Using a business credit card is a popular choice for many companies and organisations, whether they are large corporations or small startups. We looked into the latest statistics to see how companies in the UK are using this form of borrowing.
Business credit card statistics: Highlights
Over 605,000 small and midsize enterprises (SMEs) are estimated to have used credit cards in 2022.
The percentage of SMEs using credit cards has fallen from 18% in 2019 to just 11% in 2022.
Credit card applications made up just 5% of external financing applications by SMEs between July 2021 and December 2022, compared to 50% for bank loans.
Core finance, including credit cards, has become less popular as a financing option for SMEs, having declined from 39% in 2019 to 26% in 2022.
How many businesses use credit cards?
In 2022, only 11% of SMEs used credit cards, which equates to approximately 605,000 businesses. This proportion has fallen since 2019, where around 18%, or 990,000, used credit cards. However, the number of SMEs using credit cards has remained roughly the same between 2021 and 2022.
Between 2014 and 2018, the average credit card use by SMEs was 15.6%. In comparison, the average credit card use from 2019-2022 was 13.2%. This demonstrates that overall credit card use has become less common amongst SMEs in recent years.
Between July 2021 and December 2022, just 5% of applications for external finance by SMEs were for credit cards. Half the applications were for a bank loan, followed by 17% for an overdraft.
How do business credit cards compare to other types of borrowing?
Credit cards are a relatively popular form of external finance. 11% of SMEs used credit cards in 2022. In comparison, 13% used bank loans/commercial mortgages and 10% used a bank overdraft.
Use of core finance (like credit cards, bank loans, bank overdrafts) has declined slightly in recent years. In 2019, 39% of SMEs used core finance, but in 2022, this was just 26%.
20% of SMEs used other forms of finance in 2022, including leasing, invoice finance, loans from family/friends, etc. In 2019, this was just 16% and grew in both 2020 and 2021 to peak at 24%.
Following the pandemic, there have been lower rates of confidence in being approved for external finance options, such as business credit cards. Half of SMEs were confident of their application being successful in 2022, lower than pre-pandemic, where around 7 in 10 businesses were confident.
Net confidence in being approved for external finance has varied significantly over time, but it was highest in the second half of 2021.
Government-backed schemes during the pandemic boosted success rates of applications for financing. This was primarily the result of the Bounce Bank Loan Scheme, which focused on providing loans for SMEs.
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Emily Herring is a Publisher at Finder specialising in credit-based products including credit cards and business and personal loans. Emily has recently joined the Investments team. She has a Masters in Creative Writing & Publishing and a Bachelor of Arts in Communication & Media. See full bio
Emily's expertise
Emily has written 131 Finder guides across topics including:
Financial platform Juni has launched its first virtual business credit card (technically a charge card) in the UK with up to cashback on all your eligible spend and custom credit limits.
Designed for small and medium businesses looking for payment flexibility, this card goes the extra mile with an attractive 1% cashback on all purchases.
Reserved for Lloyds Business customers, this straightforward credit card comes with a competitive interest rate that can help you improve your cash flow.
Allied Irish Bank (GB) offers a select range of business cards offering simplicity or perks.
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