Is your business suitable for a business credit card?

Feb 12, 2020

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This story has been paid for by Capital on Tap, but the opinions are those of the author and TPG. This is one way TPG continues to provide our readers with free news and advice about travel.

Apply for the Capital on Tap Business Rewards Card here.

If you run a business, you may have at some point considered getting a business credit card.  There are a range of different business credit cards in the U.K. with benefits like cashflow solutions, travel perks and loyalty points, which you can use to reduce your business expenses.

This month, we are examining the Capital on Tap Business Rewards Card, which for a limited time has an elevated offer exclusively for TPG U.K. readers. Until 29 February, as a new cardholder, you will receive 15,000 Capital on Tap points after spending £5,000 in the first three months. To take advantage of this special offer, all you need to do is enter the promo code thepointsguy during the application process. You can apply for the card here.

You can read our full review of the card here, but in summary, the card:

  • Earns Capital on Tap points for every purchase;
  • Comes with a special increased welcome bonus of 15,000 Capital on Tap points after spending £5,000 by entering the promo code thepointsguy during the application process until 29 February 2020;
  • Has the option of redeeming those Capital on Tap points for Avios and/or cashback;
  • Has an annual fee of £99;
  • Charges no foreign exchange or ATM fees.

Related: Why Capital on Tap credit cards are great for businesses that travel a lot

Photo by Marvin Meyer on Unsplash
(Photo by Marvin Meyer/Unsplash)

So if you’ve been considering a card like this, what does it take to be approved? Your business must have a turnover of at least £2,000 per month, it must be based in the U.K. and it must have no unsatisfied County Court Judgment against it.

If you meet the eligibility requirements, in terms of the suitability of the card for your business, consider the value you may obtain from its main benefits. If you could use short-term cashflow benefits, purchases will enjoy up to 56 days interest-free terms each statement cycle. The Capital on Tap points earned can be redeemed for Avios and/or cashback, so if your business wants to reduce its everyday business expenses by 1% every month, it can do so by putting purchases on the card. Alternatively, if your business involves regular travel, you may be able to obtain even more savings by converting the Capital on Tap points to Avios, which can be a lifesaver for expensive, last-minute flights.

Related: Capital on Tap Rewards: Should you choose cashback or Avios?

But perhaps the best feature of this card is the lack of foreign transaction fees. If your business either makes regular purchases in foreign currencies and/or makes business expenses abroad (such as staff travelling for meeting clients, industry events or visiting suppliers), you can avoid the fees other U.K. business credit cards charge. This can save your business up to 3% on every transaction.

Earning rewards and avoiding foreign transaction fees is a winning combination.

Your business may also be suitable for a card like this if you want to allow multiple employees to use the card for business expenses but ensure that all of the points and purchases are recorded centrally in the one location. You can choose to issue up to 20 supplementary cards at no additional cost, and those cards will also enjoy benefits like earning Capital on Tap points and no foreign transaction fees. All purchases will appear in the primary cardholder’s account, as will all of the points.

Representative APR 39.9%, minimum credit limit £1,000, maximum credit limit £50,000. Purchase rate 2.84% per month.

You can apply for this card here.

Featured image by FangXiaNuo/Getty Images

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.