Are Capital On Tap Business Credit Cards Best For SMEs?

Key Features of the Capital On Tap Free Rewards & Business Rewards Cards

Both Cards

Both the ‘Free Rewards’ and ‘Business Rewards’ card share mostly the same features:

• Credit Limits: Up to £250,000
• Representative APR: 36.19% APR variable for the free card and 59.15% APR variable for the rewards card
• Uncapped 1% Cashback: Earn 1% cashback on every pound spent on business expenses, like bills and fuel. This includes employee card spending and it has no limits to the cashback you can earn.
• Preloading: Both cards have a preloading feature, meaning they can be funded and used similar to a debit card. This means spending beyond the credit limit and earning more rewards.
• Exclusive Partner Offers: Get special offers on services like Sage and Slack.
• Unlimited Employee Cards: Issue an unlimited number of employee cards for free, including both virtual and physical cards. Each can have their own limits and can be frozen instantly.
• Accounting Software: Both cards types can be synced with various popular accounting software, including the discounted Sage offering.
• Zero FX fees: Spend oversees without worrying about Capital on Tap charging conversion fees.
• Application Process: 2 minute online application with an instant decision.
• Accessing Funds: Draw down funds to your bank account within minutes.
• Card Usage: Visa is globally accepted and zero FX fees.
• ATM Withdrawals: Up to £400 per day (fee-free)  .
• Accounting: Sync accounts with major software providers like Sage and Xero.  
• Employee Cards: Unlimited cards with customisable limits.  
• Repayment Options: Full, fixed amount, weekly or a 10% minimum.  
• Account Management: Mobile app focused but with an online terminal. 

Free Rewards Card

The Free Rewards card has one key advantage:

• Annual Fee: No joining, monthly, or annual fees are associated with this card.

Business Rewards Card

Their business rewards card offers more rewards in exchange for the £99 annual fee.

• Annual Fee: £99 per year
• Initial Bonus: 10,000 bonus points after spending £5,000 inside the first three months.
• Avios Points: You can redeem your points for Avios points (1 point per £1 spent). However, you can also redeem points in other ways too, such as retail vouchers.

About Capital on Tap

Capital on Tap started as a small London startup in 2012. Its vision was to modernise finance for entrepreneurs, making it accessible and with better usability. Capital on Tap’s business credit cards aims to strike a balance of providing straightforward rewards for as little cost as possible (e.g., a free plan option, free employee cards, and no FX fees).

Since 2012, it has raised over £350 million in funding. As of 2024, it has funded £10 billion to its 200,000 customers. Much like the fintechs of 2010-2015, its strategy was to focus on feature-rich app development, 24/7 customer service, and undercutting legacy providers on fees. 

What are the eligibility requirements?

Capital on Tap has fairly low eligibility criteria, although it isn’t open to sole traders, freelancers or companies with revenue below £24,000 per year. Your approval and credit terms will depend heavily on your creditworthiness and current financial position.

Basic eligibility requirements:

1. Company Role: You must be the director or majority shareholder.
2. Business Type: Your business is a Private Limited Company (Ltd) or Limited Liability Partnership (LLP). Sole traders are therefore not accepted.
3. Geographical Location: You must reside in the UK with a UK registered business.
4. Business Turnover: Minimum annual turnover of £24,000.
5. Credit History: No unsatisfied County Court Judgments (CCJs) in the past 12 months.

Who is not eligible for Capital on Tap:

1. Charities, funds, trusts or Royal Charters.
2. Public Limited Companies (PLCs).
3. Sole-traders.
4. Dormant, dissolved, or inactive companies.
5. Start-ups with annual revenue below £24,000 per year.

What are the fees?

Capital on Tap Employee Cards

Capital on Tap allows an unlimited number of free employee cards, each with its own spending limits and uploadable images of receipts. Business owners can have visibility and control over all employee spending in real-time, making reimbursements easy and accounting streamlined. Importantly, employee spending can earn you rewards, and larger employee spending can be made by preloading the card with extra funds. 

Rewards are even collected on the free virtual cards, too, which can be instantly created and terminated. You can compare their rewards with other business credit cards offering rewards for UK SMEs here.

How secure are their business credit cards?

All cards use Visa, which provides a good foundation of security. Visa’s Zero Liability Policy means you’re guaranteed not to be held responsible for fraudulent or unauthorised payments. Capital on Tap provides its own card purchase protection, which covers you if you purchase an item that doesn’t arrive, is damaged, isn’t what you expect, or if the supplier goes bust. There’s a 24/7 customer service team to contact when things go wrong or to raise a dispute.

Fraud is already less likely to happen because of the quick, centralised control over all employee cards. With instant freezing, lost cards can be blocked from future purchases, and controls can be placed on less-trusted employees. From a cybersecurity perspective, virtual cards can be created and disabled easily, which limits the impact of your card details being breached online.

What is Capital on Tap’s Preloading feature?

Preloading is a new feature introduced in 2024 that allows you to top up the card’s balance with funds. This is rarely an option for credit cards, meaning it acts as both a debit and credit card simultaneously. The only difference is that the funded money is ‘E-Money’ unlike a debit card and is therefore subject to different safeguarding rules.

The benefit of preloading is that while large credit limits can be accessed, it’s also possible to spend and earn rewards without using credit. More reward-eligible spending can therefore occur.

Are the Capital on Tap cards recommended for using abroad?

Yes, Capital on Tap cards are Visa, which is far more globally accepted than Amex. There are also no currency exchange fees besides the ones that Visa charges at their own rate. This is preferable to the many high street bank credit cards, which charge additional FX fees. All rewards are applicable to overseas spending and the Business Rewards card makes it cheaper to fly abroad with its Avios partnership.

How can you apply for a Capital on Tap business credit card?

Capital on Tap is frequently praised for its modern application experience. Not only is the interface and form-filling quick and easy, but its low turnover requirements of £24,000 per year are appreciated by small businesses.

With 4.7 stars on Trustpilot, many reviews point to its almost-instant approvals and a customer service team that always returns calls and emails promptly. Perhaps most impressive of all is the ability to initiate and use a virtual card before the physical card has even arrived yet.

Capital on Tap business credit card vs. Amex

Amex is a credit card powerhouse that is renowned for its strong travel rewards. However, Amex’s 1.6 stars on UK Trustpilot is a stark difference from Capital on Tap’s near-perfect rating. 

Amex has many cards and they all vary when it comes to fees and rewards. The only free card from Amex is the Business Basic Card, which does have up to 20 employee cards, but the app experience is worse and has no virtual cards or rewards.

The biggest reason behind the disparity in reviews is because of Amex’s poor customer service and slow dispute resolution. Amex’s application process is also much slower and typically requires a higher credit score to be eligible (business credit cards that accept applicants with lower credit scores are covered here). 

Amex’s value proposition is its travel rewards. However, they come at the cost of much higher annual fees, meaning it’s only suited to very high spenders. Amex cards are also less accepted around the world than Capital on Tap’s Visa, and when it is accepted, many cards face 2.99% non-sterling fees compared to Capital on Tap’s zero fees. Most of the Amex cards are also chargecards, meaning the full balance must be paid off by the end of the month. 

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