Welcome to the community
IMPORTANT: Tide Community is closing - we’re building something better!
Thank you for sharing your feedback, questions and ideas. We very much appreciate your contributions - and now it’s time for something new. To better support you, and to showcase your businesses, we’re developing a member directory.
5th February 2021: This forum is now ‘static’ so it's not possible to add a new topic or comment.
Summer 2021: The forum will close. Read more
The key issue is that Tide is NOT a Licensed Bank. And hence cannot borrow from the Bank of England, like other banks. See the link to the article. So Tide, and others similarly situated, are struggling to get money to lend. This mess is not entirely their fault - but surely Tide could muster their customer base to assist in lobbying (BBB, BofE, Treasury, MPs) so Tide CAN access funding from BoE to on-lend.
I have no idea how many business customers Tide have. But assume 50,000. And assume ALL are eligible for and apply for the maximum £50K BBL. That totals £2.5bn. Yes billion. So clearly, that is nothing like how much BBL capacity is needed by Tide, as many will not qualify for the maximum or even apply. But Tide needs the capacity to lend to all that meet the BBB eligibily criteria. So what capacity to they need? Tide clearly has some funds to lend but they must, like all others, find more funds somewhere. Others can go to Bank of England. Where can Tide go if BofE not open to them? My sense is Tide is trying to access funds and trying to keep its customers “on side” with promises. Maybe a better approach would be to be upfront, admit they do not have unlimited access to funds and give a timeframe as to WHEN specifically they will have enough money to lend to all their qualifying business clients. Anyway, just my view and I am supportive of Tide and willing to assist to ensure they get access to all the funds they need.