Capital on Tap Secures £500M in Europe's Largest Non-Bank Credit Card ABS

SME lender Capital on Tap has closed a £500 million funding facility in what the company says is the largest non-bank credit card asset-backed securitisation ever issued in Europe.

The deal comes as traditional lenders have been tightening criteria and reducing exposure to the small business market amid ongoing economic uncertainty. Capital on Tap says the funding will enable it to expand lending capacity at a time when many competitors are pulling back.

Market Significance

The scale of the ABS issuance represents a significant vote of confidence from institutional investors in the UK SME credit market. Asset-backed securitisation allows lenders to package existing loans into securities, freeing up capital to originate new lending.

For Capital on Tap, the facility provides substantial firepower to continue serving small businesses seeking credit card facilities and working capital solutions. The company positions itself as a technology-driven alternative to traditional bank lending for SMEs.

Counter-Cyclical Expansion

The funding announcement stands in contrast to broader trends in SME lending, where many providers have become more conservative in their underwriting. Capital on Tap's ability to secure significant institutional backing suggests investor appetite remains for well-performing SME credit portfolios.

Capital on Tap is authorised by the Financial Conduct Authority for consumer credit activities and electronic money issuance. The company provides business credit cards and credit facilities to small and medium-sized enterprises across the UK.

To find out more, visit: capitalontap.com