Listed group takes £2m stake in online broker

AN online credit broker backed by the North West Fund has sold a near 30% stake to AIM-listed GLI Finance for £2m.

GLI Finance has invested £1.25m in Liverpool-based Funding Options in return for a 28.9% stake and £0.75m of preference shares in the business. Its chief executive, Geoff Miller, will also join Funding Options’ board.

Funding Options uses proprietary online technology to scan the alternative finance market for the most suitable funding options available for its clients.  It has helped UK SMEs to access tens of millions of pounds in funding. It has has applied to HM Treasury for designation as a “neutral platform”, which would mean that SMEs rejected for bank finance can be referred to it.

Conrad Ford, founder and chief executive of Funding Options said: “We are excited to be partnering with GLI and Geoff’s team. Our vision is to be a one-stop-shop for small businesses with financing needs, no matter how challenging, urgent or unusual.

“We look forward to working with the GLI family of investments, finding synergies and learning from their deep understanding of the alternative finance sector, both in the UK and globally.”

David Smith, investment director, AXM Venture Capital, which manages The North West Fund for Digital & Creative, added: “We are delighted that GLI Finance shares our vision for Funding Options, and by the prospects for accelerated growth created by their support.”

Geoff Miller, chief executive of GLI Finance said: “Funding Options is a great business using sophisticated matchmaking technology alongside expert support and I am delighted to welcome them to the GLI family.

“Funding Options exemplifies how brokered alternative finance can be invaluable for small businesses trying to navigate an ever expanding range of financers, having referred UK SMEs to more than 50 alternative lenders in the past year.”