Capital on Tap lands £750m funding for SME credit growth
Capital on Tap, a digital business credit provider that offers SME credit cards and working capital solutions, has secured £750m (US$947m) in funding facilities to expand its lending operations in the UK and US markets.
Funding Structure Innovation
The funding package includes a £550m (US$694m) Master Trust facility arranged by BNP Paribas and Citi, establishing the first non-bank credit card master trust in Europe since 2015.
master trust structure, which allows for multiple series of notes to be issued against a single pool of receivables, enables lenders to access capital markets funding more efficiently than traditional securitisation structures.
The remaining £200m (US$252m) comes from an expanded revolving credit facility with Blue Owl Capital, an alternative asset management firm.
This represents a doubling of an existing £100m (US$126m) facility and will support Capital on Tap's credit operations across both its UK home market and US expansion.
"Creating Europe's first non-bank credit card master trust in nearly a decade showcases the scale we have built and opens up exciting possibilities for supporting even more small businesses"
Market Expansion Strategy
The funding arrangements signal a shift in institutional appetite for fintech credit assets, particularly in the SME sector where traditional bank lending has faced constraints since the 2008 financial crisis.
Capital on Tap's platform, which processes credit applications through digital channels, has positioned itself to fill this gap in SME credit provision.
Damian Brychcy, CEO at Capital on Tap, says: "Creating Europe's first non-bank credit card master trust in nearly a decade showcases the scale we have built and opens up exciting possibilities for supporting even more small businesses."
The participation of major financial institutions indicates growing confidence in fintech lending models.
Ghanem Al-Araj, Managing Director at BNP Paribas, says: "This ongoing partnership showcases our commitment to supporting innovative companies in continuing to grow their lending business in the SME sector."
Exploring Capital on Tap
Founded in 2012, Capital on Tap operates in both the UK and US markets, offering digital business credit cards and working capital solutions through its proprietary technology platform.
The company's core product is a business credit card that combines payment capabilities with working capital access, enabling SMEs to manage their cash flow and business expenses through a single platform.
Capital on Tap's technology enables rapid credit decisions through digital channels, typically providing responses to credit applications within 24 hours.
Since its inception, Capital on Tap has provided over £4bn (US$5bn) in funding to more than 200,000 small businesses. The company maintains offices in London and Atlanta, employing over 200 people across its operations.
Capital on Tap is regulated by the Financial Conduct Authority in the UK and partners with WebBank for its US operations.
Ivan Zinn, Head of Alternative Credit at Blue Owl, says: "We are excited to grow our relationship with Capital on Tap with this increase in the revolving credit facility to support their mission of helping small businesses thrive in the UK and the US."
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