Since the financial crisis of 2008, many mainstream banks
have tightened the reins on their lending to small and medium-sized
enterprises. As such, it can sometimes be difficult for companies that are just
starting out or trying to expand to get the funding they need. Thankfully, a
series of challenger brands have entered the market to fill this void. One such
offering is Capital on Tap, offering business credit at the touch of a button.
In our Capital on Tap review, we look at everything you need to know about the
brand, how they work, and the service they provide.
Quick Look – Pros & Cons
Let’s start with some of the positives and negatives of
Capital on Tap’s service. These quick-fire lists give you an overview of
whether the service is the right choice for your business:
The Capital on Tap website is simple to use,
making the application process straightforward and quick. You can get a quote
It’s free for you to get a quote, and doing so
won’t affect your credit score.
You can apply for multiple business credit cards,
making it ideal for companies with multiple directors.
There are no regular fees for using your
Some of the features are only available to ‘premium’
They don’t have a mobile app for their service,
unlike many other providers.
The service is not a complete business banking
What is Capital on Tap?
Capital on Tap is a digital lender aimed at small UK
businesses. The company was founded in 2012 and has since gone on to help over
50,000 businesses, funding more than £500 million. Capital on Tap don’t offer
banking services – they provide credit and credit cards (Mastercard), powered
by an online account. With your credit card, you make payments and withdraw
cash from ATMs, and with the account, you can transfer funds to high-street
bank accounts. When it’s time for repayments, Capital on Tap will collect the
money via direct debit.
The service is simple and straightforward, although far from
comprehensive in terms of business banking, yet it can be extremely valuable
for small enterprises that are just starting out or beginning to expand.
How does Capital on Tap work?
One of the best things about Capital on Tap is that it’s so
simple to get started with. You can apply for your business funding within a
few short minutes and get a response almost instantly. Below, we’ve outlined
how the application process works:
Visit the Capital on Tap website and fill out
the application form. It takes around two minutes to complete, and it won’t
impact your credit rating. You’ll need to provide some information about your
business, how long it’s been trading, and how much it makes.
Wait for them to review your details. This
usually only takes a matter of minutes, and you’ll get a response notifying you
whether you’re eligible.
Sign up for an account. If everything is
acceptable with your application, you can create a login and account for your
Access your money. Your online funding is
available immediately, and you’ll get your Business Mastercard within four
Once you have access to your account and card, you can start
using it just like a regular credit card. Make payments, transfer money, and
withdraw cash, it’s all as you’d expect.
There are some Capital on Tap eligibility requirements that
you’ll have to meet in order to start an account. First, your business will
have to have a turnover of at least £2000 per month. You also can’t have any
unsatisfied CCJs against your or your business in the last 12 months. Finally,
you must be based in the UK.
What features does Capital on Tap have?
Despite being a simple premise, Capital on Tap actually
offer some pretty useful features. Not only does it open up your options for
securing funding for your business, but there are some additional bonuses the
fees. You won’t find any foreign transaction fees, charges for withdrawing
from ATMs, or monthly fees for using your account.
interest. When you’re using your Capital on Tap account, you can get up to
56 days of interest free on purchases. This applies providing you pay off your
balance in full each month. You can improve your rates over time too, meaning
that those who don’t pay off their balance each month will get an interest rate
of 0.79% to 4.9% per month.
club. You can pay for inclusion in the Capital on Tap rewards club. This
will give you an uncapped 1% cashback on all card spends. You can redeem points
with either Avios or cashback. The service costs an upfront annual fee of £199.
application. All of these features can be accessed by filling out an
application form that takes around two minutes to complete.
What are the Capital on Tap fees?
On the Capital on Tap website, they state that the cost of
your funding depends on your interest rate and how long you want to borrow the
funds for. To get an idea of your initial rate, you’ll have to complete an
application online. However, it usually ranges from around 0.79% to 4.9% per
month. Of course, if you pay off your balance each month, you could earn a
56-day interest-free period.
There are no fees for applying, and none for requesting a
card, making ATM withdrawals or making non-sterling transactions. There’s no
fixed monthly fee for having an account either. You will be charged a late fee
if you make a payment outside of the agreed time. However, these fees aren’t
advertised on their website.
Who is Capital on Tap for?
This is a service that’s very much aimed at small businesses
in need of credit. Provided your monthly turnover is over £2000, you’ve a good
chance of getting accepted for a Capital on Tap credit card. This makes it
ideal for new companies that are getting started, or more established ones that
are trying to grow.
If cash flow is becoming an issue for you, the flexibility
of a relatively low-interest (or even interest-free) card is appealing. You may
have upcoming purchases or transactions that you need to make, and want the
added cushion and protection that a business credit card offers. Of course, you
have to ensure that you have the funds to pay back any money you borrow. The
monthly interest can soon mount up if you’re not making your repayments.
What are the drawbacks of using Capital on Tap?
Few services are entirely perfect, and Capital on Tap is no
exception. There are a few downsides that are worth covering, allowing you to
make an informed decision about the company. Here are some of the negatives of
Capital on Tap:
no mobile app. Many challenger brands these days are built around an
excellent mobile experience. It’s such a convenient way of managing your money
on the go and keeping track of spending. Sadly, Capital on Tap doesn’t
currently have an app, so everything has to be done via their website.
features are free. If you want to earn cash back on your purchases, you’ll
have to sign up for a premium account, which costs £199 per year upfront.
a complete banking service. You don’t get a current account or any of the
other banking services you’ll need. Capital on Tap is a lender, so you’ll have
to find another company to do your business banking with.
How safe is Capital on Tap?
The firm that own Capital on Tap, New Wave Capital Limited,
is authorised by the Financial Conduct Authority. They hold a business lending
licence, but they cannot hold money. This makes it safe in terms of borrowing
money from them.
The Capital on Tap website is secure and encrypted, and your
passwords and sensitive data are not seen by their customer services. The
Mastercard that you’re provided with is secured by a PIN.
Capital on Tap Verdict
Ultimately, Capital on Tap provides a valuable if slightly
limited service. Small business owners will delight in the chance to apply for
finance and a credit card, yet won’t have all of their banking needs met.
However, that’s not the point of the company. They’re strictly lenders, and
their no-nonsense approach to applications and fees is refreshing to see.
Overall, their rates are reasonable, particularly if you
know you can pay off your balance in full each month. They do charge for
premium features, but many customers will manage without these.