LHV Group is the largest domestic financial group and capital provider in Estonia, with subsidiaries LHV Pank, LHV Varahaldus, and LHV Kindlustus

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LHV UK to offer SME loans in the UK. (Credit: Towfiqu barbhuiya on Unsplash)

LHV UK Limited, a subsidiary of AS LHV Group, was registered in the Financial Conduct Authority’s financial services register on 29 November 2022 and thereby gained the right to start issuing SME loans in the United Kingdom. On 19 December 2022, LHV UK’s Board approved commencing loan activities.

As of today, LHV UK started issuing SME loans in the UK. Commercial term loans starting from the amount of 0.5 million pounds will are aimed at small and medium-sized enterprises (SMEs) and secured by commercial real estate and other guarantees.

The acquisition of Manchester-based Bank North’s loan business in October provided a strong platform for commencing the loan activity. As a result of the transaction, LHV UK acquired an SME loan portfolio of approximately £17.9 million, 20 sales and customer service, credit analysis and IT employees, modern loan management software and cooperation agreements with major loan brokers.

LHV UK’s main sales channel for business loans are loan brokers. Lending operations will begin in and around Manchester, but in the future, there are plans to create an additional sales and customer service team in London.

Comments by Madis Toomsalu, CEO of LHV Group: “Lending to enterprises has been the core business activity of LHV. We are beginning our loan activity now because we believe a new entrant can grow a lending business against such strong demand. Our strengths are a faster lending process and loan managers with long-term experience who understand the needs of local entrepreneurs. Starting with business loans now allows us to accelerate our current UK plans significantly.”

LHV UK’s growth plans in the UK are underpinned by three business lines: providing banking services for financial intermediaries, SME lending and banking services for e-merchants. LHV UK is currently focused on obtaining a banking licence. LHV UK’s banking licence is subject to regulatory approval by the Prudential Regulatory Authority and Financial Conduct Authority

Source: Company Press Release