The business credit card platform Capital on Tap has concluded a GBP 500 million asset-backed securitisation deal tied to receivables from its portfolio. This transaction is part of the company’s ongoing London Cards” programme, marking the third such issuance for the firm.

Described by Capital on Tap as the largest non-bank credit card ABS in Europe, this deal provides a long-term funding mechanism aimed at bolstering lending activities to small businesses.

Maintaining a Stable Customer Base

The securitisation has been rated investment grade across all tranches and is underwritten by over 200,000 small enterprises in the UK and US. Company officials indicate that these ratings reflect the consistent performance of the underlying assets and help broaden access to institutional capital during a period when many traditional lenders are becoming more selective with their credit lines.

Strategic Arrangement and Investor Confidence

The transaction was facilitated by an alliance involving several international banks, including BNP Paribas, Citi, Lloyds, Societe Generale, and SMBC Group. These banks highlighted the significance of the issuance in Capital on Tap’s financing strategy and emphasized that it provides exposure to a resilient segment of the UK small business market.

A spokesperson for Capital on Tap stressed that this new structure is designed to ensure the company can sustain credit facilities during periods when access to finance might fluctuate. Additionally, attaining investment-grade status is seen as crucial in supporting ongoing efforts to supply short-term funding tools utilized by a broad spectrum of small enterprises.

Capital on Tap operates a business credit card and spend-management platform serving small companies on both sides of the Atlantic. The company reports that over GBP 20 billion has been spent through its cards, reflecting a growing user base as it expands into the US market.