If you’re looking for a business credit card with a cashback scheme and no annual fee, Capital on Tap could be worth considering. The card pays 1% cashback on all spending with additional cards available at no extra cost.
Representative Example:
At an assumed credit limit of £1,200, at a purchase rate of 35.15% p.a. (variable), the APR could be 35.15% (variable). Credit available subject to status.
Pros
- Earn 1% cashback (uncapped) on all spending
- Market-competitive APR
- No annual fee
- Unlimited employee cards and virtual cards at no extra cost
- Integrate with accounting software
- Purchase protection from Capital on Tap
- No late fees, foreign transaction fees (for use abroad), or ATM fees.
Cons
- Minimum turnover requirements
- May be offered a higher APR
- No branches
- To redeem points as Avios requires a Business Rewards upgrade at £99 per year.
Table of Contents
About Capital on Tap
Capital on Tap is a business lender with around 20,000 customers across the UK and the US. When it launched in 2012, the provider offered fixed-term loans to small businesses. In 2016, it launched a credit card, which is now the only product on offer.
Capital on Tap is an app-only provider.
Key features
- Credit limits up to £250,000
- Earn 1% cashback on purchases
- No annual fee
- Low purchase rate (subject to status).
Charges
This card comes with no annual fee, and the purchase rate could be as low as 15.22% (variable). However, depending on your business credit score and individual circumstances, the rate you are offered may be higher, and the representative annual rate is 35.15% (variable).
While there’s no interest-free promotional period, you’ll have 42 days to clear the balance before starting to accrue interest.
The card does not charge late payment fees, or foreign exchange fees when using overseas.
For £99 a year, customers can choose to upgrade the card to Business Rewards. This entitles them to bonus reward points which can be converted into Avios (more on this below).
Cashback and rewards
The Capital on Tap business credit card offers 1% uncapped cashback on all purchases paid in the form of ‘reward points’, with each point being worth one penny.
These points can be converted into cashback and credited to your account, or redeemed for discounted gift cards.
Customers who have upgraded to the Business Rewards scheme can convert rewards points collected into Avios. There’s also a welcome bonus of 10,000 reward points, worth £100, that can be earned after spending £5,000 in the first 3 months.
The Business Rewards upgrade can be purchased at any time, and there’s no requirement to renew it if you change your mind.
What it offers
Capital on Tap offers credit limits of up to £250,000, but the amount you are offered will depend on your business finances and personal circumstances.
If you need to make a purchase that exceeds your credit limit, Capital on Tap allows you to ‘preload’ the credit card with additional cash – and earn 1% cashback on the entire purchase.
You can request additional cards for employees free of charge, and set spending limits for each through the Capital on Tap app.
Users also have the option to create unlimited ‘virtual’ cards, with tailored spending limits and expiry dates, to help manage costs.
The app automatically categorises spending, and can integrate with accounting software such as Sage, Xero and FreeAgent.
While Capital on Tap is an app-forward provider, customers can also access 24/7 phone support.
Protection
Capital on Tap business credit card customers can claim a refund through the provider if:
- An item they order does not arrive
- A purchase is faulty or damaged, and the supplier fails to replace or refund it
- A company goes out of business before delivering the goods or services you purchased
- An event is cancelled and you have already paid for accommodation or travel.
While Capital on Tap provides its own protection, it’s worth noting that business credit cards are not covered under Section 75 of the Consumer Credit Act.
Will I be eligible?
This credit card is designed for UK business owners, directors, and majority shareholders with at least a 25% stake in the company.
To be eligible, your business must be registered as a private company (Ltd) or limited liability partnership (LLP), and have an annual turnover of at least £24,000. Sole traders cannot apply for the card.You must also hold a business current account, and have no outstanding County Court Judgements (CCJs) against you or your business.
Capital on Tap application process
You can apply for a Capital on Tap business credit card online.
According to the provider website, filling in an application can take as little as two minutes.
First, you’ll need to click the ‘Apply now’ button on its website.
