Capital on Tap readies Series 4 securitisation as UK SME-card receivables reach £1.7bn

Capital on Tap is preparing its fourth securitisation of UK business credit-card receivables as the fintech’s domestic receivables book reaches £1.7bn, giving institutional investors another route into credit generated by small and medium-sized enterprises.

KBRA and S&P Global Ratings assigned preliminary ratings on 1 September to notes expected to be issued by London Cards Master Issuer plc under the OnTap Master Trust structure. The assets consist of credit-card receivables originated and serviced by New Wave Capital, trading as Capital on Tap. S&P describes Series 4 as the fourth securitisation of receivables originated by the company.

Capital on Tap had approximately 190,000 customers and £1.7bn of UK credit-card receivables at the end of June, according to KBRA. That figure represents the lender’s wider UK receivables balance rather than the amount being securitised in Series 4. The size of the new notes has not yet been disclosed and the ratings remain preliminary, so the transaction should not be characterised as closed.

The structure includes a revolving period scheduled to run until September 2029, with the possibility of an extension of up to 12 months. Credit enhancement is expected to come principally from subordination of junior note classes, excess finance-charge collections and a liquidity reserve.

One of the more technical features is a 1.8% discount percentage. Principal receivables are purchased by the trust at a discount and an equivalent portion of principal collections is subsequently treated as finance-charge collections through the revenue waterfall. Interchange fees generated by card spending remain with Capital on Tap rather than flowing into collections available to the trust.

For receivables financiers, Series 4 shows how a large pool of relatively granular SME obligations can be converted into capital-markets funding rather than remaining entirely on a non-bank lender’s balance sheet or being funded through bilateral warehouse facilities.

Capital on Tap has used large institutional facilities before. BCR covered £750m of funding from BNP Paribas and Citi in February 2025. The latest development is different because it concerns another issuance through the company’s securitisation infrastructure rather than a repeat of those bank facilities.

The Series 4 note amounts, final ratings, pricing and closing date remain outstanding. Until those are confirmed, the most significant disclosed figure is the underlying scale of Capital on Tap’s UK receivables franchise, now standing at £1.7bn.