Capital on Tap, the business credit card and spend management platform, announced the closing of “London Cards 3,” its third asset-backed securitisation (ABS)—a £500 million funding package that has reportedly been backed by its business credit card receivables. The deal, which is said to be the “largest” non-bank credit card ABS issued in Europe, offers Capital on Tap with a funding source to enable its product development and support for small businesses.
This transaction comes at a time when traditional lenders are tightening credit access, reinforcing Capital on Tap’s role as a partner for SMBs.
This transaction achieved a milestone for the firm, acquiring investment grade ratings on the bonds issued.
This external validation reflects investor confidence in the “performance” of Capital on Tap’s assets, which are generated by its portfolio of small business customers.
The deal has reportedly attracted demand from a range of investors.
Damian Brychcy, CEO at Capital on Tap said that small businesses are the backbone of the economy, but there may “be times when some face challenges and they need additional sources of support.”
This deal isn’t just a financial milestone; it’s “fuel for tbeir mission.”
They added that achieving investment grade status from their new master trust indicates the “resilience” of their customers and the strength of their platform.
This funding now allows them “to double down on empowering SMBs with the tools and credit they need to thrive.”
The transaction was structured and distributed by a syndicate of FIs with BNP Paribas, Citi, Lloyds, Societe Generale, and SMBC Group serving as Joint Lead Managers.
Ghanem Al-Araj, MD, BNP Paribas said that BNP Paribas is pleased to have supported Capital on Tap on its “debut master trust issuance, a transaction which represents an important milestone for the company.”
Sebastian Walf, EMEA Head of ABS at Citi that they are pleased to have acted as Arranger and Joint Lead Manager on Capital on Tap’s inaugural Master Trust issuance.
The master trust offers a flexible platform for Capital on Tap to access the capital markets, securing “the long-term funding necessary to support its mission of empowering small business owners.”
As covered, Capital on Tap says it wants to make it simpler for small businesses to manage their business spending, “access funding, and earn cashback, travel, and gift card rewards.”
Small businesses have reportedly spent more than “£20 billion on their Capital on Tap Business Credit Cards across the US and UK.”