FTSE 250 tech firm becomes small-firm lender Sean Royce, KC's finance director, is running the scheme, which is called KC Invest. It has made £300,000 of capital available, which is then matched by two Community Development Finance Initiatives (CDFIs) - small regional lenders - providing a combined fund worth £600,000. We might lose a bit on defaults. It's really about stimulating growth in the town we're based in, giving staff a different view on local life and of course it helps the brand," he said. KC Invest has backed 13 businesses so far, with a combined £100,000, mostly in the technology sector "because that's what we do," Mr Royce said. It could work in any area and in any sector - we're surprised more big companies aren't doing it. We're trying to get a consortium going in our area now. Private sector funding schemes like this have the potential to transform the UK lending landscape," he said. The business allows companies to apply for loans at monthly "pitching" sessions, before successful applicants are credit checked by a CDFI. Mr Royce said applications can be turned around in around three working days, and a mentor can be provided alongside loans. "That's what really sets it apart," he added. James Ward, founder of Electric String, said: "The entire process was completely different from dealing with banks in terms of the speed and ease of securing finance." Peter Sykes, fund manager at the Acorn Fund, one of the CDFIs which has partnered with KC, said the fund "sets an example for other leading local employers up and down the country to follow." Companies can also apply for KC Invest through Acorn, or Sirius, the other participating CDFI. Separately, Britain's six largest banks are piloting a scheme which will see them formally refer small companies whose credit applications they reject to local CDFIs.