Kroo Bank backs 9Y Capital's UK bridging loans in forward flow deal
What's the deal? Digital bank Kroo has entered a forward flow funding arrangement with specialist lender 9Y Capital to support bridging and refurbishment lending across the UK property market. Kroo will fund a portion of 9Y's future loan originations through an ongoing structure, creating a long-term partnership between the two.
What does 9Y do? Founded in 2023 by Stephen Johnson and Karen Bennett, 9Y provides flexible lending to experienced property investors and developers. It targets borrowers who fall outside the standard criteria or need faster execution than high street banks offer.
What's the endgame? The deal is 9Y's fifth institutional funding arrangement, giving it stable capital to scale its lending. "Kroo's flexibility and pace as a digital bank make them a natural fit for how we work with our own clients," said Stephen Johnson, managing director and co-founder at 9Y Capital.
Why it matters to Kroo? The arrangement lets the fully licensed bank diversify its lending exposure beyond retail banking products. "This partnership with 9Y reflects Kroo Bank's strategy to expand our lending offering for customers through carefully selected partnerships," said Veronika Lovett, chief executive officer at Kroo Bank.
The signal: Forward flow deals are becoming a common route for digital banks to deploy capital into established sectors while backing specialist lenders. For 9Y, the tie-up channels bank funding into a bridging market that traditional lenders often leave underserved.
Read more: Bridging Loan Directory
Image credit: infomatique
