Bizcap lifts UK low-doc SME loan cap to GBP £300,000

Bizcap has increased the maximum size of its low-documentation business loans in the UK to GBP £300,000.

The non-bank lender said the change makes larger loans available with fewer documents than many traditional business lending processes. It said low-documentation loans focus on cash flow and revenue rather than extensive historical accounts.

Bizcap positions low-documentation finance for small and medium-sized enterprises that need funding quickly and may not have years of financial statements ready. The company said it can issue decisions in as little as three hours.

Low-doc shift

A low-doc loan, short for low-documentation loan, reduces the amount of paperwork required at application. Bizcap said it does not require "endless financial statements or tax returns" for this product. It also said it considers applicants with "imperfect credit histories".

The lender linked the product design to the way it assesses applications. Bizcap said it looks at business cash flow and revenue as part of its decision process. The company framed the approach as a way to make faster decisions than lenders that rely on years of accounts and tax documentation.

Bizcap said the increased cap reflected feedback from the UK SME market. It also described the move as part of its UK expansion.

"Lifting our low-doc loan limit to £300,000 is a direct response to what we're hearing from the SME market," said Albert Gahfi, Co-Founder and Co-CEO, Bizcap Global.

"Businesses want speed, flexibility and fewer barriers to access funding. This change means we can back more UK businesses with the capital they need to grow, without slowing them down with unnecessary paperwork," said Gahfi.

Market backdrop

Bizcap also pointed to how other lenders treat SME applications. It said some traditional lenders have increased documentation demands and tightened eligibility criteria.

"With many traditional lenders requesting more paperwork and introducing more hurdles for SMEs, Bizcap is deliberately making funding easier and more flexible. This ensures business owners can get the funding they need, when they need it, without delays or excessive documentation," said Sasha Berg, Bizcap UK Partner, Bizcap UK.

The company did not disclose how many UK businesses it has funded, its UK loan book size, or the pricing and term structure for the expanded low-doc product. Bizcap also did not state whether the new cap applies across sectors, or whether it varies by trading history and revenue profile.

Broker channel

Bizcap said the increased limit also affects brokers and partner firms that introduce SME borrowers. It said the change would allow brokers to place larger deals under the same low-documentation route.

"Our brokers and partners play a critical role in supporting UK SMEs, and this decision is designed with them in mind," said Rhys Cunnah, Chief Commercial Officer, Bizcap UK, Bizcap UK.

"By lifting the low-doc limit to £300,000, we're making it even easier for brokers to place deals quickly and confidently, helping them deliver fast, flexible funding solutions to their clients more efficiently than ever before," said Cunnah.

Bizcap operates as a non-bank lender and offers business funding across multiple markets including Australia, New Zealand, Singapore, Canada, the UK and Europe. In the US it trades as NewCo Capital Group.

The company said it was founded in 2019. It also said it has funded more than 66,000 SMEs globally, with total funding of USD $3 billion. Bizcap said it offers decisions in as little as three hours and provides same-day funding in some cases.

The lender said the higher low-doc cap forms part of its approach to SME finance in the UK. It also indicated it expects demand from businesses looking for quicker lending decisions and fewer documents to remain a feature of the market.