Fintech Salary Finance secures £300m JP Morgan credit line

One of Britain's biggest workplace lenders has secured a £300m credit line backed by the Wall Street behemoth JP Morgan as it seeks to add to a roster of clients that includes Tesco and Tesla.

Sky News understands that Salary Finance will announce on Friday that it has agreed the funding facility with JP Morgan and Atalaya Capital Management, an alternative investment firm.

The agreement takes the total amount of debt funding for loans raised by Salary Finance to about £800m since its launch in 2015.

It has also raised more than £100m in equity from a group of blue-chip investors including Legal & General, Experian and Blenheim Chalcot, the venture builder.

Salary Finance offers a range of payroll-deducted loans to the employees of its clients, which include 20% of the FTSE-100 and a total of more than 4.5 million workers.

Prominent corporate clients include Marks & Spencer and Thames Water.

The fintech believes it is well-positioned to grow strongly because the cost-of-living crisis has strengthened companies' focus on employees' financial wellbeing.

The City watchdog's most recent Financial Lives Survey concluded that nearly 13 million Britons had low financial resilience.

In 2020, Salary Finance swooped on the assets of smaller rival Neyber, which counted Goldman Sachs among its backers but had run into financial difficulty.

It now works with more than 650 employers.