Helping small businesses thrive
Since launching 7 years ago, Capital on Tap has obsessed over helping small businesses.
From credit facilities, to expense management and integrations with accounting software - Capital on Tap is committed to providing small businesses with simple and painless access to funding - and letting SMB owners put their focus back in to running their business.
Now serving a rapidly growing customer base of 70,000 small businesses, Chief Operating Officer Damian Brychcy tells us how optimising the way the business takes payments is supporting Capital on Tap as it continues to scale up.
A shared ethos
Capital on Tap has been using GoCardless for 6 years – after taking payments by card quickly proved an inefficient method for collecting monthly repayments. Damian explains:
“It became clear early on that card payments are expensive. As our customer base started to grow and the number of repayments we were taking each month increased, it quickly became unscalable.”
Damian found GoCardless by keeping up to date with, the then much smaller, London fintech scene and saw that the two businesses had a shared ethos. He says:
“It was clear that GoCardless shared our commitment to making life easier for small businesses. So it was a great fit for a partnership - and we knew that taking payments by Direct Debit would be easier for our small business customers too.”
The pull based nature of Direct Debit payments meant that Capital on Tap customers could set up the payments once and relax, without worrying about initiating the payments each month - and for the business, Capital on Tap benefitted from the cost saving that comes with avoiding costly card networks.
“Our small business customers know exactly how much they are paying back and when it comes out each month and for us, we can substantially reduce the overhead and cost of managing customer repayments.”
Since moving to GoCardless, we have reduced the cost of processing payments by 90%”
Processing payments at scale
Capital on Tap processes £70million in repayments each month – £50million of which is paid via Direct Debit through GoCardless.
“We needed a payment provider that could grow with us. GoCardless just works all the time and as a result we have successfully moved 80% of our customers over to Direct Debit – and this is only going to increase as we have made it the mandatory payment method for our new customers in the UK.”
Despite the business’ rapid growth and the amount of customers now paying through GoCardless, Capital on Tap has been able to keep payments admin at a minimum:
We have always just had one person managing our payments - the difference now is that the company is 100 times the size, and this is still manageable because with GoCardless it’s so much easier.”
Expanding to new markets
Having had success with GoCardless in the UK, Capital on Tap recently decided to expand their Direct Debit offering to their customers in Spain:
“We aim to use best in class providers and having already processed hundreds of millions of pounds through GoCardless in the UK, we know that they’re the best for Direct Debit, so it was a no brainer,” Damian says.
“It’s also great for our Spanish customers, they know and trust GoCardless and Direct Debit as a payment method too,” he adds.
The journey doesn’t stop there for Capital on Tap as they work to help more and more small business around the world thrive:
“We will absolutely be looking to expand our use of GoCardless as we move into new markets. With payments being collected in the background, it means we can focus on growing the business and providing the best service for our customers as we expand in the UK and around the world.”