Capital On Tap Review

Capital On Tap is a finance provider that began as a small London startup in 2012, growing to a UK-wide provider of business funding through a business credit card product. With an excellent reputation on TrustPilot and over £4 billion lent to businesses as of 2023, is Capital on Tap the right lender for you?

Considering a vast majority of lenders offer business loans rather than credit cards, what is the value of Capital on Tap’s offer and does it suit your business needs? We’ll answer this question and more in this impartial overview that helps break down what the brand offers. 

Here at Rangewell, we’re experts in the finance industry and work across all lenders on the market to find the best deals for our clients. If you’d like to take out a loan to bridge cash flow gaps, or you’ve already applied to Capital on Tap and want to see why you might have been refused, read on to learn more or get in touch with our team today.

What is Capital on Tap? 

Capital on Tap is a UK finance provider specialising in credit cards that help SMEs plug cash flow gaps. Rather than offering business loans, Capital on Tap provides credit cards with variable annual percentage rates of interest that depend on your business and circumstances. 

Capital on Tap has supported over 200,000 businesses in the UK with loans totalling more than £4 billion in credit. In 2021, the lender opened an American office in partnership with WebBank, now offering services in the UK and US. 

The lender aims to offer simple, straightforward support to its customers, with UK-based support lines and generous cashback offers. 

What types of loans does Capital On Tap offer?

Capital on Tap does not offer traditional business loans. Instead, the company offers a business credit card service which allows businesses to make purchases and repay at an agreed interest rate. Essentially acting as a flexible loan product, this credit card can be highly useful for the right type of business but must be understood before you decide to apply for one. 

The credit card product offered by Capital on Tap allows for credit limits of up to £250,000 for those eligible. Rates are generally higher than on any personal credit cards, starting from 15.2% APR rates (variable). The card also provides a 1% cashback bonus, which adds a degree of appeal for businesses that make frequent transactions. Perhaps most crucially, the card offers 56 days of interest-free credit on eligible purchases. 

If you’ve been looking for business finance, have you considered whether a business loan or a business credit card is the better fit for you? Before you default to Capital on Tap, speak to Rangewell, and we’ll help you make sense of both products and how they’ll impact your business and cash flow. 

Are you eligible for a loan from Capital On Tap?

Capital on Tap may not provide traditional business loans, but the eligibility criteria is similar to that expected by many other independent lenders. To be able to take out one of their credit cards, you’ll need your business to:

• Have a turnover of more than £2000 per month
• Have no unsatisfied CCJs against your business in the last 12 months
• Have at least six months of operating history 
• Be registered with Companies House
• Be either an LLP or LTD company

In addition, you’ll need to sign a personal guarantee – which is a document that makes you responsible for repaying your business’ debts if the business itself fails to repay. If you have a low personal credit score, you won’t be able to sign a personal guarantee and may therefore be refused finance. 

What information do you need to provide? 

Capital on Tap keeps its application process fast and streamlined by asking for only the most relevant information for your business. When you apply, you’ll need to fill out some basic details about your business and provide some financial information too. 

If you’re an operating business, we’d recommend having 3-6 months of bank statements and your latest accounts to hand, as any information you’re asked for will be contained within these documents. If the lender asks for more information, having them to hand will save time and speed up the application.

What are the rates and terms? 

Unlike a business loan, which are granted over a set ‘term’ period, the Capital on Tap business card does not have a fixed term. Instead, you’ll be able to use the card as you wish and make repayments based on spending. 

There is, however, a 56-day period of interest-free credit that you should factor into any financial projections. 

Interest rates are generally higher than other forms of lending. New customers may be able to access a low rate of 15.2% (representative APR 34.3% variable), but this will be based on your specific background and business performance. 

Want better rates or different terms? 

Whilst the flexibility of a credit card agreement may be appealing, the interest rate offered by Capital on Tap might not suit your business and lead to problems with cash flow. Speak to our team, and we’ll help you find a more suitable finance arrangement at no cost to you. 

What are the fees and charges?

Capital On Tap is a relatively inexpensive financing arrangement with no fees to pay when applying or taking out a card. Provided you repay your credit within the interest-free period, businesses won’t face hidden charges. 

Should you fail to repay credit in time, there is a late repayment fee, but the amount charged will depend on your arrangement with the lender. 

How do I apply?

Capital on Tap offers an extremely simplified application process when compared to more traditional lenders. To apply, you’ll need to head to their website and click ‘apply now’. You’ll then need to fill out some information about your business and submit the form – which the brand claims takes as little as 2 minutes. 

Once approved, you’ll receive a virtual credit card you can use to make purchases immediately, with a physical card following in the post. 

What if you are rejected by Capital On Tap? 

New businesses, or those with income that falls below the £2000 threshold may be turned down by Capital on Tap due to perceived risks with repayment. However, there are still many other options for lenders that will fund newer companies, so don’t be discouraged. 

Instead, speak to Rangewell today, and we’ll help you understand the lender’s market, advise you on the best options for you and even apply and negotiate on your behalf to ensure you get the best deal – all for free. 

What to do if your Capital On Tap loan is coming to an end

The Capital on Tap credit card agreement isn’t like a traditional loan with a fixed term length – but there will invariable come a time when your arrangement approaches its end. If you’d like to raise new capital, you can either approach Capital on Tap again (though their best rates tend to be for new customers), or negotiate with a new lender for a business loan or different business credit card. 

Need more funding? 

Considering that Capital on Tap’s card has a limit of £250,000, lots of businesses may need a different kind of finance arrangement. Here at Rangewell, we’ve helped companies raise millions of pounds for all sorts of requirements, from property development and commercial mortgages to sector-specific finance such as GP practice loans. 

If you’re in the market for finance, speak to Rangewell, and we’ll find you a lender that understands your goals and can offer the level of credit you need.