Capital On Tap has secured £90 million in debt funding from M&G Investments and Triple Point Investment Management, along with a £50 million debt line from Citibank and Pollen Street Capital.

The startup is not publicly disclosing its valuation, but it has now raised over £30 million of equity and £200 million of debt to date.

Since its launch in 2012, Capital On Tap has challenged major banks, by offering small businesses a faster and more transparent way to fund their business. It has already provided over £500 million in funding to more than 40,000 small and micro businesses across the UK.

The company plans to use the additional financing to accelerate growth in the UK and replicate the model in other geographies across Europe.

“We continue to see small businesses being underserved by banks and offered really poor service, we are trying to solve that issue,” said chief executive David Luck.

Luck founded the company with George Karibian and Jan Farrarons – who also set up London-based payment services provider Paymentsense.

James Pearce, head of direct lending at M&G Investments, commented: “It is essential for businesses of all sizes to have access to credit facilities in a timely manner in order to grow and to manage cashflow – this deal brings much needed cashflow to small businesses whilst benefiting our pension fund clients.”

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