The card, which was launched in December, has attracted 50% more applications in February, March and April demonstrating its value to small business owners as a finance source. Research shows that over a quarter (28%) of micro-businesses in the UK expect to fold within the next two years – that equates to around 1.2 million companies at risk of closure.
Micro-businesses account for 95% per cent of UK companies, employ seven million people and currently contribute over £600bn to the UK economy.
The report found that the vast majority (98%) has no intention of applying for bank loan finance over the next 12 months. Indeed, half (50%) of micro-businesses rely on personal sources of finance to fund their cash flow needs and of these a quarter (25%) use a credit card and 17% an overdraft.
Capital One has launched a Business Platinum credit card designed to help micro-business owners and the self-employed by offering access to all-important day-to-day credit and, at the same time, giving them rewards on their business spend. The Capital One Business Platinum credit card has no annual fee and offers five per cent cashback on all purchases over the first three months (up to a maximum of £100 cashback) and up to 1.25% unlimited cashback thereafter, with a rate of 16.9% p.a variable on purchases and balance transfers.
