Funding Friends

What Funding Friends does

Funding Friends Ltd is a UK-based commercial finance brokerage founded in 2020 and headquartered at 207 Regent Street, London. The firm is authorised and regulated by the Financial Conduct Authority (FRN: 935775) and is a member of the National Association of Commercial Finance Brokers (NACFB). Its function is to act as an intermediary between UK small and medium-sized enterprises, property investors and a panel of lenders, matching them with funding solutions ranging from £10,000 to over £2 million. The product catalogue spans 40+ funding lines including property finance (bridging, commercial mortgages, buy-to-let, development finance, holiday lets), cashflow solutions (invoice finance, working capital, unsecured lending, asset-based lending), change-of-ownership transactions (MBOs, private equity, venture finance) and 13 industry-specific verticals covering hospitality, healthcare, dentistry, pharmacy, veterinary, retail, professional services and transport/logistics.

The business is led by two Directors — CEO Jonathan Rostron and Executive Chair Damian McGann — supported by a distributed team of approximately 17 Authorised Representatives located across the UK (London, Sheffield, Manchester, York, Morpeth, Bristol/Wiltshire, Surrey, South West England, North East England and North East Scotland), collectively bringing over 140 years of senior banking experience from HSBC, RBS/NatWest, Santander, Shawbrook, Lloyds, Barclays and Bank of Scotland. Customers initiate engagement via an online funding form, followed by consultation with a Funding Friend, after which the team approaches its lender panel on the customer's behalf and supports the transaction through to drawdown. Revenue is generated through three streams: client-paid fees (initial assessment, appraisal, offer and success fees), lender commissions (fixed fee, fixed rate, percentage of borrowings, or rate-for-risk), and pass-through arrangement fees from lenders. The technology stack is light — electronic documentation, e-signatures and JotForm-based intake — with no proprietary platform, AI/ML capabilities or public API. Distribution occurs through the AR network, the Funding Friends website and an active content-marketing programme ("Friends In The Know") that has featured co-marketing partnerships with Praetura Asset Finance, Bank Leumi UK, Cambridge & Counties Bank, BOOST&Co, Graham & Sibbald and Hospitality Options Ltd. The firm holds a 5-star Trustpilot rating and received a Lifetime Achievement Award for Andy Stobbart at the 2021 Sheffield City Region Insider Dealmakers Awards.

Name

Funding Friends

Legal name

Funding Friends Ltd

Website

https://fundingfriends.co.uk

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

11–50 employees

Short description

Funding Friends Ltd is a UK-based, FCA-authorised commercial finance broker connecting SMEs and property investors with lenders across 40+ funding products. The firm operates via a national network of 17 Authorised Representatives and earns revenue through client fees and lender commissions.

Ownership category

akta.pro rank

Headquarters

HQ city

London

HQ country

United Kingdom

HQ region

Europe

Offices9 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D, Infrastructure, Others

Revenue model

1. Brokerage/Success Fees from Clients: Funding Friends charges clients an initial assessment fee for time spent on proposals and lender engagement, an appraisal fee for shaping proposals, an offer fee at point of offer from lender (payable whether client proceeds or not), and a success fee upon drawdown of funding. Fee structures are tailored to the complexity of the transaction and disclosed upfront in the Terms of Business.
2. Commission from Lenders: Funding Friends receives commission from lenders within their panel for introductions. Commission models include fixed fee, fixed rate of commission, percentage of amount borrowed, and rate for risk. Commission is disclosed in the Statement of Suitability issued to clients. Some lenders do not pay commission.
3. Arrangement Fees (passed through from Lenders): Fees charged by lenders for providing a loan, typically as a percentage of funding provided. Arrangement fees vary by product type and lender; for bridging loans can be up to 3%. Early termination fees may also be charged by lenders.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

Funding Friends is a UK commercial finance broker that connects SMEs and property investors with a panel of lenders across 40+ distinct funding products, including property finance (bridging loans, commercial mortgages, buy-to-let, development finance, holiday let, HMO, refurbishment, auction), cashflow and working capital (invoice finance, asset-based lending, unsecured loans, cashflow loans, VAT loans, government-backed schemes), asset finance, and change-of-ownership solutions (MBO, private equity, venture finance). The company operates as a trading style of Funding Friends Ltd (FCA-authorised, FRN 935775), earning client-side brokerage fees and lender commissions for facilitating introductions across the UK.

