Capital On Tap, one of the UK’s fastest growing companies, has secured a total of £140 million in additional funding in the form of £90 million in debt funding from London-based investment houses, M&G Investments and Triple Point Investment Management LLP; and a second £50 million debt line from international bank, Citibank and private equity fund manager Pollen Street Capital. Capital On Tap is not publicly disclosing its valuation but it has now raised over £30 million of equity and £200 million of debt to date.
Since its launch in 2012, Capital On Tap has challenged major banks, by offering small businesses a faster and more transparent way to fund their business.
CapitalOn Tap has already provided over £500 million in funding to more than 40,000 small and micro businesses across the UK. It plans to use the additional financing it has received to accelerate growth in the UK, enabling it to serve more small businesses, and replicate the model in other geographies across Europe. “We continue to see small businesses being underserved by banks and offered really poor service, we are trying to solve that issue. With Capital On Tap we try to keep it really simple by letting businesses access up to £50,000 in minutes,” says David Luck CEO of Capital On Tap.
This additional funding represents another important step in the ongoing growth story of Capital On Tap, the company co-founded by David Luck and serial entrepreneurs, George Karibian and Jan Farrarons, who also set up London-based payment services provider, Paymentsense. Both Capital On Tap and PaymentSense were featured on the Sunday Time Tech Track 100 for 2017, cataloguing the 100 fastest growing companies in the UK.
Alan Hart, Capital On Tap’s CFO, said: “Our funding facilities are specifically designed to help small businesses that have been underserved and overcharged by high street banks thrive. These funding facilities build upon existing relationships with great funding partners and bring new partners into the fold.”
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James Pearce, head of direct lending, M&G Investments, commented: “Small businesses across the country are the lifeblood of our economy. It is essential for businesses of all sizes to have access to credit facilities in a timely manner in order to grow and to manage cashflow. This deal brings much needed cashflow to small businesses whilst benefiting our pension fund clients.”
Capital On Tap was advised by EY and Norton Rose in securing its additional funding.