Compare Capital on Tap's revolving business credit card with Funding Circle's fixed-term loans — costs, eligibility, worked examples, and which suits your UK business in 2026.
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Check EligibilityCapital on Tap is a specialist business credit card provider that has served over 200,000 UK businesses. The product combines a Visa business credit card with a revolving credit facility of up to £250,000.
When you apply, Capital on Tap runs a soft credit check and assesses your business profile. Decisions often come within minutes, and if approved, your card is dispatched immediately with a virtual card available for instant use. The entire process — from application to spending — can happen in under an hour.
The credit facility works like any revolving line. You spend on the card or transfer funds to your bank account, and interest accrues on the outstanding balance. The minimum monthly payment is typically 1-2% of the balance plus interest, but you can repay as much as you like at any time. Repaid credit becomes available again immediately — no reapplication required.
One of Capital on Tap’s strongest features is cashback. The card offers up to 1% back on all spending, which for a business putting £10,000 per month through the card represents £1,200 per year in cashback. This partially offsets the interest cost if you carry small balances, and delivers pure profit if you clear the balance in full each month.
Funding Circle offers a fundamentally different product. Rather than a revolving credit line, you apply for a specific amount — between £10,000 and £500,000 — and receive the full sum upfront. You then repay it in fixed monthly instalments over a term of six months to six years.
The application process is more involved than Capital on Tap’s instant card approval. Funding Circle typically requires two years of trading history, financial documentation, and a reasonable credit profile. Their underwriting team assesses your application over one to five business days before making a lending decision.
The payoff for this more rigorous process is a significantly lower cost of borrowing. Representative APRs start from approximately 6.9%, making Funding Circle one of the most competitive unsecured lenders for established UK SMEs. Your specific rate depends on your trading history, profitability, credit score, and the loan term.
If you use your Capital on Tap card to fund a £25,000 stock purchase and repay it over 12 months at a representative APR of 34.9%, your total interest cost would be approximately £4,900, making the total repayable around £29,900. Monthly payments would average roughly £2,492.
However, if you use the card strategically — spending £25,000 and clearing the balance within 30 days using revenue from selling that stock — you pay zero interest and earn approximately £250 in cashback. This is the optimal use case: Capital on Tap as a short-term float that generates cashback rather than interest charges.
At the other extreme, making only minimum payments on a £25,000 balance could stretch repayment over several years and cost well over £10,000 in interest. The revolving model rewards disciplined use and punishes complacency.
At a representative APR of 6.9% on a 3-year term, your fixed monthly payment would be approximately £769. Over 36 months, you would repay around £27,684, making the total cost of credit roughly £2,684.
On a shorter 12-month term, monthly payments rise to approximately £2,163 with a total cost of credit of around £956. Either way, the cost is predictable from day one — you know exactly what you will pay.
Capital on Tap wins when you can clear balances within 30-60 days. If you spend £25,000 and repay within a month, you pay no interest and earn £250 in cashback. Funding Circle charges interest from day one regardless of how quickly you could have repaid, and there is no cashback benefit.
For businesses with strong cash flow that use credit as a short-term float rather than long-term borrowing, Capital on Tap can genuinely be cheaper. The break-even point is roughly 60-90 days — if you can repay within that window, the card wins. Beyond that, Funding Circle’s lower APR takes over.
The headline rate gap is stark: Capital on Tap charges 29.8-39.6% APR against Funding Circle’s 6.9%+. On a pure cost-of-borrowing comparison, Funding Circle is roughly four to five times cheaper per pound borrowed per year.
But these products are not direct substitutes. Capital on Tap’s rate applies only to balances carried beyond the payment date. A business that clears its card monthly pays zero interest. Funding Circle’s rate applies to the full loan amount for the entire term. The APR comparison only matters if you intend to carry a balance — which is the wrong way to use a business credit card.
The right framework is not “which has the lower rate” but “which matches my borrowing pattern.” Planned, one-off investments of £10,000 or more belong on a Funding Circle term loan. Variable, ongoing operational costs belong on a Capital on Tap card.
Choose Capital on Tap. The credit card format is designed for ongoing operational spending — supplier payments, travel, subscriptions, advertising, and stock purchases. The cashback rewards regular use, and the revolving facility means your credit is always available. Funding Circle’s term loan is a one-time lump sum that does not suit the rhythm of daily business spending.
Choose Funding Circle. Buying equipment, fitting out premises, or funding a specific growth project suits a term loan structure. You borrow exactly what you need, lock in a low rate, and repay over a predictable schedule. Putting a £50,000 equipment purchase on a credit card at 35% APR would be financially reckless.
Choose Capital on Tap. With a minimum trading requirement of one year versus Funding Circle’s two years, Capital on Tap is accessible sooner. The credit limit may start lower than you would like, but it establishes a business credit facility that can grow over time.
Choose Funding Circle for amounts over £10,000 held for more than 90 days. The APR difference saves thousands on larger, longer-term borrowing. But also consider Capital on Tap for amounts you can clear within a month — the zero-interest-plus-cashback model is unbeatable for short-term needs.
Choose Capital on Tap. The card offers competitive foreign exchange rates with no UK transaction fees, making it useful for businesses that buy from overseas suppliers or travel regularly. Funding Circle’s term loan has no card or payment functionality — it simply deposits cash in your account.
Capital on Tap holds a 4.8 out of 5 Trustpilot score. Customers praise the speed of approval, the convenience of having a business credit card with a meaningful credit limit, and the cashback programme. Common positive themes include instant virtual card access, responsive customer support, and a clean mobile app. Criticisms centre on interest rates being higher than expected when balances are carried, occasional credit limit reductions without warning, and the facility not being suitable as a long-term borrowing tool.
Funding Circle scores 4.6 out of 5 on Trustpilot. Borrowers highlight competitive rates, the transparency of fixed repayments, and the professionalism of the application process. Positive reviews frequently mention the peace of mind of knowing exactly what is owed each month. Negative themes include slower processing than advertised, the two-year trading requirement excluding viable businesses, and occasional frustration with documentation requests during underwriting.
Capital on Tap and Funding Circle are complementary products, not competitors. The credit card excels at flexible, everyday business spending where balances are cleared quickly. The term loan excels at planned, larger investments where a lower rate over a defined period saves significant money.
If you can only choose one, let the purpose guide you. For ongoing operational flexibility, Capital on Tap. For a specific investment with a clear return, Funding Circle. For businesses with both needs, holding both products is a common and sensible approach — the card handles the day-to-day while the term loan funds the growth.
| Feature | Capital on Tap | Funding Circle |
|---|---|---|
| Amount range | Up to £250,000 revolving | £10,000 – £500,000 term loan |
| Interest rates | Rep. APR 29.8-39.6% | Rep. APR from ~6.9% |
| Approval speed | Minutes to hours | 1-5 business days |
| Min trading history | 1 year | 2 years |
| Min turnover | ~£24,000 annual | ~£50,000 annual |
| Credit requirements | Standard credit check; flexible approach | Good credit profile required |
| Repayment style | Revolving — repay and redraw; minimum monthly payments | Fixed monthly term loan instalments |
| Trustpilot score | 4.8 / 5 (Excellent) | 4.6 / 5 (Excellent) |
These products serve different needs — the credit card for flexibility, the term loan for planned investment. Choose Capital on Tap if you need flexible, revolving access to funds for everyday business costs and can manage the facility responsibly without carrying large balances long-term. The cashback adds real value for high-spending businesses. Choose Funding Circle if you know exactly how much you need, have been trading at least 2 years, and want to borrow at a lower rate over a defined term. At scale, Funding Circle saves thousands in interest.
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