Capital on Tap loans to small firms top £1bn

By Roger Baird on 8th August 2019

Alternative Credit

The London-based alternative lender said it has made loans to over 65,000 small firms over the last seven years.

Capital on Tap loans to small firms top £1bn
Image source: Rawpixel.com from Pexels

Online lender Capital on Tap said it has loaned over £1bn to small firms across the country since it was launched seven years ago. 

The London-based lender, which started life in a three-person office in Notting Hill, said it has provided working capital to more than 65,000 small firms through a revolving credit facility and its business Mastercard service.

The start-up said it aims to support growing firms across the UK, with 87 per cent of its loans going to businesses outside London. It lends companies up to £50,000, adding its online application form takes around two minutes to complete.

The lender is run by co-founder and chief executive David Luck, who previously worked by US private equity powerhouse KKR and as a management consultant for Bain and Company.

 

Talking to small firms

Luck said: “Only when face to face [talking to small businesses] can you really understand the issues your customers are struggling with and how you can help them.”

Capital on Tap, launched in 2012, said it has received over £290m in funding this year. Previous investors in the lender include M&G Investments, Triple Point Investment Management and private equity house Pollen Street Capital. 

Capital on Tap competes against a range of alternative lenders such as Funding Circle, Assetz Capital and Growth Street. Alternative lending mushroomed in the aftermath of the 2008 financial crisis, when high-street banks scaled back their loans to small businesses, fearing defaults.