UK’s Capital on Tap bags €114.3M revolving credit facility to empower SMEs in UK, US

London-based Capital on Tap, a credit card and spend management platform for small businesses, announced on Tuesday, October 18, that it has raised £100M (approximately €114.37M) corporate revolving credit facility with Atalaya Capital Management.

New York-based Atalaya is a privately held, SEC-registered, alternative investment advisory firm. It primarily focuses on making private credit and special opportunities investments in three principal asset classes – specialty finance, real estate, and corporate. Founded in 2006, the firm has nearly $9B in assets under management.

While this is the first corporate revolving credit facility for Capital on Tap, the company has already secured two fundraising facilities with Atalaya Capital Management, both in 2021. And in August 2022, the company secured nearly €236M in a funding facility from JP Morgan and Triple Point.

Capital utilisation

This revolving credit facility will be used to improve Capital on Tap’s developing product offering, even though the company has closed several funding facilities in the past, over £1B since June 2021, to pay consumers.

Capital on Tap says it will also use the funds to build out its central finance hub for small business owners in the UK and US. This will include a full accounts payable suite to manage bills and expenses, a credit score builder to help new companies establish business credit, and several other products and features to help small businesses from the day they start their business.

Alan Hart, CFO at Capital on Tap, says, “This facility will allow us to better serve our small business customers with the spend management tools and flexible funding they need to grow. Moreover, it is fantastic that we have broadened our relationship with Atalaya to include a general-purpose corporate facility.”

“The credit card built for small businesses”

Founded in 2012 by David Luck, George Karibian and Jan Farrarons, Capital on Tap is a privately held financial technology company that provides funds to small and medium-sized businesses in the UK and US.

Co-founder and CEO, David Luck, says, “We continue to see small businesses overlooked and underserved by the large incumbent banks. We want to build a simple, seamless finance platform for small business owners.”

Since its inception, the company has provided over £4B of funding to more than 200,000 small businesses. In 2021, it also launched its US business, which already has more than 14,000 Capital on Tap Business Credit Card holders.

Currently, Capital on Tap offers an all-in-one business credit card and spend management platform with limitless free 1 per cent cashback, flexible payback choices, accounting interfaces, and as many employee cards as required. This platform is designed to save small businesses time and money.

In a statement, the company claims that it has been profitable since 2017 and has experienced a 62 per cent annual sales growth over the last 3 years.