The Capital On Tap Business Credit Card comes with a key advantage that you’ll have trouble finding elsewhere: the ability to transfer cash fee free directly to your high street bank account. This could provide an easy source of short-term funds for small businesses. There’s no annual fee on the card nor are there fees on foreign transactions or foreign ATM withdrawals. The representative APR on the card is high though, so you have to be especially careful about paying down your balance.
Credit Rating Requirement: Good/Excellent
What I like
The Capital On Tap business credit card has removed any barriers to entry, with no sign-up fees or annual fees. When you include the opportunity to lower your APR and no fees for overseas usage and ATM withdrawals, you are looking at a nice basic package.
- Access to capital – If there’s one thing that almost all businesses need, it’s capital. The typical business credit card provides access to spending power when you use the card, but the Capital on Tap card provides the option to transfer money to a high street bank account. That gives a lot of flexibility, as many small businesses can’t use a credit card for all of their expenses. But bear in mind that this is very short term funding. Though the transfer itself is fee free, the funds are not, and the representative APR for the card is high. Which makes this a potential source of revolving credit, but not long-term funding.
- No fees – One of things that sets this card apart is its lack of fees. There are no fees for taking out the card and then, if you choose the standard package, no monthly or annual fees for using the card. As an extra bonus, Capital On Tap doesn’t charge non-sterling transaction fees or fees for ATM withdrawals, meaning the cost of using this card is lower than it would otherwise be. One thing to be aware of, though, is that the interest on cash withdrawals is relatively high – so if you do need to make ATM withdrawals with the card, try not to have them sitting in your balance for a long time.
- APR reduction – While the card’s headline APR is comparatively high, cardholders do have the opportunity to reduce their rate is they demonstrate good borrowing behaviours. Depending on your account management, your rate could be reduced to anything from 0.79% to 2.84% per month.
- Supplementary cards – Capital On Tap offers up to 10 free supplementary cards for employees or partners, and you can set individual spending limits for each card.
What could be improved?
While the Capital On Tap business credit card avoids fees, the flip side is that you don’t get many added rewards as part of your package.
- No rewards – On the standard package offered by Capital On Tap, you won’t get any additional rewards (such as cashback or reward points). Capital on Tap offers a Rewards Business card separately, which will give you access to cashback rewards and Avios points if you are willing to pay an annual fee. But if you are looking at the basic credit card, don’t expect many added perks.
- Introductory periods – Other than the standard up to 56 days interest free on purchases, the card has nothing in the way of interest-free introductory periods.
How does it stack up?
While other cards may offer more in terms of rewards and introductory periods, the Capital On Tap business card focuses on making borrowing accessible. The card’s selling points are the flexibility in how you borrow — that is paying with your card or sending funds to your bank account — and the lack of fees attached to signing up and to using the card (bar the usual late or missed payment fees). While the headline APR is relatively high, the opportunity to potentially lower your rate also makes the card stand out from other cards on the market.
Capital On Tap requires applicants to have at least 12 months of trading history and a turnover of at least £24k per annum. Additionally, your application will not be accepted if you have had any unresolved county court judgements (CCJs) against you or your business in the past 12 months. Limited companies, sole traders, partnerships and limited liability partnerships are eligible to apply for the card, but they must be UK based.
How do you apply?
Applications can only be made online. The application requires you to provide information regarding your business, including — if you are limited company — your registered number, and some personal details.
Applicants receive an instant decision and, if your application is approved, funds can be accessed immediately online and you will receive your card in four business days.
Is the Capital On Tap business credit card right for you?
If you are a small business or a sole trader that is looking for a flexible source of short-term funding, then the Capital On Tap business credit card could be one to consider. The lack of certain fees — namely annual fee and foreign transaction fees — is hard to not like. All in all, decent levels of flexible credit, the ability to reduce the APR through good account management, no overseas usage fees or ATM withdrawal fees, plus no annual fees, you are looking at a good overall basic package. However, it bears repeating that there are no 0% introductory periods here and the standard APR is high, so good credit behaviour is essential. Finally, if you are looking for rewards such as cashback, other business cards (including Capital on Tap’s Business Rewards Card) may be more suited to your needs.
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