Capital on Tap business funding review

Capital on Tap offers loans of up to £50,000 to small businesses, as well as bounce back loans. You can spend your funds on your Visa card, send money to your bank account or withdraw cash from a cashpoint.

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Capital on Tap

Since its launch in 2012, Capital on Tap has funded more than 100,000 small businesses in the UK. From florists and mechanics to consultants and graphic designers, Capital on Tap has provided over £1.5 billion to help businesses grow.

A direct lender (not a broker) which has headquarters in London, Capital on Tap was the first business lender in the UK to offer an instant decision in principle on funding applications. It uses “soft searching” so you can find out if you’re eligible without it impacting your credit file. You can also choose to upgrade your Capital on Tap account to Capital Club, which lets you earn cashback or Avios on money spent in exchange for a yearly fee.

Whether you’ve recently started a business or need a cash boost to get it to the next level, Capital on Tap could help with a credit facility of up to £50,000.

Capital on Tap Business Rewards Credit Card

Business funding for the real world

  • Up to 1% cashback or 1 Avios per pound spent
  • Up to 10,000 bonus points when you spend £5,000 in 3 months
  • Up to 20 free supplementary cards
  • Up to 56 interest-free days on purchases each billing cycle

Representative example: When you spend £1,200 at a purchase rate of 39.41% (variable) p.a., your representative rate is 39.9% APR (variable).

Capital on Tap coronavirus business loans

Capital on Tap is now an accredited lender under the government’s Coronavirus Business Interruption Loan Scheme (CBILS). This means Capital on Tap is able to provide funding to businesses that have been substantially affected by the ongoing pandemic.

Capital on Tap loan options

Customers can choose to upgrade their standard Capital on Tap account to Premium for a yearly fee. The Premium account gives unlimited cashback as a percentage of money spent, so it is worth looking carefully at whether this option would suit you and your business.

Key features of Capital on Tap business loan at a glance

  • Quick decision. Apply online in 2 minutes and receive an instant initial decision. Capital on Tap uses soft searching at this stage, which will leave no footprint on your credit file.
  • Borrow up to £50,000. The credit limit on your account will depend on the size of your business, its performance and creditworthiness.
  • Credit facility. You can spend your funds on your Visa card, transfer money to a bank account or withdraw cash from an ATM.
  • Top-up at any time. As a flexible line of credit, you can borrow more whenever you need to, subject to an agreed limit.
  • Repayment flexibility. Repay an amount that suits you each month, subject to an agreed minimum. Paying less will mean borrowing for longer, however, which will cost more.
  • No penalty for repaying early. Capital on Tap will not charge you for paying off your balance at any time, and doing so will save you money in interest.
  • No commission on international purchases. Capital on Tap uses Visa’s exchange rate when you use your card abroad and there are no additional fees.
  • Co-branded Visa. Increase the visibility of your brand and logo by having it added to your card.

Interest rates are fixed for the duration of your repayment period. However, the rate you’re offered will depend on factors like the amount you apply for, the term of the loan, the performance of your business and its credit rating. This may differ from the advertised “representative APR”.

Am I eligible for Capital on Tap business funding?

You should only apply for Capital on Tap business funding if you’re certain you can meet the repayment terms. You must also:

  • Be registered in the UK, with all business owners based in the UK
  • Have at least 12 months of trading history
  • A turnover of at least £24,000 per year
  • Have no court judgements against the business or you personally

How can I apply?

  1. Go to the “Sign Up” page on the Capital on Tap homepage. Fill out the one-page application form with some basic business and personal information. If you are a limited company you will need your registered number to hand.
  2. Capital on Tap will run a soft credit search, which will leave no footprint on your credit file. It will give you an initial decision immediately.
  3. Once you’ve signed up, the Capital on Tap business compliance team will check that your company is meeting all the necessary regulatory requirements.
  4. In some circumstances, Capital on Tap will require some additional information such as business trading activity and the names and addresses of additional business owners.
  5. If all conditions are met, you will be sent your card within 4 working days.

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Alternative sources of funding

There are several types of business loan out there. The right one for your business will depend on how much you need and how long you want to borrow for. You should consider your options carefully before taking out a business loan.

  • Government startup loans. If you have a new business, you could borrow up to £25,000 at a low interest rate. You may also be eligible for a government grant.
  • Bank loans. Banks and building societies can lend you up to £250,000 over a term of 1 to 15 years. These loans are usually unsecured.
  • Short-term loans. These are offered over a few weeks or months and typically come with a higher interest rate than other types of borrowing. You could get a loan of up to £200,000.
  • Peer-to-peer loans. This is when your business borrows money from investors instead of from a financial institution. You could get a loan of up to £1 million.
  • Cash-advance loans. This option allows you to borrow money against your company’s future debit or credit card sales. You will pay a set fee rather than an interest rate.

Frequently asked questions

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