Not a bank

Not a bank

Cashplus, a London-based alternative financial services provider has announced two new, three-year funding arrangements totalling £30 million ($40.52 million), reports Paybefore (Banking Technology‘s sister publication).

Senior debt facilities will be provided by NatWest/Royal Bank of Scotland (RBS) with BCI Finance, the investment division of Blenheim Chalcot, providing mezzanine financing.

Although not a bank, Cashplus says it has seen a huge demand for its banking services providing specialised credit products through its digital and mobile platform. With more than 1.3 million customers since inception, the company has provided £180 million ($243 million) in financing over the past five years, focusing on the SME sector.

Cashplus will use these new funding lines to expand its credit offerings – primarily investing in and strengthening its SME products.

The news comes after the company reported its sixth year of profitability in June and the launch of its API in March. With a 28% uplift in revenues and 36% increase in profit, the company reported a £5.6 million ($7.55 million) EBITDA profit for the year ended March 2017.

“We continue to see strong demand for our SME and consumer products as we build out our strategy to be the first-choice digital challenger to banks,” says Richard Wagner, CEO of Cashplus. “This continued investment in Cashplus will allow us to accelerate our growth, especially in the SME market, which is the backbone of the UK economy.”