- The funding will enhance Capital on Tap’s ability to provide rapid credit to SMEs, strengthening its position in the UK and US markets.
- This move highlights the UK FinTech sector’s resilience, addressing SME financing needs amidst a challenging investment landscape.
Capital on Tap boosts SME lending
UK-based FinTech Capital on Tap has secured an additional $882 million in funding, expanding its Master Trust facility to $ 1.63 billion. This follows a previous $747 million facility arranged with global banking giants BNP Paribas and Citi, as reported by FinTech Futures. The latest funding round, backed by investors including SMBC Group, will enable the company to enhance its small business credit card offerings in the UK and US. Capital on Tap, known for its rapid credit approval process has already supported over 200,000 SMEs since 2016, providing flexible financing solutions tailored to their needs. This new capital injection will fuel further expansion, particularly in the US, where the firm launched its credit card services in 2021 after securing a $100 million credit facility from Atalaya.
Capital on Tap has provided over $14 billion in funding to more than 200,000 small businesses in the UK and US. The company offers a suite of physical, virtual, and travel credit cards, featuring 1% cashback on all purchases. In addition to the funding, Capital on Tap recently partnered with ClearBank to launch a business instant savings account, enhancing its embedded banking services.
Also read: Lloyds and PayPoint partner to boost payments for UK SMEs
Also read: ClearBank and Capital on Tap enhance savings for small firms
Why it’s important
This significant capital infusion positions Capital on Tap to scale its operations and deepen its support for SMEs—a sector often underserved by traditional banks. The establishment of the Master Trust facility not only underscores investor confidence but also sets a precedent for non-bank entities in the European credit market.SMEs, often underserved by traditional banks, rely on agile FinTechs like Capital on Tap for quick and flexible credit. Capital on Tap’s growth reflects the sector’s resilience and its critical role in driving economic recovery by empowering SMEs. As the company scales, it could inspire further innovation in digital lending, potentially influencing regulatory frameworks to better support FinTechs addressing funding gaps for small businesses.
