If you’re looking for a business credit card with a cashback scheme and no annual fee, Capital on Tap could be worth considering. The card pays 1% cashback on all spending with additional cards available at no extra cost.
Representative Example:
Assuming a credit limit of £1,200 and an interest rate on purchases of 15.5% (variable), the representative APR is 15.5% (variable). Credit available subject to status.
Pros
- Earn 1% cashback (uncapped) on all spending
- Market-competitive APR
- No annual fee
- Unlimited employee cards and virtual cards at no extra cost
- Integrate with accounting software
- Purchase protection from Capital on Tap
- No late fees, foreign transaction fees (for use abroad), or ATM fees.
Cons
- Minimum turnover requirements
- May be offered a higher APR
- No branches
- To redeem points as Avios requires a Business Rewards upgrade at £99 per year.
Table of Contents
Key features
- Credit limits up to £250,000
- Earn 1% cashback on purchases
- No annual fee
- Low purchase rate (subject to status).
Charges
This card comes with no annual fee, and the purchase rate could be as low as 15.5% (variable). However, depending on your business credit score and individual circumstances, the rate you are offered may be higher.
While there’s no interest-free promotional period, you’ll have 42 days to clear the balance before starting to accrue interest.
The card does not charge late payment fees, or foreign exchange fees when using overseas.
For £99 a year, customers can choose to upgrade the card to Business Rewards. This entitles them to bonus reward points which can be converted into Avios (more on this below).
Cashback and rewards
The Capital on Tap business credit card offers 1% uncapped cashback on all purchases paid in the form of ‘reward points’, with each point being worth one penny.
These points can be converted into cashback and credited to your account, or redeemed for discounted gift cards.
Customers who have upgraded to the Business Rewards scheme can convert rewards points collected into Avios. There’s also a welcome bonus of 10,000 reward points, worth £100, that can be earned after spending £5,000 in the first 3 months.
The Business Rewards upgrade can be purchased at any time, and there’s no requirement to renew it if you change your mind.
Features
Capital on Tap offers credit limits of up to £250,000, but the amount you are offered will depend on your business finances and personal circumstances.
If you need to make a purchase that exceeds your credit limit, Capital on Tap allows you to ‘preload’ the credit card with additional cash – and earn 1% cashback on the entire purchase.
You can request additional cards for employees free of charge, and set spending limits for each through the Capital on Tap app.
Users also have the option to create unlimited ‘virtual’ cards, with tailored spending limits and expiry dates, to help manage costs.
The app automatically categorises spending, and can integrate with accounting software such as Sage, Xero and FreeAgent.
While Capital on Tap is an app-forward provider, customers can also access 24/7 phone support.
Protection
Capital on Tap business credit card customers can claim a refund through the provider if:
- An item they order does not arrive
- A purchase is faulty or damaged, and the supplier fails to replace or refund it
- A company goes out of business before delivering the goods or services you purchased
- An event is cancelled and you have already paid for accommodation or travel.
While Capital on Tap provides its own protection, it’s worth noting that business credit cards are not covered under Section 75 of the Consumer Credit Act.
Will I be eligible?
This credit card is designed for UK business owners, directors, and majority shareholders with at least a 25% stake in the company.
To be eligible, your business must be registered as a private company (Ltd) or limited liability partnership (LLP), and have an annual turnover of at least £24,000. Sole traders cannot apply for the card.You must also hold a business current account, and have no outstanding County Court Judgements (CCJs) against you or your business.
What more should I know?
As with any credit card, it’s important to use the Capital on Tap business credit card carefully. If you don’t pay your balance in full, the interest you’ll pay is likely to outweigh any cashback you’ve earned.
Although this card comes with a relatively low representative APR of 15.5% (variable), you may be offered a higher rate depending on you and your business’ credit history.
Is it the right card for me?
If you’re looking for a business credit card that offers cashback with no annual fee, Capital on Tap could be worth considering.
Since there aren’t any foreign transaction fees, it could equally prove useful if you or your employees regularly travel overseas for business.
The card may be well-suited for business owners who are comfortable handling their finances via an app, since there’s no physical branch to visit.
What are my alternatives?
If you expect to carry a balance on your business credit card, it could be worth looking for an option that comes with a 0% interest introductory period, in order to give yourself some breathing room.
On the other hand, if earning points and cashback is a top priority and you don’t mind paying an annual fee, other business credit cards may offer more generous reward schemes. For longer-term borrowing, a business loan may be better suited to your needs.
