As UK SMEs face a growing £22 billion funding shortfall, over half are turning away from high street banks. With gross SME lending from major banks dropping by £1.3 billion in Q1 2024, a pressing need has emerged for new, agile funding solutions. Addressing this gap, fintech innovator Juice has raised £25 million in fresh investment, aiming to empower SMEs with flexible, founder-friendly finance.
This funding round—backed by Paragon Bank, Aern Capital, and Falco Capital—marks a strategic step forward for Juice. The company, led by co-founder and CEO Katherine Chan, is on a mission to transform SME lending with data-driven, non-dilutive capital that puts founders in control.
“This funding is more than capital—it’s confidence,” said Chan. “With our partners’ support, we’re scaling a transparent, founder-focused model that helps UK SMEs grow on their terms.”
A Smarter Alternative for UK SME Lending
Juice was born out of frustration with the slow, rigid funding processes of traditional banks. Chan’s background in corporate banking revealed inefficiencies that stifled SME growth. Juice now offers a flexible funding solution—revolving credit lines with usage-based fees, no equity loss, and rapid access to capital in under 24 hours.
Unlike conventional term loans, Juice’s approach provides ongoing access to funds. Businesses can borrow, repay, and re-access credit over 24 months, offering financial agility that matches modern business needs.
Juice’s real advantage lies in its AI-powered platform, which uses real-time financial data to assess risk and approve funding. This ensures faster, fairer access to credit, especially for e-commerce and digital-first businesses navigating unpredictable cash flows.
Fueling SME Growth in a Tough Economy
Juice’s £25M investment arrives at a critical time for UK entrepreneurs. As capital investment lags 15% behind France and Germany, access to fast, flexible funding can spark job creation and innovation. Juice plans to grow its loan book to £100 million and reach £25M in annual turnover by 2028.
This model has already driven 945% growth for the company in three years, earning it a spot on the 2024 Deloitte UK Technology Fast 50. Juice is becoming a lifeline for high-growth SMEs locked out of traditional finance.
This funding round attracted continued support from early investor Falco Capital, with new backing from Aern Capital and a crucial credit facility from Paragon Bank. The partnership marks a vote of confidence in Juice’s ability to reshape SME finance.
“Juice offers a game-changing product,” said Stephen Routledge of Aern Capital. “Their non-dilutive, data-led model gives fast-growing businesses a smart, alternative path to capital.”
Paragon Bank’s Lewis Fitzsimons added: “We’re proud to support Juice as they provide much-needed funding to e-commerce and digital SMEs—businesses that are vital to the UK economy.”
Scaling Impact with Responsible Lending
Juice’s lending aligns with the FCA’s Standards of Lending Practice, focusing on transparency, fair fees, and protections for vulnerable businesses. Its Growth Hub and founder community also offer strategic insights, peer support, and educational tools, helping founders make smarter funding decisions.
Looking ahead, Juice aims to extend its reach to underserved regions like Northern Ireland, where 62% of SMEs report difficulty accessing finance. The company also plans to navigate evolving regulations, including Basel III capital rules, while staying true to its founder-first values.
Juice’s model represents the next evolution of fintech—moving beyond simple transactions to become an embedded financial partner. With major UK banks retreating from SME lending, Juice is stepping up with a proven, scalable solution.
As Chancellor Rachel Reeves calls for improved SME lending, the Juice investment demonstrates what’s possible when innovation meets opportunity. By prioritizing speed, transparency, and control, Juice is setting a new standard for how UK businesses access the capital they need to grow.
