Fly Now Pay Later is a credit intermediary that sources loans for individuals and businesses wishing to fund travel in installments of between three and 12 months. The brand also offers a B2B facility for travel providers.

Despite its name, the company’s website says its loans are repayable “either before you fly or soon afterwards, depending on what we can offer you”.

Co-founder and chief executive Jasper Dykes said the start-up would use the funding to develop payment systems and launch a consumer payments app, although he added:

"Few industries have been affected as significantly as tourism in the wake of Covid-19. Many companies have been affected and we are not different. This investment is a welcome boost to the sector, and provides us with adequate cash flow to help steer us through these challenging times."

The equity and debt funding is led by asset management firm Revenio Capital with Shawbrook Bank and BCI Finance.

Investment will also see expansion into Europe, beginning with Germany in the second quarter of 2020, followed by France later this year. The travel payment provider currently employs 70 staff in the UK.

Dykes said: “It’s predicted that once lockdown restrictions begin to ease, airlines will need to recoup costs - leading to unavoidable price rises in the future. By removing financial boundaries, we hope to open the post-Covid-19 world for travellers and reconnect people with their friends and families around the globe.” 

He added: “Our proprietary platform has been designed to make instantaneous credit decisions - providing digestible payments options to consumers traditionally underserved by existing credit institutions.”