Tide is to roll out a BNPL pay-in-four credit product to all elgible clients after securing a £100 million debt facility from Fansanara Capital.
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Credit Flex is a short-term loan facility integrated into the Tide app to help clients manage cash flow. Eligible Tide members are pre-approved and can immediately access up to £5,000 in credit.
Individual loans have a four-month term, and an interest rate of 3.3% per month. At the time of a new payment, Tide members can use Credit Flex to spread the cost into smaller monthly payments to avoid a balance dip.
Tide made Credit Flex available to around 5,000 users in late 2023 where it proved to be hugely popular. Earlier this year, Tide secured a £100 million securitization debt facility from Fasanara Capital Ltd, a London-based investment manager to make Credit Flex available to all UK members.
Oliver Prill, Tide CEO, says: “As one of the UK’s leading SME lending intermediaries, we work with more than 120 lenders to enable strategic funding solutions. We know flexible, short-term working capital is critical to the success of small businesses where managing cash flow is a constant challenge. With the new Fasanara facility, we are able to extend the Credit Flex mechanism in a way that we believe will benefit more of our members, improving the efficiency and responsiveness of our service provision.”
