The free card showdown
These two cards sit in the same sweet spot: no annual fee, 1% rewards, high credit limits. They're the obvious choice for businesses that don't want to pay £195+ per year for an Amex.
But they're not identical. The differences — card network, FX fees, approval process, and accounting integrations — matter depending on how your business operates.
Side-by-side comparison
| Feature | Capital on Tap | Funding Circle | |---------|---------------|----------------| | Annual fee | £0 | £0 | | Rewards | 1% in points | 1% cashback | | Credit limit | Up to £250,000 | Up to £250,000 | | Card network | Visa | Visa | | FX fees | 1.99% | 0% | | Approval speed | Minutes | 1-2 days | | Welcome bonus | None | None | | Xero integration | Direct feed | Direct feed | | QuickBooks integration | Direct feed | No | | FreeAgent integration | No | Direct feed | | Sage integration | No | Direct feed |
Rewards: points vs cashback
Capital on Tap earns 1% in points. Funding Circle earns 1% in cashback.
On paper, 1% is 1%. In practice:
Capital on Tap points can be redeemed against your statement, donated to charity, or used in their rewards marketplace. The redemption rate is effectively 1:1 — 1,000 points = £10. No complexity, no devaluation risk.
Funding Circle cashback is paid as actual cash. It hits your account automatically. There's nothing to redeem, no points to manage, no marketplace to navigate.
If you prefer set-and-forget simplicity, Funding Circle's cashback is marginally more convenient. If you don't mind clicking "redeem" occasionally, Capital on Tap's points are functionally equivalent.
FX fees: the biggest difference
This is where the two cards genuinely diverge.
Funding Circle: 0% FX fees. No foreign transaction fee on any purchase in any currency. This is rare for a free business card and extremely valuable if you:
- Buy from international suppliers
- Pay for software priced in USD or EUR
- Travel abroad for business
- Import stock from overseas
Capital on Tap: 1.99% FX fees. Every non-GBP transaction costs an extra 1.99%.
On £1,000/month in international spend:
- Capital on Tap: £19.90/month in FX fees (£239/year)
- Funding Circle: £0
If you have significant international spend, this alone makes the decision. Funding Circle wins.
If all your spending is in GBP, the FX fee is irrelevant and you can choose on other factors.
Approval and onboarding
Capital on Tap is the fastest business card to get in the UK. Apply online, get a decision in minutes, receive your card within days. They're notably more willing to approve newer businesses — see our startup card guide.
Funding Circle takes slightly longer — typically 1-2 business days for a decision. Their underwriting is more traditional, generally requiring some trading history. They may request bank statements or accounts.
For speed and accessibility, Capital on Tap is the clear winner.
Accounting software
Both cards offer direct bank feeds, but to different platforms:
- Capital on Tap: Xero and QuickBooks — the two most popular UK small business accounting tools
- Funding Circle: Xero, FreeAgent, and Sage — broader coverage, but no QuickBooks
If you use QuickBooks: Capital on Tap. If you use FreeAgent or Sage: Funding Circle. If you use Xero: both work.
Credit limits and underwriting
Both advertise limits up to £250,000, but the limit you're offered depends on your business:
Capital on Tap tends to start conservatively (£1,000-£10,000) and increase as you build a repayment history. They're faster to approve but may offer lower initial limits.
Funding Circle may offer higher initial limits if you have established trading history and strong financials. Their underwriting takes longer because they assess more thoroughly upfront.
For established businesses with good accounts, Funding Circle may offer a higher day-one limit. For newer businesses or those wanting speed, Capital on Tap's progressive limit increases work well.
Which card for which business?
| Business type | Better choice | Why | |--------------|--------------|-----| | New/startup business | Capital on Tap | Faster approval, accepts newer businesses | | International suppliers | Funding Circle | Zero FX fees | | QuickBooks user | Capital on Tap | Direct feed integration | | FreeAgent/Sage user | Funding Circle | Direct feed integration | | E-commerce importer | Funding Circle | Zero FX fees on stock purchases | | Domestic-only business | Either | Near-identical on GBP spend | | High volume (£10k+/month) | Either | Both handle high spend well |
Can you get both?
Yes, and it's a reasonable strategy:
- Capital on Tap for domestic GBP spend — fast, high limits, QuickBooks integration
- Funding Circle for international spend — zero FX fees
Two free cards, 1% back on everything, no FX fees on international purchases. The only cost is managing two statements (which accounting software handles automatically).
The verdict
For a single, no-fee business card:
- Capital on Tap wins for most businesses — faster approval, better for new businesses, strong integrations with Xero and QuickBooks.
- Funding Circle wins if you have international spend — zero FX fees is a meaningful saving that no other free card matches.
Both are significantly better than holding no business card at all. The 1% rewards on every purchase add up to hundreds or thousands per year — money that's yours to keep.
See how both compare to premium options on our card comparison page.