Product overview

Funding Friends is a UK-based commercial finance brokerage operating as a single integrated platform that connects businesses with a panel of lenders across 40+ distinct funding products. The core offering consists of three main product clusters: Property Funding (including Bridging Loans, Commercial Mortgages, Buy-to-Let, Development Finance, Holiday Let, HMO Finance, and Asset Finance), Cashflow & Working Capital Products (including Invoice Finance, Asset Based Lending, Unsecured Loans, Cashflow Loans, Working Capital Loans, VAT Loans, and Merchant Cash Advance), and Change of Ownership solutions (including MBO Finance, Private Equity Finance, and Venture Finance). Additionally, the company offers 13 industry-specific financing products covering Hospitality (Hotels, Holiday Parks, B&B/Guest Houses), Medical (Care/Nursing Homes, Dentistry, Pharmacy, Veterinary), Professional Services (Funeral Parlour, Nursery/Childcare, Retail, Professional Practices), and Primary Industries (Agricultural Land, Manufacturing, Transport/Logistics). The platform differentiates through relationship-based advisory services delivered by experienced finance professionals, electronic documentation and e-signature capabilities, and access to an extensive lender network.

Differentiator

Problem solved

Functional benefit

Products and services

• Bridging Loans Short-term secured loans used to bridge funding gaps during property transactions or renovations, typically with higher interest rates and faster approval than traditional mortgages. Targeted at UK property investors and developers.
• Buy To Let Mortgages designed for investors purchasing residential properties to rent out, typically requiring higher deposits and considering rental income for affordability. For UK property investors and buy-to-let landlords.
• Commercial Mortgages Loans secured against commercial property for business purposes, with terms typically ranging from 3-25 years and rates tied to commercial lending benchmarks. For UK SMEs and commercial property buyers.
• Commercial Investment Property Financing for the acquisition or refinancing of commercial properties held as investments, including retail, office, and industrial premises. For UK commercial property investors.
• Asset Finance Financing solutions including Hire Purchase, Finance Lease, and Operating Lease for acquiring equipment, vehicles, IT systems, or business fit-outs while preserving cash flow. For UK SMEs needing equipment or vehicle finance.
• Invoice Finance Cash flow solutions including Invoice Discounting, Factoring, and CHOCS that unlock cash tied up in unpaid invoices by advancing 80-95% of invoice value upfront. For UK SMEs with 30-90 day payment terms.
• Asset Based Lending Structured lending facilities using business assets (debtor books, property, plant/machinery, stock) as security, typically suited to businesses with turnover of £2.5m+ and borrowing needs over £1m.
• Unsecured Loans Short-term business loans from £5k to £250k without specific asset security, typically requiring personal guarantees, with repayment periods of 6 months to 5 years. For UK SMEs needing fast, collateral-free funding.
• Development Finance Specialist funding for property development projects, including land acquisition and construction costs, typically structured as short-term facilities with exit-focused repayments. For UK property developers.
• Holiday Let Specialist mortgages for properties marketed as holiday accommodations, often with higher rental income calculations than standard buy-to-let. For UK investors in the holiday let market.
• Refurbishment Loans Funding for property renovation and improvement projects, often structured to accommodate the unique cash flow patterns of refurbishment work. For UK property investors and developers.
• Auction Property Financing Finance solutions for properties purchased at auction, typically requiring faster completion timelines and specialised underwriting. For UK auction property buyers.
• HMO Finance Mortgages for Houses in Multiple Occupation, typically with more complex licensing requirements and higher rental income potential than standard residential lets. For UK HMO landlords.
• Personal Mortgages Residential mortgage products for individuals, typically referred to third-party brokers as Funding Friends focuses on commercial finance.
