How Small Businesses Can Tap Into The Benefits Of The Capital On Tap Business Card

For a small business owner, a business credit card can make getting to your goals easier in many ways. The Capital on Tap Business Credit Card is worth a closer look for its unlimited 1.5 percent cash back rewards and high potential credit limits — up to $50,000.

However, depending on your business and credit score, you might find a stronger business card elsewhere. Here’s what you can expect with the Capital on Tap Business Credit Card.

How does Capital on Tap work?

The Capital on Tap Business Credit Card could be a fit for small-business owners who need a lot of purchasing power and want to streamline earning rewards. However, you’ll want to watch for an extremely high APR of up to 43.49 percent.

Here’s what to expect when you apply for this small business credit card.

1. Complete an online application

Applying for a Capital on Tap credit card takes just minutes online and requires only a soft credit inquiry, which means you won’t see a drop in your credit score. The issuer advertises that they finalize decisions within 24 hours after you submit your application.

2. Access your account online

After you qualify for a Capital on Tap credit card, you receive a link to set up your online portal. This portal gives you the ability to manage your business credit card account — including employee spending, rewards and payments — while you wait for your physical card.

3. Use and manage your account responsibly

Your physical Capital on Tap Business card should arrive within four days after approval, at which point you can activate and start using it for purchases. Note your statement due dates, and make at least the minimum payment each cycle to keep your account open and in good standing. Any balances you carry over are subject to a variable APR of 17.49 percent to 43.49 percent — which is alarmingly high for a business card.

Of course, the best way to manage your credit card accounts — both business and personal — is to pay off your statement balance in full each month. If you miss a payment, penalties include a $29 late fee, with consequences for regular late payments, including damage to your credit score or even the issuer closing your account.

4. Earn cash back

Earn 1.5 percent cash back on all eligible purchases with no cap on how much you can earn. You can redeem your rewards for a credit on your balance, and unlimited employee cards can help you earn even more.

Is my business eligible for a Capital on Tap card?

Your business must meet four main qualifications to open a Capital on Tap card:

1. Your business has been active for at least six months.
2. Monthly revenue figures for your business equal at least $2,500.
3. The bulk of your business revenue comes from selling goods or services.
4. Your business is not a sole proprietorship, charity, non-profit organization, trust, fund, club or other non-registered organization.

Your business also needs to have a good credit score before you apply for a new business credit card account. If your business doesn’t meet this requirement, you might still see approval with a personal credit score of 670 to 850.

You would also need to provide a personal guarantee in this case, which would make you personally liable for the business’ debts in case the business cannot make its payments.

Benefits of the Capital on Tap card

• 1.5 percent cash back on all eligible purchases, with no limit on earnings
• No annual fee and no foreign transaction fees
• Soft credit inquiry to apply

Drawbacks of the Capital on Tap card

• Other business cards offer higher rewards, especially in bonus spending categories like travel, office supplies and advertisement
• Variable APR ranges from 17.49 percent to 43.49 percent — a range significantly higher than the average credit card APR
• There is no welcome bonus offer with this card

The bottom line

The Capital on Tap Business Credit Card offers credit limits as high as $50,000 to eligible applicants, with unlimited rewards on your spending and no annual fee. But the APR you’re approved for could be as high as 43.49 percent. And it falls short on features and perks you’ll find with stronger cards.

Before signing up, compare the best business credit cards in the industry against your creditworthiness and long-term goals to find the best fit for your business.