£500m · Debt · Fintech · London, UK
London-based digital lender Lendable has secured £500 million through a sale of securities backed by personal loans. The transaction marks its first public asset-backed securitisation and gives the company fresh funding capacity as it expands its consumer-credit business.
Lendable offers loans, credit cards and car finance in the UK and is scaling in the US and Mexico, according to Finextra. The company said it had originated more than £10 billion of consumer-credit assets since launch; Finextra also reported 2025 revenue of £446 million and operating profit of £114 million.
Securitisation turns past lending into new funding capacity
The transaction moves a portfolio of consumer-loan receivables into Hoxton Consumer Loan Funding 2026-1 DAC, which issued notes repaid from borrowers' principal and interest payments. Ogier says the portfolio contains more than 79,000 unsecured UK consumer loans with an aggregate £500 million outstanding balance.
That structure matters because a lender's growth is constrained by how much funding it can recycle into new loans. Selling securities backed by an existing portfolio converts receivables into financing without issuing equity. It also broadens the funding base beyond private warehouse facilities, provided public investors remain comfortable with the underlying credit performance.
Demand was strong: Ogier reports an orderbook above £1.4 billion, while the senior Class A notes received Aaa and AAA structured-finance ratings. EuroABS says Lendable's risk-retention vehicle keeps at least 5% of the securitised exposure through the Class F notes, maintaining direct exposure to portfolio performance.
Repeat execution matters more than one large placement
A debut issue can establish access to public capital markets, but the commercial value depends on whether Lendable can return on attractive terms. Repeat securitisations would let it match funding more closely to loan origination and reduce reliance on a smaller group of private funders. The £1.4 billion orderbook is encouraging evidence of demand, though pricing and future capacity will still depend on arrears, losses and how consistently its underwriting performs.
Lendable's technology-led application and servicing model is designed to make personal borrowing faster and easier. Public securitisation adds a second scaling layer: the company must not only originate loans efficiently, but also produce portfolios that ratings agencies and institutional investors can evaluate, price and monitor. That makes credit performance and reporting quality as important to expansion as customer acquisition.