• Cashflow Loans Working capital facilities designed to improve business cash flow, often structured as short to medium-term facilities. For UK SMEs needing cashflow support.
• Government Loans Access to government-backed schemes including CBILS, Bounce Back loans, and Recovery Loan Scheme, with funding facilitated through the broker. For UK SMEs seeking government-backed finance.
• VAT Loans Short-term funding to cover VAT liabilities, helping businesses manage cash flow when large VAT payments are due. For UK SMEs with quarterly VAT obligations.
• Working Capital Loans Facilities designed to fund day-to-day operational needs, covering expenses like payroll, inventory, and operating costs. For UK SMEs.
• Merchant Cash Advance Advance funding repaid through a percentage of future card sales, suitable for businesses with significant card transaction volumes. For UK retail and hospitality SMEs.
• Private Equity Finance Equity investment solutions for businesses seeking growth capital, typically involving ownership stakes and active investor involvement. For UK SMEs in growth or transition phases.
• Venture Finance Loans Funding solutions for early-stage and growth-stage businesses, often combined with venture debt structures. For UK SMEs seeking growth capital.
• MBO Finance Management Buy-Out financing structured to support existing management teams in acquiring the businesses they operate. For UK management teams and business owners.
• Trade Finance Financing solutions for international and domestic trade transactions, including letters of credit and supply chain finance. For UK businesses with trade activities.
• Pension Lending Finance solutions allowing business owners to leverage pension funds for property investment or business growth. For UK business owners.
• Hotels Funding Specialist financing for hotels, apart hotels, boutique hotels, budget hotels, mid-market hotels, luxury hotels, and serviced apartments, including loan amortisation up to 30 years and leverage up to 9x EBITDA. For UK hotel operators and investors.
• Holiday Parks Funding Financing for purchase and refinance of holiday and residential parks, with typical LTVs of 50-75% and debt service coverage requirements of 125%. For UK holiday park operators and investors.
• B&B / Guest House Funding Specialist mortgages for bed and breakfast and guest house purchases/refinances, typically up to 60% LTV with interest-only options. For UK B&B and guest house operators.
• Care / Nursing Home Funding Financing for care homes and nursing facilities, typically with 50-60% LTV and debt service cover ratios of around 175%. For UK care home and nursing home operators.
• Dentist Funding Comprehensive funding solutions for dental practices including commercial mortgages, equipment finance, and practice acquisition. For UK dental practice owners and acquirers.
• Pharmacy Funding Specialist funding for pharmacy practices including premises, practice purchases, partner buy-ins/outs, equipment, and stock loans. For UK pharmacy owners and acquirers.
• Veterinary Funding Finance solutions for veterinary practices covering premises, equipment, and practice acquisition. For UK veterinary practice owners and acquirers.
• Funeral Parlour Funding Specialist financing for funeral businesses including premises mortgages and specialist vehicle finance. For UK funeral parlour operators.
• Nursery / Childcare Funding Funding solutions for nursery schools and childcare facilities including premises purchase and equipment finance. For UK nursery and childcare operators.
• Retail Finance Tailored funding for retail businesses including premises purchase, fit-out costs, working capital, and stock loans. For UK high street and shopping destination retailers.
• Professional Practices Funding Financing for law, accountancy, and architecture firms including working capital, partnership buy-ins, and premises acquisition. For UK professional services firms.
• Agricultural Land Funding Specialist funding for agricultural land purchases and farm business development. For UK agricultural operators and landowners.
• Manufacturing Finance Funding solutions for manufacturing businesses covering premises, equipment, and working capital needs. For UK manufacturers.
• Transport & Logistics Finance Comprehensive funding for transport and logistics businesses including vehicle finance, warehousing, and working capital. For UK hauliers, fleet operators, and logistics businesses.

