GB Bank plans to substantially expand its lending capabilities for its target business sector after securing £85m of additional capital in a funding round.
The company, headquartered in Middlesbrough, Teeside, projects that the investment will enable it to grow its lending to over £500m over the coming 12 months.
GB Bank’s area of focus will be to expand its team and infrastructure, starting with a recruitment drive, with an objective to double its current workforce. Its key target market is SME property developers and investors, with a focus on funding property projects.
GB Bank CEO and Co-Founder, Stephen Lancaster, said: “This is fantastic news for GB Bank and everyone who has supported our purpose and ambitions since day one and is testament to the hard work of every single member of the team.
“We are delighted to have already helped so many brokers, property developers and investors to increase their property portfolios with our flexible funding solutions, as well as our savings customers who have trusted us with their money and received competitive rates of return.
“This investment allows us to support even more property developers and investors with the vital funding they need whilst delivering exceptional customer service, which has been our hallmark since day one.”
Leading the investment in GB Bank is Hera Holdings, which will inject an initial £40m in GB Bank over the next year. The bank also plans to invest a further £40m throughout 2025 and 2026.
Councillor Julia Rostron, Chair of the Teesside Pension Fund Committee, said: “We have backed GB Bank’s business model and its purpose throughout its journey through full banking authorisation and on to successful operation.
“Having Hera Holdings onboard has significantly bolstered its lending capabilities and accelerates its future success. Our continued support of GB Bank is testament to its incredible progress to date and its huge future potential.”
