London-based asset finance FinTech equipal has raised a combined €18.84 million (£16.25 million) in new funding to expand its team and increase lending capacity for small and medium-sized businesses across the UK.
The package includes a €1.4 million equity investment alongside a €17 million forward-flow facility provided by Altum Capital Management, giving the company both operational capital and expanded financing firepower.
Expanding Digital Equipment Finance for SMEs
Equipal specializes in business equipment financing, offering fast, digital asset finance solutions embedded directly at the point of sale.
The platform enables SMEs to secure funding for equipment purchases such as manufacturing tools, transport assets, and industrial machinery—often up to €289,000 (£250,000) per transaction.
Operating through a network of more than 75 equipment vendors across the UK, equipal integrates financing directly into the purchasing process, reducing friction for both vendors and buyers.
Building Infrastructure for Embedded Lending
The company’s model is part of a broader shift toward embedded finance, where lending and financial services are integrated directly into commercial platforms rather than delivered through traditional banking channels.
Equipal’s technology automates what has historically been a slow, paperwork-heavy process, replacing manual credit workflows with a streamlined digital system.
This allows businesses to access funding more quickly while enabling vendors to close sales more efficiently.
Strong Credit Performance in a Challenging Market
Despite a difficult environment for SME lending and platform finance, equipal reports a default rate of 1.26% and zero credit losses to date.
The company also notes that 69% of customers return for additional financing, indicating strong repeat usage and customer retention within its lending ecosystem.
These metrics are particularly notable given broader market pressures in private credit and SME finance, where many smaller lenders have faced tightening investor appetite.
Scaling Team and Lending Capacity
The new funding will support hiring across key functions including:
- Business development
- Marketing
- Operations
- Credit risk
- Data and analytics
The company expects to grow its team to around 12 employees within the next year, while also expanding its lending capacity across its vendor network.
Embedded Finance in the SME Economy
Equipal’s growth reflects a wider trend in European fintech: the rise of specialist, asset-focused lending platformsserving underserved SME segments.
Rather than competing directly with traditional banks, platforms like equipal focus on niche financing workflows where speed, integration, and flexibility are critical.
This includes sectors such as manufacturing and transport, where access to timely equipment financing can directly impact business growth and productivity.
Positioned in a Competitive Lending Landscape
The UK SME lending and fintech ecosystem continues to see activity across digital banking, embedded finance, and alternative credit models, despite macroeconomic uncertainty.
Equipal’s combined equity and debt structure highlights how modern fintech lenders increasingly rely on hybrid funding models to scale operations while maintaining credit discipline.
Looking Ahead
With fresh capital secured, equipal aims to deepen its integration with equipment vendors and expand its lending footprint across the UK SME market.
As embedded finance continues to reshape how businesses access credit, platforms like equipal are positioning themselves as critical infrastructure between vendors, buyers, and capital providers in the real economy.
