London-based fintech equipal has successfully secured €18.84 million in a significant funding round led by Altum Capital Management. The investment package is composed of a €1.4 million equity injection and a €17 million forward flow facility. This capital infusion is earmarked to expand the company's team and substantially increase its lending capacity for business equipment financing.
Navigating a Challenging Market
This funding arrives during a difficult period for the private credit market, where many smaller lending platforms face constraints due to investor pullback. Altum Capital's decision to back equipal underscores a strong belief in the company's resilient business model and disciplined credit management. The transaction was structured conservatively, reflecting confidence in equipal's growth trajectory and operational strength.
Eamonn McMahon, equipal's founder, expressed his enthusiasm for the deal, highlighting the company's operational resilience and customer-first approach. He noted that the deal's structure is designed for future growth, allowing for additional senior funding in the coming years. This strategic partnership with Altum Capital provides crucial operating flexibility as the company prepares to scale its operations.
Modernizing Asset Finance
Founded in 2021 by former investment banker Eamonn McMahon, equipal aims to disrupt the traditional asset finance industry. The company was established to modernize what has historically been a slow and cumbersome process heavily reliant on manual communication. Its core mission is to provide a streamlined and efficient financing solution for business equipment purchases.
equipal's proprietary technology platform is embedded directly at the point-of-sale with more than 75 equipment vendors across the United Kingdom. This integration enables businesses to arrange fast, fully digital asset finance for up to £250,000. The company finances a wide range of hard assets, from CNC machines to transport vehicles, with flexible terms of up to five years.
A Proven Track Record and Future Growth
The company's performance since its launch demonstrates a robust and effective credit assessment model. equipal has maintained a low default rate of just 1.26% and has experienced zero credit losses to date. Furthermore, a high customer retention rate of 69% indicates strong satisfaction and trust in its platform.
With the new capital, equipal plans a strategic expansion of its team to support its growth ambitions. The company intends to increase its headcount to 12 employees over the next year, hiring for key roles. These positions will span business development, marketing, operations, credit, and data analysis to bolster its lending capabilities.
Broader Industry Context
This investment aligns with a broader trend of capital flowing into SME-focused financial platforms and embedded finance infrastructure. In the UK market, comparable deals include Allica Bank's significant Series D round for SMB lending. This context highlights the continued investor interest in fintech solutions that address the financing needs of small and medium-sized enterprises.
The €18.84 million funding round marks a pivotal achievement for equipal, validating its innovative approach in a challenging economic climate. Backed by Altum Capital, the company is now strongly positioned to accelerate its growth and expand its market presence. This strategic investment will empower equipal to continue its mission of transforming the asset finance landscape for UK businesses.