What are the best alternatives to Capital on Tap?

Why consider alternatives to Capital on Tap?

Capital on Tap has carved out a popular niche as a business credit card and revolving credit facility for UK SMEs. Its appeal is simple: a combined business credit card and credit line, fast decisions, rewards on spending, and up to £250,000 of revolving credit.

But it is one product, not a complete financial relationship. It does not offer a full business bank account, international transfers, multi-currency accounts, or the larger loan amounts available from dedicated lenders. For some businesses, those gaps matter.

This guide looks at six alternatives, each addressing a specific limitation of Capital on Tap.

Top Capital on Tap alternatives

1. Funding Circle — Best for term loans at lower rates

Funding Circle is the right alternative when you need a one-off capital injection rather than ongoing revolving credit, and when you want the lowest possible rate. Its fixed-rate term loans from £10,000 to £500,000 start from 6.9% APR — materially cheaper than Capital on Tap’s 14.9%+ for equivalent borrowers on large, longer-term borrowing.

Rates and amounts: 6.9%–99% APR; £10,000–£500,000; 6 months–6 years.

Eligibility: 2 years trading, £50,000+ annual turnover, no unsatisfied CCJs.

Pros: Lowest rates among mainstream alternative lenders; fixed monthly repayments; no early repayment charge; good for capital expenditure.

Cons: No revolving structure; slower decisions (1–3 days); stricter eligibility than Capital on Tap; no card product.

Best for: Businesses that need a large, fixed loan for equipment, expansion, or acquisition — where Capital on Tap’s revolving credit structure and higher rates are not appropriate.

2. Tide — Best for banking plus credit in one place

Tide is a business current account provider with an integrated credit line (Tide Credit Line, powered by iwoca) and business credit card. For small businesses that want simple, app-first banking with credit attached, Tide is the closest like-for-like comparison to Capital on Tap with the addition of a real transactional bank account.

Rates and amounts: Credit line up to £150,000; business account free or from £9.99/month (Pro plan).

Eligibility: UK registered business; credit line subject to separate underwriting.

Pros: Combined banking and credit; extensive app integrations (Xero, QuickBooks, FreeAgent); no monthly fee on basic plan; Mastercard included.

Cons: Credit line maximum lower than Capital on Tap; customer service is app/email only (no phone); some complaints about account freezes.

Best for: Sole traders and small limited companies wanting all-in-one banking and credit without maintaining separate products.

3. Starling Bank — Best for a full business bank account

Starling is a fully licensed UK bank offering a free business current account with a Mastercard debit card, built-in accounting integrations, and business overdraft facilities. Unlike Capital on Tap, Starling is a real bank — FSCS-protected deposits, sort code and account number, direct debit capability, and a full banking relationship.

Rates and amounts: Business overdraft available (amount by application); no monthly fee for basic account.

Eligibility: UK registered business; sole traders and limited companies accepted.

Pros: FSCS protection on deposits; free business account; strong app with accounting integrations; Spaces feature for ring-fencing funds; no foreign transaction fees.

Cons: No revolving credit card product comparable to Capital on Tap; overdraft availability not guaranteed; lending products less developed than dedicated lenders.

Best for: Businesses that want a proper banking relationship — FSCS-protected deposits, direct debits, standing orders — alongside their business credit facility, rather than using Capital on Tap without a separate bank account.

4. Revolut Business — Best for international and multi-currency

Revolut Business offers accounts in 25+ currencies, inter-bank exchange rates, global transfers, and a business card. For any business with international customers or suppliers, the FX savings alone can outweigh any credit benefit from Capital on Tap.

Rates and amounts: Plans from free to £79/month; no specific credit facility (credit products limited in UK as of 2024).

Eligibility: UK registered business; online onboarding.

Pros: Multi-currency accounts; low FX rates (interbank + small spread); expense management tools; international transfers; crypto and stock features on higher plans.

Cons: No FSCS protection (e-money institution, not a bank); limited lending product in the UK; customer support has mixed reviews; not suitable as sole banking provider for complex businesses.

Best for: E-commerce businesses, importers, exporters, or any business that regularly sends or receives money in foreign currencies where Capital on Tap’s GBP-only focus is a limitation.

5. iwoca — Best for larger unsecured loans

Where Capital on Tap caps at £250,000, iwoca’s Flexi-Loan goes to £500,000. If you’ve maxed your Capital on Tap limit or need a larger facility, iwoca is the natural next step. The Flexi-Loan also works as a revolving facility — draw, repay, redraw — with interest only charged on what you use.

Rates and amounts: From approximately 2% per month; £1,000–£500,000; 1 day–24 months.

Eligibility: 12 months trading, £30,000+ annual turnover.

Pros: Higher maximum than Capital on Tap; revolving structure similar to Capital on Tap; fast decisions; no early repayment charge.

Cons: Rates can be higher than Capital on Tap for short-term credit; shorter maximum term (24 months); no card product or rewards.

Best for: Businesses that have outgrown Capital on Tap’s £250,000 limit and need up to £500,000 of revolving unsecured credit from a single provider.

6. ANNA Money — Best for invoicing-led businesses

ANNA Money (Absolutely No Nonsense Admin) is a business account designed for freelancers, sole traders, and small businesses with a built-in invoicing tool, tax calculation, and expense management. A credit card is available. For businesses where invoicing is central to cash flow, ANNA’s integrated approach reduces admin overhead considerably.

Rates and amounts: Plans from free to £49.90/month; business credit card available; credit limits by application.

Eligibility: UK registered business, sole traders and limited companies.

Pros: Integrated invoicing and tax tools; automated categorisation; credit card available; simple onboarding; built-in VAT calculation.

Cons: Smaller and less established than Capital on Tap or Tide; credit limit and product depth less than specialist lenders; not suitable for complex banking needs.

Best for: Freelancers, consultants, and small service businesses where invoicing automation is more valuable than rewards, and where a full banking and credit toolkit in one app is appealing.

Comparison table

How to choose the right alternative

Choose Funding Circle if you need a one-off term loan of £50,000+ at the lowest possible rate and don’t need ongoing revolving access.

Choose Tide if you want a combined bank account and credit line in a single app, particularly if you already use Xero or QuickBooks.

Choose Starling if you want a proper FSCS-protected bank account as your main business current account, with or without additional credit.

Choose Revolut Business if your business transacts internationally and you’re losing money on FX fees with a GBP-only provider.

Choose iwoca if you need more than Capital on Tap’s £250,000 limit or want a higher revolving credit ceiling without switching to a term loan.

Choose ANNA Money if you’re a freelancer or small service business and the combination of invoicing, tax tools, and banking in one place will save you meaningful admin time.

Many businesses run two or three of these products in parallel — a banking account (Starling or Tide), a credit facility (iwoca or Capital on Tap), and a separate card product for expenses and rewards. That combination is often more cost-effective than trying to find one product that does everything.