Tide is set to launch a pay-in-four buy now, pay later (BNPL) credit product for eligible clients following the acquisition of a £100 million debt facility from Fasanara Capital.
Credit Flex is a short-term loan option integrated into the Tide app, designed to assist clients in managing their cash flow. Eligible members can be pre-approved and access up to £5,000 in credit immediately. Each loan has a four-month term with an interest rate of 3.3% per month. Members can leverage Credit Flex to spread costs into smaller monthly payments, helping to maintain their balance.
In late 2023, Tide made Credit Flex available to about 5,000 users, where it gained significant popularity. Earlier this year, the company secured the £100 million securitization debt facility from Fasanara Capital Ltd, a London-based investment manager, enabling the expansion of Credit Flex to all UK members.
Oliver Prill, CEO of Tide, stated, “As one of the UK’s leading SME lending intermediaries, we collaborate with more than 120 lenders to provide strategic funding solutions. We recognize that flexible, short-term working capital is vital for small businesses, where cash flow management poses ongoing challenges. The new Fasanara facility allows us to extend Credit Flex in a way that will benefit more of our members, enhancing the efficiency and responsiveness of our service.”