At Love Ventures, we back startups that are challenging outdated industries like banking with technological innovation that can drive a step-change in output for downstream businesses and consumers.
That’s why we’re thrilled to back Bourn as they set out to redefine how businesses access working capital. Traditional overdrafts and invoice financing haven’t kept up with the digital age, leaving SMEs with limited, inefficient options. Bourn is stepping in to fill this gap with a smarter, real-time solution. Here’s why we invested:
A £200bn Working Capital Gap
SMEs power the UK economy, but many are holding back on growth; not due to a lack of ambition, but because they can’t get the financial support they need.
The UK alone has a £200bn working capital funding gap, with traditional invoice finance servicing only 10% of this need. The current system is slow, manual, and generally only accessible to larger corporations, many of which have dedicated relationship managers.
For SMEs, this results in a cash flow balancing act—juggling multiple credit lines, chasing payments, and spending more time managing finances than running their businesses. Lenders, too, face challenges in assessing receivables as collateral and ensuring timely repayments.
Traditional banks, the go-to lenders for hundreds of years, have struggled to keep up with the evolving needs of small businesses. SMEs need quick access to funds to seize opportunities, but many banks still rely on long application processes and outdated risk assessments.
Introducing: Bourn’s FLexible Trade Account (FTA)
Bourn is transforming the way SMEs manage cash flow by offering a receivables-backed credit line that functions like an overdraft. Their Flexible Trade Account (FTA) integrates with businesses’ accounting systems in real time, providing dynamic credit based on actual receivables rather than static lending models. The result? More accessible, automated, and embedded finance.
– Real-time credit: SMEs can access funds based on invoices, transactions, and cash flow.
– Automation: AI-driven risk assessment streamlines lending decisions, reducing manual processes.
– Embedded finance: Banks, accounting platforms, and SaaS providers can integrate Bourn’s FTA seamlessly, offering a frictionless experience to businesses.
Why Now for Bourn
SME finance is undergoing a major transformation, driven by digitisation, open banking, and embedded finance. The traditional barriers to accessing credit—manual underwriting, rigid risk models, and slow approval processes—are being dismantled by technology-led solutions.
The rise of B2B Buy Now, Pay Later (BNPL), revenue-based financing, and alternative lending platforms signals a shift towards more flexible and data-driven funding options for businesses. However, these solutions still don’t fully address the working capital gap. Bourn’s approach—leveraging real-time accounts receivable data to offer dynamic credit—is a significant leap forward.
In Europe and the UK, regulatory trends are also pushing financial institutions to provide more transparent and efficient lending solutions. Open banking regulations are making it easier to access financial data, and fintech firms are using this to create smarter underwriting models.
Meanwhile, the increasing adoption of AI-driven credit risk assessment and automated lending platforms means that innovative financial products like Bourn’s can scale rapidly without markedly increasing risk.
Beyond the UK, there’s an even larger global opportunity. While banks and fintech lenders have digitised consumer banking, corporate banking—particularly SME finance—remains an underserved space ripe for transformation.
The Team behind Bourn
We invest in exceptional founders who bring deep domain expertise and a proven ability to execute. Bourn’s leadership team—Nick Tracey, Roger Vincent, and Paul Gambrell—brings a stellar blend of banking, credit risk, and technology experience.
CEO Nick is the banker by trade from RBS & later Barclays (a self-described “frustrated innovator”), CGO Roger played a key part in scaling Trade Ledger as Global VP of Product, and CTO Paul lead fast-moving tech teams at Gaming Realms and Samarkand Global.
Surrounding them is an impressive advisory board, including senior figures from fintech and banking like Leda Glyptis and Nick Stewart, and we’re really pleased to be working alongside fellow investors Portfolio Ventures, Haatch and Aperture.
What Next for Bourn and SME Finance
The world of SME finance is long overdue a rethink, and Bourn is well-placed to be right at the heart of it. By combining AI-driven risk assessment, real-time data, and embedded finance, the team are unlocking a better way for businesses to manage working capital.
Bourn is already making significant strides with key industry players and we’re excited to be part of the journey as they transform the financial landscape for SMEs.
