Lenkie, a cashflow management platform, has raised £49 million in Series A funding to tackle the UK’s growing SME funding shortfall. The investment, which includes £4 million in equity and a £45 million debt facility, will fuel Lenkie’s mission to provide fast, flexible financing for small businesses struggling with cashflow constraints.

The funding round was led by a major US private credit fund specialising in international lending, as traditional banks continue to withdraw from SME financing, leaving a £22 billion gap in the market.

A New Model for SME Financing

Unlike conventional lending models that require businesses to secure loans upfront, Lenkie focuses on payables financing—paying suppliers directly on behalf of SMEs at the start of a transaction. This approach ensures that growing businesses can invest in stock, subcontractor payments, and equipment before making a sale, eliminating a key barrier to scaling up.

Traditional SME lending often involves slow approval processes and outdated credit assessments, leaving many viable businesses underserved. Lenkie aims to change this by leveraging real-time performance data and proprietary underwriting technology to offer tailored financing solutions with faster approvals.

“At its core, all lending is built on a foundation of trust. We’re able to use data and technology to understand the nuances of each business to build that trust in seconds,” said Sanjeev Jeyakumar, CEO and co-founder of Lenkie. “By financing specific transactions, we’re creating a new model of financial inclusion that aligns with how modern businesses operate and grow.”

Strong Market Traction

Since its launch in 2021, Lenkie has funded over £70 million to SMEs, facilitating payments to 2,000 suppliers across 40 countries. The company’s success is built on its ability to de-risk financing by using real-time data, a strategy honed by Jeyakumar’s experience as a former Citigroup credit trader, where he structured over £2 billion in lending across emerging markets.

SMEs account for 60% of employment and 50% of GDP in the UK, yet many still struggle to access the capital they need. With demand for alternative financing solutions at an all-time high, Lenkie’s transaction-based funding model is gaining traction as a more cost-effective and scalable alternative to traditional loans.

Driving Growth for SMEs

For many businesses, Lenkie’s approach has been a game-changer.

“At the heart of our business is the need to invest in stock, reach new customers, and improve supplier relationships. Lenkie’s credit facility has been critical in enabling us to achieve all three. Their outstanding service and continuous product innovations ensure an excellent user experience,” said Ankit Monga, from Mongas Kids Wear Limited.

Future Expansion Plans

With fresh capital in hand, Lenkie plans to enhance its data-driven underwriting models, expand partnerships, and explore new markets. By removing funding barriers, the company is not just helping SMEs survive but empowering a new wave of entrepreneurs to scale their businesses with confidence.