Capital on Tap, an SME financing solution, has raised £140m in debt funding.
The round was made up of a £90m debt funding from M&G Investments and Triple Point Investment Management, and an additional £50m in debt from Citi Bank and private equity firm Pollen Street Capital.
While the company is not disclosing its current valuation, it has announced it has raised £40m in equity and £200m in debt, since it launched in 2012.
London-based Capital on Tap is a credit card provider for small businesses which supports loans of up to £50,000. To qualify for the credit, a business needs an annual turnover of at least £24,000 and no unsatisfied CCJs against the business for 12 months. If a business is not eligible, they may be offered a prepaid card solution, which is reviewed every three months.
The credit can be spent on the company Mastercard or can be transferred to a bank account. Capital on Tap also offers no monthly or annual fees, free ATM withdrawals, and FX spend.
The company has provided more than £500m in funding to over 40,000 small businesses in the UK, and this new capital will be used to accelerate growth in the UK by serving more companies.
Triple Point Investment Management investment manager Neil Richards said, “As a long-standing provider of finance to the UK SME sector, Triple Point is delighted to support Capital on Tap with this increased facility.
“We recognise the critical part that the SME sector plays in the UK economy and as innovative operators continue to fill the gaps left by traditional funders, we have expanded our own team to identify opportunities like this one to deploy our private capital.”
Capital on Tap was advised by EY and Norton Rose on the new line of debt funding.
Earlier in the week, EY announced it is going to invest an additional $1bn into the FinTech space over the course of the next two years.
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