Capital on Tap vs Funding Circle: Which UK Business Loan Provider in 2026?
Capital on Tap and Funding Circle both score 4.3 of 5 in our 2026 UK review. Capital on Tap runs a business credit card with revolving credit line at From 15.5% APR variable on cash; 0% on card spend if cleared in full with decisions in 2 minutes to same day; Funding Circle runs a term loan at 6.9% to 26.9% APR with decisions in 1 to 3 business days. The right answer depends on what you need: ticket band, time pressure, sector, and whether your trading history clears each lender's eligibility floor. Read both columns of the side-by-side, then read the "when X wins" sections below for the buyer-fit logic. If you want us to do the work, our two-minute quote form matches you against a UK lender panel without affecting your credit file.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 8 May 2026
Side-by-side
| Capital on Tap | Funding Circle | |
|---|---|---|
| Product type | Business credit card with revolving credit line | Term loan |
| Founded | 2012 | 2010 |
| Ticket range | Up to £250k credit limit | £10k to £500k |
| Typical rate | From 15.5% APR variable on cash; 0% on card spend if cleared in full | 6.9% to 26.9% APR |
| Decision time | 2 minutes to same day | 1 to 3 business days |
| Soft search at quote | Yes | Yes |
| Limited companies only | No | No |
| FCA regulated | Yes | Yes |
| Companies House | 09867706 | 07123069 |
| Best for | Cash-flow cards on monthly cycle; Established Ltd companies and sole traders with clean credit; Borrowers wanting same-day approval | Established Ltd companies; Working capital £25k-£250k; Borrowers wanting decision speed |
| Overall rating | 4.3 / 5 | 4.3 / 5 |
| Last reviewed | 2026-05-08 | 2026-04-26 |
When Capital on Tap wins
- Soft-search application with no credit-file footprint at quote.
- Decisions in around 2 minutes for clean cases.
- No interest if statement balance is cleared in full each month.
- 1% unlimited cashback or Avios collection on card spend.
Best for
Cash-flow cards on monthly cycle, Established Ltd companies and sole traders with clean credit, Borrowers wanting same-day approval.
Watch outs
- Cash-advance APR materially higher than card-spend APR; using it as cash erodes the maths.
- Personal guarantee required from a director.
- Credit limit can be reset down without warning if account behaviour changes.
When Funding Circle wins
- Soft-search application; no credit-file footprint at quote stage.
- Eligibility criteria published up front, not hidden behind a quote.
- Decisions in 1-3 days; fast even by UK SME standards.
- Established brand, FCA regulated, public market-listed.
Best for
Established Ltd companies, Working capital £25k-£250k, Borrowers wanting decision speed.
Watch outs
- Headline rate (6.9%) only available to top-tier applicants; typical offer is higher.
- Personal guarantee almost always required for limited-company borrowers.
- Less competitive on the £100k+ ticket band than specialist lenders.
FAQ
Capital on Tap or Funding Circle: which is the better UK business loan in 2026?
Capital on Tap scores higher overall in our 2026 review at 4.3 of 5 versus 4.3 for Funding Circle. That said, the right answer depends on what you trade and what you need. Capital on Tap is the stronger pick for cash-flow cards on monthly cycle, while Funding Circle is the stronger pick for established ltd companies. If your business sits inside one of those use cases, ignore the headline rating and pick for fit.
What rates and ticket bands do Capital on Tap and Funding Circle offer?
Capital on Tap runs a business credit card with revolving credit line with tickets of Up to £250k credit limit at From 15.5% APR variable on cash; 0% on card spend if cleared in full. Funding Circle runs a term loan with tickets of £10k to £500k at 6.9% to 26.9% APR. Decision time on Capital on Tap is 2 minutes to same day; on Funding Circle it is 1 to 3 business days. Headline rates rarely match the offered rate, so verify on the lender site before committing, and assume bespoke pricing above £100k where the data allows it.
Eligibility: Capital on Tap vs Funding Circle, who qualifies?
Capital on Tap is soft-search at quote stage (no credit-file footprint) and accepts sole traders and partnerships as well as Ltd companies. Funding Circle is soft-search at quote and accepts sole traders and partnerships as well as Ltd companies. Capital on Tap is FCA regulated; Funding Circle is FCA regulated.
Which is the wrong answer for what?
Capital on Tap is the wrong answer for long-tenor capex finance. Funding Circle is the wrong answer for sub-2-year trading. If either of those describes your business, look at the side-by-side table for the alternative, or get a quote from our UK lender panel and we will surface the right shortlist.
Can BestBusinessLoans help me choose between Capital on Tap and Funding Circle?
Yes. Our reviews are editorial; we run a UK lender panel via our /get-quotes/ form that includes both. Tell us monthly turnover, sector and what you need the money for. We match you against the lenders most likely to approve and beat your current cost, then route the application without affecting your credit file at quote stage.
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Get quotes →Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-08. Editorial by Best Business Loans Ltd (16833937).