Tide unveils ‘reverse loans’ to help small businesses build credit scores
How 12 payments of £23/month could make a huge difference to SMEs.
It’s hard to build credit, especially for new small businesses without a track record of repayments.
Ever-keen to fix the challenges faced by its members, Tide is today launching Credit Builder for Small Businesses, which includes a micro ‘reverse loan’ of £240.
The SMEs make regular ‘repayments’ of £23/month to Tide, and then after 12 months receive the full £240 back, costing them nothing.
However, the act of simply making these regular payments proves their creditworthiness and helps to start the journey of building a credit score.
“As we emerge from the COVID-19 pandemic, small businesses are working hard to get back on their feet and make up for the toughest year and a half they have seen,” said Amit Kahana, VP of Tide Credit Services.
“Investing in growth is high on the list of priorities for many of these businesses but a poor or non-existent credit score is often a barrier to accessing credit options.”
Kahana said Tide had found 87 per cent of its small business owners have a credit score below 80, clearly holding them back from accessing credit.
“We hope that by offering a simple way for businesses to boost their credit score they will see a wider array of credit products opening up to them, helping to fuel sustainable growth.”