Everything You Need To Know:
What is a business credit card?
A business credit card operates similarly to a personal credit card, but is specifically intended for business rather than personal use. They can be used as a short-term solution for borrowing money, and can be used regardless of business size. They’re also effective for building a business credit profile.
Are business card charges tax deductible?
In the UK businesses can benefit from certain tax reliefs. Business credit card charges can often count as allowable expenses, which means they can be noted and deducted when you or your accountant are calculating your business’ taxable earnings.
What is Capital on Tap?
Capital on Tap is a provider of business overdrafts and credit cards up to £50,000. Since being founded in 2012, they have provided over £1.5 billion in funding to over 100,000 businesses across the UK. Capital on Tap offer customers:
- Up to £50,000 in credit
- No ATM or foreign transaction fees
- Cashback and Avios rewards
- 56 day interest free period
What is a Capital on Tap business credit card?
The Capital on Tap business credit card, is designed to help small businesses borrow money. It is free to sign-up to and allows businesses to borrow up to £50,000 in credit. Capital on Tap offers two business credit cards, the Business Credit Card and the Business Rewards Credit Card.
|Features||Capital on Tap Business Credit Card||Capital on Tap Business Rewards Credit Card|
|Borrow up to £50,000 in credit||Yes||Yes|
|Up to 56 days interest free on card purchases||Yes||Yes|
|No foreign exchange or UK ATM Fees||Yes||Yes|
|10 free supplementary cards||Yes||Yes|
|Earn 1 point on ever £1 spent on card||No||Yes|
|Redeem points for cashback (1% cashback)||No||Yes|
|10k bonus points (redeemable for £100 cashback) when you spend £5k in your first 3 months||No||Yes|
Who owns Capital on Tap?
Capital on Tap was co-founded by CEO David Luck, George Karibian and Jan Farrarons under New Wave Capital Limited in 2012. Since then, the company has helped over 100,000 businesses across the UK, providing over £1.5 billion in finance.
They believe that business funding shouldn’t be complicated or time-consuming, so there’s no surprise that they’ve managed to help so many businesses in just 8 years.
How does Capital on Tap work?
The capital on tap business mastercard allows you to choose to spend on the go, or transfer your available balance into your business bank account. It is one of the easier funding products to be approved for, and submitting an application won’t harm your credit score.
How can I apply for Capital on Tap?
You can apply for Capital on Tap online. You will be required to complete a quick form and disclose some basic personal and business details. Below we have provided the process it takes to receive a Capital on Tap business credit card.
1. Apply Online: Complete their online application form, this will take just two minutes. Be prepared to disclose basic personal and business information as well as your registered trading number.
2. Create a Capital on Tap account: Shortly after you will receive your funding options. Once you have made your decision you can go ahead and sign up for a Capital On Tap account.
3. Receive the business credit card: Capital on Tap business credit cards are sent out the very same day, you can expect to receive your card within just 4 business days and be able to access up to £50,000 in funding instantly.
4. Spend and repay: You can use your new card to spend money, withdraw cash and more. You’re then required to repay any outstanding credit via debit card.
Why choose Capital on Tap vs. competitors?
Capital on Tap’s mission aligns with ours, they are committed to helping businesses not only survive, but thrive. Making borrowing accessible to businesses of all sizes, they offer a flexible funding solution with several advantages that give them an edge. Their business credit card offers:
Quick access: Unlike most credit cards, they provide the option to transfer the available balance directly into your business current account using the online portal and application provided.
Great for small businesses: The Capital on Tap card is purposely designed to help small businesses borrow money easily.
No fees: There are barely any fees attached to this card. Your business can benefit from no activation charges, or monthly or annual fees under their standard package. As well as this, there are no fees for ATM withdrawals and non-sterling transactions, keeping the cost of the card at a low.
On Tap Club membership: There is also an option to upgrade your account to earn 1% uncapped cashback on all card spends. This membership is offered to customers at a £249 upfront annual fee.
Flexible interest: As part of their introductory period offer, you can benefit from receiving up to 56 days of interest free on card purchases, providing each monthly balance is paid off in full.
APR reductions: After demonstrating reliable borrowing, customers have the opportunity to reduce the rate of interest paid.
FCA approved: Authorised and regulated by the Financial Conduct Authority, they are held to lending best practice, and offer customers quarterly account reviews to ensure their funding line grows in sync with their business.
Additional cardholders: Up to 10 supplementary cards for employees are offered for free.
Earn reward points: Under their business rewards card you have options to earn cashback or Avios points.
What is the criteria for a Capital on Tap business credit card?
To be eligible for Capital on Tap your business must have been trading for a minimum of 12 months with turnover equating to at least £24,000 per annum. Your business must be registered to trade in the UK and must not have any unsatisfied CCJ’s 12 months prior to applying.
What can I use my Capital on Tap business credit card for?
Business credit cards are regularly used to make purchases, transfer money, and to withdraw cash. Many businesses use them to help manage cash flow. Interest can be avoided if the debt on the card is repaid in full each month (depending on the account’s policy).
A Capital on Tap business mastercard can be used to spread costs over time and keep close track of business expenses. Operating similarly to a line of credit, they make it easier to manage cash flow.
