By Oliver Smith on Thursday 11 June 2020
As CEO Oliver Prill announces the SME banking service has reached £50m in bounce back lending to-date.
Tide is in discussion for a funding round worth “hundreds of millions of pounds” which is needed for the lender to continue distributing government-backed Bounce Back Loans.
“The Government doesn’t provide us with money to lend to borrowers. This affects how much we can lend. We – just like all accredited lenders – have to source the funds to lend as loans.”
Which has meant that Tide’s Bounce Back Loans have reached the £50m mark “a significant amount for the size of our business”, but the SME banking service is struggling to lend more with the cash reserves it has.
“We’re now in discussions to raise hundreds of millions of pounds more. We hope to have this funding agreement in place soon and we’ll then be able to offer loans to many more of you,” said Prill.
“We continue our efforts to raise the funding to lend through the scheme but, as we said when members signed up for the waiting list, unfortunately we can’t guarantee that every eligible business that joins our list will receive a Tide Bounce Back Loan.”
In conclusion, Prill writes "we encourage members to consider other options as well as a Bounce Back Loan from Tide."
Capital has become increasingly scarce in the post-Covid world, and many alternative lenders like Tide have found themselves with the customer base and technology to deliver record lending, but without access to the funding lines needed to enable it.