In the UK, SMEs are grappling with a pressing funding gap of £22 billion, compelling over 55% of businesses to seek lending alternatives outside traditional high street banks. The British Business Bank’s report of a £1.3 billion year-over-year drop in major banks’ gross lending to SMEs in Q1 2024 underscores the severity of the situation. This trend, echoed by 77% of brokers reporting reduced bank appetite for SME loans, has prompted Chancellor Rachel Reeves to schedule meetings with banks to address these lending constraints, which pose significant risks to the UK economy. The need for immediate and effective alternative funding solutions for SMEs and e-commerce companies has never been more critical.
Fintech company Juice has secured a £25 million funding round from Paragon Bank and family offices Aern Capital and Falco Capital, backed by a Paragon Bank credit line. This funding will support SME founders through the current economic uncertainty, democratising finance by providing them with essential capital and confidence to pursue their growth ambitions.
CEO of Juice, Katherine Chan, highlighted the milestone this funding round signals for Juice: “This funding round represents a critical step for Juice. Our mission is to give SME founders not just capital, but the actionable insights and flexibility they need to grow their businesses sustainably. Thanks to our partners at Paragon Bank, Aern Capital, and Falco Capital, we’re positioned to improve how UK SMEs access finance, providing speed, transparency, and genuine founder-focused solutions. With this funding, Juice has an exciting future ahead of it, as it takes one step closer to becoming one of the largest SME funders in the UK, empowering thousands of founders with the capital and confidence to achieve their ambitions.”
The impact of Juice’s raise is significant: it unlocks growth capital for thousands of UK high-growth businesses facing liquidity constraints. This investment will drive job creation, fuel innovation, and bolster the UK economy at a time when capital investment in the UK lags behind France and Germany by 15%. The successful funding round positions Juice to achieve a £100M loan book with £25M annual turnover by 2028.
Building a founder-first funding alternative
Juice, a UK fintech company, specialises in providing innovative funding options for SMEs. Co-founder Katherine Chan transitioned from corporate banking to fintech entrepreneurship after recognising the persistent funding challenges facing UK SMEs. Her banking experience revealed the inefficiencies and rigidity of traditional finance, inspiring her to create a more accessible, tech-driven solution for SME financing.
Juice emerged as a solution to the obstacles faced by SMEs and e-commerce founders when seeking flexible, non-dilutive capital. The founders recognised that traditional funding sources often impose restrictive terms, hidden fees, or require equity sacrifice, hampering growth potential. Juice offers an innovative, founder-friendly alternative that helps businesses overcome short-term challenges while building long-term success.
Juice’s core mission is to fuel UK SME and e-commerce growth through flexible, on-demand credit lines, non-dilutive funding, and transparent, usage-based fees. The company aims to become the go-to funding partner for UK SMEs and e-commerce businesses, enabling confident scaling without sacrificing equity or control. Juice fosters a dynamic ecosystem of founder-led companies ready to seize market opportunities by combining capital with practical insights.
Behind Juice: AI-powered, data-driven funding
Juice stands out in fintech by leveraging AI and real-time data to deliver customised, flexible funding solutions for UK SMEs and e-commerce businesses. The AI technology is used to assess risk, determine creditworthiness, and provide real-time insights into a business’s financial health. Their technology enables swift capital access, with founders able to withdraw, repay, and re-access funds multiple times over 24 months, offering greater control and flexibility than traditional loans.
Unlike conventional term loans, Juice offers a revolving credit line. This unique feature allows businesses to draw funds as needed, repay at their own pace, and re-borrow, making it ideal for managing cash flow and responding to market opportunities. The flexibility of this credit line can be a game-changer for SMEs, providing them with the financial agility they need to navigate the ups and downs of business operations.
Juice’s funding solutions preserve founder ownership and control, requiring no equity sacrifice. Using artificial intelligence and real-time data for risk assessment, the platform approves funding quickly, reducing friction and wait times compared to traditional lenders (under 24 hours versus the typical 4–6 weeks for banks).
Beyond capital provision, Juice’s Growth Hub and community-driven approach give founders access to strategic guidance, peer support, and educational resources, enabling smarter funding decisions and effective scaling.
This innovative approach has driven Juice’s remarkable 945% growth over three years, earning recognition among the UK’s fastest-growing technology companies in the 2024 Deloitte UK Technology Fast 50. The model’s success is evident in outcomes: similar fintech lending approaches in Europe have helped SMEs achieve 150% asset growth and 52% employment growth within three years.
Expanding horizons: New partnerships and plans
The Financial Conduct Authority’s recognition of the Standards of Lending Practice for SMEs under £25 million turnover creates an ideal regulatory environment for Juice. Adherence to these standards, particularly regarding fee transparency and vulnerability protocols, builds trust among SMEs disillusioned with traditional banking.
The funding announcement follows several successful partnerships. Original investor Falco Capital joined the raise alongside new investor Aern Capital, whose participation stems from Juice’s innovative use of technology and data to provide a compelling alternative to dilutive equity investments. A new banking partnership with Paragon Bank supports the round.
Lewis Fitzsimons, Managing Director of Paragon Bank’s Structured Lending Division, added: “It’s been a pleasure to assist Juice Ventures with a committed facility to enable Katherine and her team to continue supporting SME businesses operating in the e-commerce and digital space. Their work with SME businesses is vital to the British economy, so Paragon is excited to partner with Juice through its next growth phase.”
Stephen Routledge at Aern Capital added: “When I was first presented with the Juice product and understood its unique position in the marketplace, I was left extremely impressed. Its approach to providing an alternative method of securing growth capital and non-dilutive investment is extremely unique, and I believe it could be a major benefit to fast-growing businesses. I knew we had to get involved, showing our support and assistance by providing substantial equity and debt finance, and we’re delighted for Juice to be partnering with Paragon Bank in this next exciting phase of their journey.”
Richard Anderson, Managing Director of family office Falco, concluded: “Falco investors were early-stage investors in Juice and have continued to support the business throughout. Growth capital for early-stage businesses has always been a challenge in the UK, with a more conservative venture capital industry than the US and a traditional lending market focused on asset security and personal guarantees. A Juice loan fills this gap, adding real-time data analytics and control of online payment systems to traditional credit analysis techniques. The deal with Paragon is only the start, and we look forward to continuing to support the company on its growth journey.”
Juice’s model exemplifies the Fintech 3.0 paradigm, evolving beyond transactional lending to become an embedded financial partner. As Chancellor Rachel Reeves urges banks to revive SME lending, Juice’s success demonstrates the viability of data-driven, equity-preserving solutions. Looking ahead, the company faces challenges in navigating Basel III capital requirements and expanding into underserved regions like Northern Ireland, where 62% of SMEs lack affordable financing options.
