Capital on Tap Adds Preloading Feature to Business Credit Card

Customers using Capital on Tap’s business credit card and spend management platform can now top up their credit balance with their own funds.

By doing so with the company’s new Preloading feature, these small and medium-sized businesses (SMBs) can extend their spending capabilities and earn 1% cash-back rewards on all spending, Capital on Tap said in a Thursday (Jan. 11) press release.

“This new functionality gives our customers unparalleled flexibility and control over their spending and rewards,” David Luck, executive chairman of Capital on Tap, said in the release. “Now they can supercharge their earnings and make the most of our 1% cashback.”

With this new feature, customers can earn unlimited 1% cash-back rewards on spending from both their credit balance and the cash they have preloaded onto their account, according to the press release. By preloading they can pay for big-ticket items that would normally exceed their regular credit card limits while earning cash-back rewards on the purchase.

The Preloading feature also allows customers to instantly access their preloaded funds alongside their credit, making for seamless spending and simplified accounting, the release said. All spending appears on one monthly statement.

Another benefit of the new feature is that it allows customers to free up credit access by prepaying pending balances immediately and paying down balances faster, per the release.

“With Preloading, entrepreneurs and small business owners no longer have to worry about hitting credit limits when it comes to earning cashback,” Luck said in the release. “We are removing barriers and giving customers unlimited potential to earn as they build their businesses on their own terms.”

The working capital optimization of a commercial card can be particularly attractive for SMBs to procure inventory, Alex Miles, who was Capital on Tap’s head of growth at the time and is now the company’s chief operating officer, told PYMNTS in an interview posted in July 2020.

Cards offer the ability to pay a supplier immediately, while a business owner can take up to 42 days to settle the bill interest-free, Miles said. Meanwhile, that business will sell that inventory, using the proceeds to repay the card.

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