Capital on Tap lands $200m of funding 12 months after US expansion

Capital On Tap has secured a $200m funding facility with HSBC and Värde Partners to expand its lending in the US.

The UK-based alternative lender, founded in 2012, lends money to UK SMEs and since March 2021, it has begun a US expansion.

With a base in Atlanta, Capital on Tap made launched a US credit card in 2021, aimed at small and medium-sized businesses recovering following the pandemic’s harsh economic downturn. It now has over 50 employees in Atlanta.

Last year,  it scored £450m funding from Atalaya Capital Management, BNP Paribas and also from HSBC for its UK operation but is now looking to scale loans to cash-strapped smaller firms in the US.

“With the closing of this facility we are looking forward to expanding our ability to provide essential funding for small businesses across the United States, said Alan Hart, CFO at Capital on Tap.

Värde Partners is a US-based alternative investment firm focused on lending. Aneek Mamik, Partner and Global Co-Head of Financial Service at the firm anticipates more activity with online lenders. 

“We see this as a good example of an emerging substantial investable opportunity set for us, providing capital solutions to digitally oriented non-bank lenders that are financing the needs of businesses investing in their products and customers.”

Capital On Tap says it has lent over £3.5bn to more than 125,000 small and medium-sized businesses across the UK and US.