Named customers2 records

Segments12 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Two partnerships are on record, tiered minor and core.

• Graham and SibbaldminorStrategic or Co-development Partner · 13 December 2021Graham and Sibbald is a firm of chartered surveyors and property consultants with a Hotels and Leisure division. Director Martin Davis contributed to Funding Friends' holiday let market blog, providing market outlook and investor advice. The firm offers valuation, agency brokerage, planning, rating, and sustainability advice.
• Hospitality Options LtdcoreStrategic or Co-development Partner · 6 August 2021Hospitality Options Ltd is a strategic advisor to hospitality businesses, providing 'healthcheck' services to management teams. Managing Director Mark Butler contributed to Funding Friends' hotel sector blog with market perspective on staycation trends, corporate hotel recovery, and operational excellence. Damian McGann noted hospitality as a key sector for Funding Friends.

Scale indicators5 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Christie & Co: Christie & Co is a UK specialist business advisory and brokerage firm focused on hospitality, healthcare, childcare, and medical sectors — a direct competitor to Funding Friends' sector-specific finance brokerage, particularly for hotels, care homes, dental, and pharmacy deals.
• Rangewell: Rangewell is a UK commercial finance broker that helps SMEs and property investors source funding from a panel of lenders. It competes directly with Funding Friends across asset finance, commercial mortgages, bridging, and business loans, with a similar panel-based intermediation model.
• Hilton Smythe Finance: Hilton Smythe Finance is a UK commercial finance broker arranging business loans, asset finance, and property funding for SMEs. It is directly comparable to Funding Friends, serving a similar SME customer base across lending, leasing, and commercial property transactions.
• Funding Options (now Koodoo): Koodoo (formerly Funding Options) is a UK online marketplace that matches SMEs with lenders across commercial finance, asset finance, and business loans. It is a direct competitor to Funding Friends, operating in the same broker-to-lender intermediation model for UK SMEs, with a more digital-first matching platform.
• Praetura Asset Finance: Praetura Asset Finance is a UK independent asset finance funder offering hire purchase, leasing, and asset refinance across multiple sectors. It is a named Funding Friends partner and operates in the same asset finance intermediation space for UK SMEs, making it a directly comparable peer.

Broad incumbents

• Albemarle Asset Finance (Close Brothers Asset Finance): Close Brothers Asset Finance is a UK specialist asset and commercial finance provider serving SMEs with hire purchase, leasing, and refinancing. It is comparable as both a potential panel lender for Funding Friends and as a competing intermediary in the UK SME asset finance market.
• Bibby Financial Services: Bibby Financial Services is a UK-based invoice finance, asset finance, and broader commercial finance provider that combines direct lending with broker-style intermediation. It is comparable to Funding Friends because both serve UK SMEs across working capital, asset-based lending, and growth funding products.

Others

• Shawbrook Bank: Shawbrook Bank is a UK specialist SME and property lender — CEO Jonathan Rostron is a former Shawbrook banker. It is comparable as a panel lender Funding Friends brokers to, and as a benchmark for specialist SME lending economics in the UK.
• BOOST&Co: BOOST&Co is a UK alternative lender providing growth capital loans (£1m–£10m) to innovative SMEs — a documented Funding Friends partner (£1.5m ECSC deal). It is comparable as a destination lender in the UK growth finance ecosystem where Funding Friends operates as an introducer.

Emerging players

• Stuart Lawson Finance / Coast Capital: Coast Capital is a UK commercial finance broker arranging business loans, bridging finance, and property funding for SMEs and investors. It is a comparable emerging UK broker operating in similar product categories and customer segments to Funding Friends.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/fundingfriends
• LinkedInlinkedin.com/company/fundingfriends

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Funding Friends