ThinCats, the fintech lender for mid-sized SMEs, has welcomed a new £20m funding commitment from British Business Investments, a commercial subsidiary of the British Business Bank.

British Business Investments is making the new commitment under its investment programme, which supports the development of more diverse debt finance markets for small and medium sized businesses.

The commitment will provide ThinCats with additional capital to make term loans which will support the growth of businesses across the UK.

ThinCats, based in Ashby-de-la-Zouch in Leicestershire, now has capital in excess of £800m for the funding of UK smaller businesses, across the full risk spectrum and in all regions and sectors, from £250,000 to £10m.

It aims to simplify the traditional bank-dominated commercial lending model by connecting smaller businesses directly with institutional and retail investors.

“British Business Investments’ funding commitment constitutes a great success for our business, and we are looking forward to working together with the team," said ThinCats MD Ravi Anand.

“Our increasing diversity of institutional funding sources allows us to address the full spectrum of our target market and this new commitment plays an important role in this context.”

Catherine Lewis La Torre, CEO of British Business Investments, said: “A big part of our role is to increase the overall supply and diversity of finance, both product and provider, on offer to UK smaller businesses thereby creating more choice and competition in the market.

“ThinCats’ innovative approach brings a welcome additional model to the market and we look forward to working with them so more funding reaches businesses across the UK.”