You’ll be taken to an online form, and prompted to provide the following information:
- Full name, address, date of birth and contact information
- Your business’ name, registered address and company registration number
- Average monthly turnover of your business
- Details for the bank account you’ll be using to pay credit card bills (must be a business bank account)
Capital on Tap will use this information to determine if it can offer you a credit card, the APR you’ll pay, and the credit limit you can access.
As part of the process, it will run a ‘hard’ credit search on your business. This search will appear on your business credit report, and may influence your business credit score.
Capital on Tap also runs a ‘soft’ personal credit check – but this won’t influence your personal credit score, or appear on future credit reports.
If your application is successful, your new credit card should arrive in the post after two business days.
What more should I know?
As with any credit card, it’s important to use the Capital on Tap business credit card carefully. If you don’t pay your balance in full, the interest you’ll pay is likely to outweigh any cashback you’ve earned.
Although this card comes with a relatively low representative APR of 15.22% (variable), you may be offered a higher rate depending on you and your business’ credit history.
Is it the right card for me?
If you’re looking for a business credit card that offers cashback with no annual fee, Capital on Tap could be worth considering.
Since there aren’t any foreign transaction fees, it could equally prove useful if you or your employees regularly travel overseas for business.
The card may be well-suited for business owners who are comfortable handling their finances via an app, since there’s no physical branch to visit.
What are my alternatives?
If you expect to carry a balance on your business credit card, it could be worth looking for an option that comes with a 0% interest introductory period, in order to give yourself some breathing room.
On the other hand, if earning points and cashback is a top priority and you don’t mind paying an annual fee, other business credit cards may offer more generous reward schemes. For longer-term borrowing, a business loan may be better suited to your needs.
Capital on Tap customer service
Capital on Tap has a 4.7 star rating on independent Trustpilot from more than 13,500 reviews. This places the provider in the ‘excellent’ category.
Clients say it’s easy to get in touch with a member of the customer service team, and issues tend to be resolved quickly.
- Capital on Tap runs a 24/7 helpline, which can be reached on: 020 8962 7401
- Alternatively, enquiries can be emailed to contact@capitalontap.com
- During business hours, you can expect an email response within four hours.
- There’s also an online chat function, which is open daily between 8am and 8pm.
Frequently Asked Questions
Is Capital on Tap safe?
Capital on Tap is authorised and regulated by the Financial Conduct Authority (FCA) to issue credit.
If you experience a problem, and you’re unhappy with Capital on Tap’s response, you can make a complaint to the Financial Ombudsman Service, which will review your case independently.
You’re also protected by section 75 of the Consumer Credit Act. This holds Capital on Tap and the retailer jointly responsible for faulty or damaged good purchased with the card, or when the firm goes out of business and never materialise, for example.
Purchases of more than £100 and up to £30,000 are covered.
Elsewhere, you’ll find some handy anti-fraud features, such as the ability to instantly freeze a credit card if it goes missing, and virtual cards for online use.
What happens if I miss a payment?
Capital on Tap doesn’t charge late payment fees, but paying your bill late, or skipping one altogether, could have a negative impact on your business credit score.
If you expect to miss a payment, it’s a good idea to contact Capital on Tap directly.
Often, credit card providers can help you set up a repayment plan.
Will applying affect my credit score?
Applying for a business credit card can affect your business credit score.
When you apply, the provider carries out a credit check, which allows it to look at your business credit score and credit history.
This information helps determine whether it can lend to you based on your business finances, and how you’ve handled credit in the past.
All applications for credit are visible on this report.
However, your personal credit score is separate, and is not impacted by applying for a credit card in the name of your business.
Can I increase my credit limit?
You can request a credit limit increase at any time by getting in touch with Capital on Tap’s customer service team.
The request will need to be reviewed, and you’re not guaranteed to receive an increase.
As part of the review process, Capital on Tap may run a credit check on your business, which will show up on business credit report.
Credit limits are also reviewed periodically, so you may be offered an increase without requesting one.
To improve your chances of securing a credit limit increase, stay within your current limit, and consistently make payments on time.
Is Capital On Tap part of Capital One?
Capital On Tap and Capital One have similar names but are two separate companies.
Capital One is a US bank, while Capital On Tap is a UK-based business credit card provider.