Another week, another alternative finance launch. This time, it’s Spotcap, a new entrant that lends to businesses through a single product, which is a combination of a line of credit and a business loan. “When a business decides to draw from their line of credit, the product becomes a standard business loan,” the company says.
Spotcap’s founders say it will be differentiating itself in a number of ways, some based on technology. Spotcap says it uses a unique credit algorithm “That allows it to make a quick, yet rigorous assessments of an SME’s financial condition. This gives it deep insight into the financial condition of the SME business based on basic information and documents that SMEs upload during the online application process.” Once an application is complete, Spotcap promises, the approval process usually takes no more than one working day.
UK the latest territory for Spotcap
The company has already started lending to SMEs in Australia, Spain and the Netherlands, and the UK is next. In the UK Spotcap will offer credit lines of as much as £150k. In Australia Spotcap lends amounts up to $250,000, in the Netherlands €250,000, and in Spain €100,000.
The credit line establishes the maximum amount of money a business is eligible to borrow. In the UK this cap is £150K for direct borrowers. The advantage of a credit line over a traditional loan is that a business can withdraw under its credit line flexibly. The business chooses when and how much they need and only pay for what they use. Every repayment tops up the available credit line amount.
“Spotcap understands Britain is open for business,” said Niels Turfboer, Managing Director Benelux & UK. “We believe that the underlying economic dynamics of the UK economy are unchanged and that SMEs will need capital to make the most of opportunity in turbulent post-Brexit times. We look forward to working with them to maintain Britain’s strong entrepreneurial and creative prowess.”