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To get a credit limit increase in the UK, you should consistently pay your balance on time, keep your credit utilisation low, and ensure your business financial data is up to date. Lenders look for a proven track record of responsible borrowing and healthy cash flow before approving higher limits for your business.
As your business scales, your financial requirements naturally evolve. A credit limit that worked for you at launch might not provide enough headroom six months later. Whether you need to manage seasonal stock or fund a new marketing campaign, understanding how credit limits work is essential for maintaining a healthy cash flow.
Why business credit limits matter
Your credit limit is more than just a spending cap; it is a tool for operational flexibility. Having a business credit card limit that reflects your business's size and spending needs allows you to react quickly to opportunities without dipping into your cash reserves.
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Support for high-volume spending: A higher limit allows you to consolidate more of your everyday business spending in one place. Using your card for as many expenses as possible makes it easier to track your outgoings and maximise rewards.
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Emergency buffer: It provides a safety net for unexpected repairs or sudden spikes in supplier costs.
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Operational headroom: A generous credit limit ensures you have the capacity to handle large stock orders or marketing pushes without interruption.
What to think about before requesting an increase
Before you head to your portal to ask for more credit, take a moment to assess your current financial position.
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Identify your objective: Are you looking for a permanent increase or a temporary boost? If you only need extra headroom for a one-off purchase and you’re a Capital on Tap customer, our Preloading feature is a great alternative. It allows you to add your own funds to your account to spend beyond your credit limit while still earning rewards on every pound spent.
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Review your cash flow: A higher limit carries the potential for larger monthly repayments. Review your recent cash flow to ensure your business can comfortably manage the shift if you decide to utilise the additional credit.
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Review your account history: Lenders typically look for a proven track record of stability. If you have only recently opened your account or have received an increase in the last few months, it may be worth waiting. Most providers, including Capital on Tap, prefer to see at least 3 to 6 months of consistent, on-time payment history.
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Risk of over-borrowing: Ensure your business remains in a strong position to meet repayments to avoid accumulating high-interest debt.
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Impact of manual reviews: When you request an increase, a lender will perform a fresh assessment of your business which could affect your business credit score.
When is the right time to get a credit limit increase?
Timing is everything when it comes to credit. While you can technically request an increase at any time, certain triggers suggest your business is in a strong position to be approved for more capital.
After a period of consistent growth: If your quarterly or annual turnover has increased significantly, your current limit may no longer reflect your business's scale. Lenders view rising revenue as a sign that you can support higher repayment obligations.
When your credit score improves: If you have recently cleared other debts or improved your business credit rating, you may qualify for better terms. A higher credit score often unlocks access to larger limits and potentially lower interest rates.
What triggers a credit limit increase?
At Capital on Tap, we want to support your success proactively. We constantly review our customers' accounts to see if they are eligible for a higher limit or a better interest rate based on their recent performance. You might receive a notification in your app or via email offering an automated increase.
To improve your chances of an offer or a successful manual request, our team recommends focusing on these five key areas:
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Regular use of your card: Active accounts provide the data we need to assess your spending patterns and justify a higher limit.
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Timely repayments: This is the most important factor. Always make your payments on time (or early) and avoid late fees, as this demonstrates responsible borrowing.
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Active Direct Debit connections: Keeping your Direct Debit active ensures payments are never missed and shows a commitment to managing your account smoothly.
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Up-to-date company filings: Ensure your business information with Companies House is current. Accurate public records build trust and confirm your business is active and compliant.
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Maintain an active Open Banking connection: Keeping your Open Banking connections up to date allows us to see your business's real-time performance, which helps us make faster and more accurate limit decisions.
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Strong performance across all credit: Avoid adverse behaviour with other credit facilities or lenders. A healthy credit profile across your entire business shows you can manage multiple lines of credit effectively.
How do I increase my limit?
As a Capital on Tap customer, if you haven’t received a proactive offer and feel your business needs more headroom, you can request a manual review.
What information do I need?
For many requests, we can make a decision based on the information we already have. However, on some occasions, additional information may be requested. This may involve connecting your account via Open Banking or providing recent business bank statements.
How to submit a manual request
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Log in to your portal: Access your account via our website or mobile app.
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Navigate to 'Your account': Select the 'Credit limits and rates' section.
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Provide your data: Enter your updated financial information and follow the prompts.
Alternatively, you can contact our 24/7 UK-based support team on 020 8962 7401 to discuss your requirements with our team.
Please be aware that a manual review may result in a higher limit, a lower limit, or a change in your interest rate.
The bottom line
A credit limit increase is a milestone that reflects your business's growth and financial health. By maintaining a clean repayment history and keeping your business details updated, you put yourself in the best position to access higher limits. Remember that while a higher limit offers more flexibility, it must be managed responsibly to protect your business's long-term credit-worthiness.
Frequently asked questions
How often can I request a credit limit increase?
While there is no strict limit on how often you can ask, it is generally best to wait at least 3 to 6 months between requests. This gives you enough time to demonstrate a consistent pattern of responsible spending and repayment.
Does requesting an increase hurt my credit score?
Requesting a credit limit increase with Capital on Tap typically involves a review of your current account performance and may involve a soft search, which typically does not impact your credit score.
What should I do if my request is declined?
If your request is not approved, make sure your business information with Companies House is accurate and focus on ensuring all payments are made on time. You can also contact our support team to understand the specific reasons for the decision and what steps you can take to improve your chances of qualifying in future.
Can I spend more than my credit limit?
You cannot spend past your credit limit on credit, but if you’re a Capital on Tap Business Credit Card customer you can use our Preloading feature to add your own funds to your account. This effectively increases your spending power for specific large purchases while still earning rewards.