From purchasing business equipment, to paying invoices or covering travel expenses - there are no restrictions on what you can use your card to purchase, providing the spending is directly for company benefit. Common uses for business credit cards include:
- Staff training
- Travel costs
- Employee spending with clients
- Office expenses
- Purchasing business equipment
- Paying off invoices
Can I get a business credit card with bad credit?
A few credit card providers will offer business credit cards to businesses who have a poor credit rating. However, it is likely that credit card companies will reduce the credit limit and increase the interest rate to try and minimise the potential risk involved.
Alternatives to business credit cards if you have bad credit
Many businesses find themselves in the difficult position where they need a business credit card to build their score, but their existing score is not high enough to qualify for one to do so.
Unfortunately, in the UK there aren’t many credit card providers that cater for bad credit, however there are alternative routes to go down:
Secured business credit card: These cards require lower credit scores for approval because you will need to provide assets as security to the lender. This option should only be considered if you are certain that you will be able to afford credit card repayments to ensure you don’t lose ownership of the collateral.
Consider a business loan: Bad credit business loans help companies with adverse credit receive funding. Perceived as ‘higher risk’, slightly higher interest rates can be charged and the lender will often ask for a personal guarantee as security for using their lending services.
Improve your credit rating: It’s never too late to turn your credit score around, ensure you pay bills on time, keep open and honest communication with vendors and review your credit regularly throughout the year.
What are the benefits of business credit cards?
Business credit cards have ample advantages, not only do they help to quickly build positive credit for your company, they also provide an easy way to monitor your outgoing transactions. When considering business finance, a credit card is a great place to start. The benefits of business credit cards are:
7 Benefits of Business Credit Cards
1. Quick access to cash
Business credit cards can be arranged quickly which means you don’t have to worry about waiting for an approval. After receiving your business credit card, you can start spending without delay.
2. Keep personal spending separate
This particularly applies for smaller companies and sole traders, who are more likely to mesh business and personal spending. Combining the two only makes monitoring spending more difficult, particularly when filing annual tax returns.
Your personal credit issues could have an impact on your business’ finances and vice versa, so it’s best to keep each of these separate - especially as it may harm you when you try to obtain finance in the future.
3. Earn Rewards
A number of business perks and rewards programmes are offered alongside commercial credit cards, many of which include travel insurance discounts, points and cash back. When finding the right card for your business, be sure to take these advantages into consideration.
4. Control employee spending
Lots of providers offer the option to manage several authorised users from your business credit card account. The benefit of this is that you are able to easily assign and update your employees individual credit limits and spending rules from the account settings, as well as being able to keep track of how much and where each user has spent money over a given time.
5. Increases administration Efficiency
Business credit cards give you the option to speed up your day to day accounting administration and operations. By issuing company credit cards to employees who need them, you will be able to manage them under one central business credit card account, reducing the need for petty cash and employee expense claims.
6. Helps Build your business credit profile
By obtaining a business credit card and ensuring you meet all your repayments on time with no delay, you will be able to build your business’ credit profile which in turn will help you when applying for finance in the future.
After setting up your business credit card, ensure that you use the credit limit and are timely paying back the balance each month. A healthy score and credit history makes applying for credit cards, overdraft facilities and business loans far easier, and you can benefit from reduced interest rates and favourable lending terms moving forward.
7. Useful during business emergencies
Businesses are hit with unexpected costs and emergencies on a daily basis. SMEs in particular tend to have limited cash flow, which makes dealing with these unanticipated issues tricky. With a business credit card, your business can benefit from immediate access to emergency funds.
What business credit card should I get?
There are a range of factors that will determine which credit card is best for your business. You should take into account the different features each provider offers, as well as interest rates, fees and options for adverse credit. Think about your business spend, and before applying, ensure you take the time to read credit card reviews online to get a better sense of what your business can expect.
What are the best business credit cards in the UK?
With so many providers now on the market, it can be time consuming comparing business credit card providers. We know how busy life is for business owners, which is why we’ve narrowed down the 10 best business credit cards in the UK:
|Provider||Representative APR||Interest free days|
|Capital on Tap||22.9%||56|
|Bank of Scotland||22.4%||45|
|Royal Bank of Scotland||24.3%||56|
Frequently Asked Questions
If you want to learn more about how Capital on Tap works, then make sure to checkout our FAQs below for more information.
What is a business credit card?
A business credit card is like a personal credit card, but for your business. It helps keep personal spending separate from business spending, which is useful for startups or young businesses. It can also be used to spread the cost of payments and keep track of business expenses such as training staff and purchasing business equipment.
How does Capital on Tap work?
Capital on Tap offers funding up to £50,000 to businesses across the UK with its business mastercard. It can be used to spend money on the go and is also regulated by the Financial Conduct Authority. It comes with no ATM or foreign transaction fees as well as a 56 day interest free period.
How can I get Capital on Tap?
You can get a Capital on Tap business mastercard by applying online at capitalontap.com. You will have to provide some basic information about the business as well as your personal details. Next, you will be met with the funding options available to your business and will have to make a decision on what is right for you.
Once you’ve made your decision you will be able to sign up for a Capital on Tap account, and your card will reach you within 4 business days.
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