LHV gets banking licence to write £500K business loans

The Manchester-based office of Estonian bank LHV has been approved by the Financial Conduct Authority to issue loans to small and medium sized businesses.

In October, LHV UK acquired the SME lending business of Manchester-based regional lender Bank North for £19m, including its £17.9 million loan book, 20 sales and support staff and cooperation agreements with major loan brokers. Since the acquisition, LHV UK has only been able to service the existing customers, but the today’s approval means the bank can immediately start offering property-backed loans starting from £500,000.

The team, based in Manchester, form LHV UK’s SME lending business and will maintain its regional approach and commit to further developing relationships with local commercial brokers, who are the key drivers for the loan business.

Madis Toomsalu, chairman of LHV UK, said: “Lending to enterprises has been the core business area of our parent company LHV Group, where it enjoyed 14 years of consecutive growth. There is a strong proven demand for SME loans, and we are confident that by leveraging our considerable experience and readily available capital, LHV UK can quickly establish and grow a strong lending business. Our strengths are technology-powered faster lending process and loan managers with long-term experience who understand the needs of local entrepreneurs.”