UK SME finance platform Rocking Horse has received the backing of debt and equity investor Quilam Capital to help businesses gain access to government financing.

Rocking Horse provides loan solutions for SMEs with no monthly capital payments secured against R&D tax credits and innovate UK grant regimes. It aims to help businesses grow and develop while they await government funding, with loans repaid once financing is received.

Typical loans range from between £50,000 ($61,200; €56,369) and £1 million and are focused on businesses that are loss-making and thus excluded by traditional banks and other finance platforms.

The firm is Quilam’s ninth investment, and a committed facility will enable it to grow with ambitions to become the largest SME innovation finance provider in the UK.

Sarah Watts, director at Quilam, added: “The Quilam team has extensive experience in the UK SME lending market and the Rocking Horse proposition fills an important gap to provide instant cash for UK firms investing in innovation. Accelerating this cashflow can play a crucial role for SMEs maintaining growth, delivering contracts and ultimately continuing to play their vital role in the UK economy.”

London-based Quilam launched in 2017 to provide debt and equity for business operating in the SME and consumer finance, leasing and mortgage markets with a typical investment size of £2 million to £10 million. The value of its investment in Rocking Horse was not disclosed.