Fully licenced digital bank Kroo has entered a forward flow funding arrangement with specialist lender 9Y Capital (“9Y”) to support bridging and refurbishment lending across the UK property market.
Property investors and developers often require financing that falls outside the standard criteria, or speed of execution of high street banks. Specialist lenders like 9Y exist to fill that gap. Partnerships like this help more investors access sustainable finance, while allowing Kroo Bank to further diversify its lending exposure.
Under the agreement, Kroo will fund a portion of 9Y’s future bridge and refurbishment loan originations through an ongoing forward flow structure, creating a long-term funding partnership between the two businesses. Founded in 2023 by Stephen Johnson and Karen Bennett, 9Y has built a strong reputation in the sector for flexible, responsive lending to experienced property investors and developers.
Veronika Lovett, Chief Executive Officer at Kroo Bank, said: “This partnership with 9Y reflects Kroo Bank’s strategy to expand our lending offering for customers through carefully selected partnerships. The 9Y team have an excellent track record in specialist property finance, and we’re proud to support their next phase of growth with stable, long-term funding. As Kroo continues to scale, partnerships like this strengthen our ability to deploy capital into established sectors, supporting experienced lenders in delivering strong outcomes for borrowers across the UK.”
Stephen Johnson, Managing Director and Co-Founder at 9Y Capital, said: ”We’re delighted to partner with Kroo Bank on this forward flow arrangement. Kroo’s flexibility and pace as a digital bank make them a natural fit for how we work with our own clients. Concluding our fifth institutional funding arrangement is a great milestone for the team, and we're excited about the opportunities the long-term relationship with Kroo provides as we continue to invest in scaling the business.”
The transaction marks another step in Kroo Bank’s broader strategy to diversify its lending activities alongside continued growth in its retail banking products.
