SME digital bank Cashplus is out to raise £50 million in new funding to support growth and unlock a higher proportion of deposit funding for SME lending following bank authorisation.
The 15-year old firm was granted a full UK bank licence earlier this month and now holds £500m of customer deposits, a portion of which are immediately available to deploy for lending.
Since launch in 2005, Cashplus has opened a total of more than 1.6m accounts, including 150k SME accounts, across its digital banking and credit products and lent more than £640m.
Founder and CEO Rich Wagner says: “Where some firms have burned through piles of cash in the pursuit of customer growth at all costs, our cash generative model means that we can grow with confidence and deliver outstanding returns. Now we’re a bank, there is a tremendous amount of potential waiting to be unlocked by an outside investor looking to back a tried-and-true business with an established position in the SME fintech space.”
Cashplus currently serves seven percent of all new UK businesses and is bidding to grow its share to at least 10% within the next three years.