OakNorth will offer short-term working capital loans and term loans on a flexible basis to growing SMEs which will use advanced financial technology which will allow for a faster service.
The bank is founded and backed by Rishi Khosla and Joel Perlman who are currently transitioning out of Copal Amba which they previously founded and developed into a 2,500 employee global brand.
OakNorth will accept multiple collateral types not just property, unlike much of the secured lending offered to SMEs by major banks.
“Growth companies provide half of all employment growth in Britain, but have been neglected by banks in favour of big business," said Rishi Khosla.
"When smaller growth companies have tried to access loans, they have often been refused, required security against property or been served at a glacial pace.
“That’s why we’re launching OakNorth – to use financial technology and a new approach to lending that gives smaller growth companies a banking service one would normally associate with larger corporate clients.”
Term loans will be offered through Relationship Managers at regional offices, in London and Manchester and the model is designed so customers don’t need to sacrifice speed of application and likelihood of success to access a good rate.
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