capital of over £6.8m including a six figure investment from the Greater Manchester Combined Authority, B-North has used this to establish their core team and build both the lending and deposit-taking platforms, all whilst successfully completing their banking licence process subject to capital.

B-North has made considerable progress with its Series A round, with 93% of their £20m target committed, and this stub round will provide further cash runway to the end of Q2 2021 as the team finalise their Series A round and secure their banking license.

The Market

The UK business lending market currently has outstanding stock of £150bn with the demand for the delivery of bank debt support to SMEs rapidly evolving.

The British Business Bank estimates that there is a £48bn unmet demand for debt annually.

PSD 2 “Open Banking” is reducing the power of the current account relationship, with businesses increasingly being encouraged to consider alternative funding providers.

  • Lending relationships have been eroded over time.
  • Rigid centralised credit policies don’t fit SMEs (growth and scale-ups).
  • The lending process is painfully slow and bureaucratic.
  • More and more SMEs relationships are conducted through call centres.
  • Non-bank lenders are expensive.

This has been exacerbated by the market dislocation with existing lenders focused on collections and closed for new business.

B-North is focused on setting new standards for delivery and customer service in the SME marketplace, with highly experienced bankers supported by best in class technology.

The Company

B-North will focus on solid bankable SME lending opportunities in the £0.5m+ to £5M loan range.

The service will be delivered using the B-North’s Regional Pod model where each Pod contains the key decision makers to work with the Broker/SME customers to fully understand their borrowing requirements.

B-North’s delivery mechanism offers rapid initial credit decisions and simultaneous full approval, valuation and legal processes, which will provide customers with certainty, flexibility and fast access to funds, with time to cash predicted to be days or weeks rather than months.

The Team

B-North’s team have an unparalleled track record in gaining new banking licences and scaling SME banking businesses.

Find out more about the team and their track record →

The Plan

Key Investment Highlights

  • A rare and attractive opportunity to own a stake in a business about to bring to market a technology driven UK Bank focused on providing finance to scale-ups and SMEs.
  • Delivers cash to SMEs 10x faster than the competition through a combination of a world class lending origination platform (already built) together with a locally delivered servicing and relationship model by experienced bankers.
  • Unique Broker Programme ensures that B-North will be this channel’s partner of choice.
  • No legacy systems and no legacy loan book, factors that are massively impacting other players in the market.
  • Banking Licence to be granted subject to Series A funding
  • Highly experienced and ambitious management team.
  • Large, clearly defined, target market, poorly served by the High Street banks.
  • A platform that will deliver a fundamentally re-engineered and enhanced SME lending journey.

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Q/A

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Investors

£227,800 invested by 76 online investors
£656,035 invested by 54 Professional Investors.