London-based specialist lender Simply Asset Finance has reached a significant milestone, posting a record annual revenue of £52.3 million for the fiscal year 2023, marking a remarkable 37% increase from the previous year.
This achievement underscores the growing trend of small and medium-sized enterprises (SMEs) seeking alternative financing options over traditional big banks.
Despite challenges, Simply Asset Finance maintained profitability for the third consecutive year, with a pre-tax profit of £5.5 million, albeit slightly lower than the £7.1 million reported in 2022. The firm’s loan book also saw substantial growth, expanding by 15% to reach £480 million in the past year. Since its establishment in 2017, Simply has facilitated financing for approximately 7,500 SMEs across Britain, with total loan origination to date standing at £1.3 billion.
Mike Randall, Chief Executive of Simply Asset Finance, attributed the company’s continued growth to the pressing need for improved access to business funding in the UK. Amid criticisms of high street banks for scaling back on small business lending and implementing restrictive practices, SMEs are increasingly turning to specialist lenders for support. According to UK Finance, the majority (59%) of SME lending now originates from outside traditional banking institutions.
Simply’s success is further exemplified by its inclusion in the Financial Times’ ranking of Europe’s 1,000 fastest-growing financial services businesses for three consecutive years, affirming its position as a leader in the industry. Randall highlighted the role of Simply’s “Simply Connect” technology platform in driving growth, which not only serves its own customers but also supports broker partners and integrates with lending partners as a white-labelled product.
Looking ahead, Randall expressed optimism for 2024, foreseeing a positive year for SME growth amidst increasing resilience and business optimism. Chief Financial Officer Stefan Wolvaardt echoed this sentiment, emphasizing the company’s positive profitability amidst a challenging economic landscape marked by high interest rates and double-digit inflation. As SMEs continue to navigate uncertainties, Simply Asset Finance remains committed to providing accessible funding solutions to support their growth aspirations.
