Compare the best business credit cards for 2023

How to choose the best business credit card for December 2023

1. Work out what you need from a credit card. Are you looking for a business credit card with the lowest rates and fees? Do you want extra features, like rewards when you spend? Or do you want a card designed for business travel?
2. Find providers that offer the type of card you’re after. Some business credit card providers specialise in some types of card, and may not offer others at all.
3. Compare cards. Once you’ve identified providers, compare cards to find the one that best suits your business.
4. Pick the card you want. Make sure to consider things like APR, annual fees, foreign exchange fees, and perks when making your decision.
5. Check your eligibility. Most business credit cards have a specific eligibity criteria that you must meet to be able to apply for that card, these usually contain a minimum trading period and minimum turnover. Make sure you meet these requirements before applying for any credit product.

Types of business credit cards available in 2023

Just like personal credit cards, certain providers focus on specific card types. To find the most suitable credit card that caters to your business’ wants and needs, it’s advisable to delve into what the different cards do. Here are some of the most popular business credit card categories in the UK.

Cashback business credit cards: earn when you spend

With cashback credit cards, you earn cashback every time you use your business card, no matter what for. Cashback is usually paid into your business current account, so you can use it as you wish. Why not use it to treat your team to lunch?

Many of these cards come with an annual fee and may also offer added rewards or perks, such as travel insurance. They don’t tend to have the most competitive APRs, so they’re best for businesses that plan to use the credit card heavily, to maximise their cashback, and then pay back the balance in full every month.

• How can I find the best cashback credit card for my business?

  1. What’s the earn-rate? It’s usually expressed as a percentage, so if a card offers 1% cashback, for example, you’ll get £1 for every £100 you spend.
  2. Do you get a bonus when you open the account? For example, a provider might offer double the earn-rate for the first few months. This isn’t the most important factor, since you’re likely to want your card for the long term, but it’s worth having a look at.
  3. How much will the card cost to run? Cashback credit cards tend to have high annual fees, so you should weigh the pros and cons carefully.
  4. What happens if you don’t clear the balance in full? How expensive is it going to be?
  5. Is your business eligible? Read the eligibility criteria carefully before applying. Some providers will also offer a so-called “eligibility checker”, which will perform a soft search on your business’ credit history and let you know how likely it is to be accepted for the card.
  6. What else can the card do for you? Some cashback cards offer added benefits, such as travel insurance or a concierge service.

Rewards business credit cards: free treats on your business spending

These cards reward you for paying with a credit card, usually offering reward points for every £1 spent on eligible purchases. Unlike personal credit cards, a business credit card with rewards will let you earn points on your work spending (potentially even on your PPC spending).

It’s important to remember that these cards usually come with higher annual fees and interest rates though, so, like cashback cards, these are best for businesses that plan to use the credit card quite heavily and pay back the balance in full every month. What’s more, you’ll need to make sure that the value of the rewards outweighs the fee.

• How can I find the best rewards credit card for my business?

  1. What kind of rewards do you want to redeem? It’s a good idea to compare not only rewards credit cards, but also rewards schemes. You’ll be able to redeem your reward points for a range of discounts and perks, from shopping to travel.
  2. What’s the earn-rate? How many points will the card give you for every £1 you spend? And how much is each point worth?
  3. Is there a bonus on account opening? Many rewards cards come with an introductory bonus. Of course, it’s just a one-off benefit, but it’s still worth checking it out.
  4. How much will the card cost to run? Rewards credit cards tend to have high annual fees, so you should do the maths and make sure you’ll use the card enough to make it worth it.
  5. What happens if you don’t clear the balance in full? How expensive is it going to be?
  6. Is your business eligible? Read the eligibility criteria carefully before applying. Some providers will also offer a so-called “eligibility checker”, that will perform a soft search on your business’ credit history and let you know how likely it is to be accepted for the card.
  7. What else can the card do for you? Some rewards cards offer added benefits, such as travel insurance or a concierge service.

Bad credit business credit cards: get your business credit score back on track

These cards can offer a credit facility to your company even if a few funding issues in the past mean that your company’s credit score is less than ideal, for example if you’ve repeatedly missed credit repayments in the past.

Bad credit credit cards tend to have a high rate, so you must clear your card balance in full every month. Using a bad credit credit card correctly for a while will help your business rebuild its credit history and improve its credit score.

• How can I find the best bad credit credit card for my business?

  1. Are you eligible? Bad credit credit cards are supposed to have quite loose eligibility criteria, but it’s still worth using an eligibility checker if available. It’ll tell you how likely your business is to be accepted for the card without impacting your credit score.
  2. How much will the card cost to run? Is there an annual fee?
  3. What credit limits are available, and when are they reviewed? If your business’ credit score isn’t great, at the beginning you may be offered a low credit limit, which could then be increased if you clear your credit card balance on time for a while and never exceed your credit limit.
  4. What else can the card do for you? Bad credit credit cards aren’t exactly known for their perks, but you may still be able to get some nice little discounts or treats.

Frequent flyer business credit cards: earn air miles for your business trips

This is a particular type of rewards business credit card which will be linked to an existing frequent flyer programme, such as Avios. Some frequent flyer schemes are tied to a specific airline, while others allow you to get points which can be redeemed at a number of airlines.

This kind of business credit card can be particularly lucrative for companies that do a lot of travelling; and again, as these are rewards cards which may have a higher APR, it’s best to clear the balance in full each month.

• How can I find the best frequent flyer credit card for my business?

  1. Which airlines do you normally fly with? Make sure they’re included in the deal. Don’t be tempted to change your flying habits unless you’re 100% confident it’s going to be cheaper or better: a good credit card should adapt to your business, not the other way around.
  2. What’s the earn-rate? How many points will the card give you for every £1 you spend? If you can, also try to figure out how much each point will be worth.
  3. Is there a bonus on account opening? Introductory bonuses are especially worth considering if you’re only looking for a card for the short term.
  4. How much is the foreign currency transaction fee? If you spend much time abroad, foreign currency transaction fees can become really expensive, so either you find a frequent flyer credit card that also offers fee-free spending abroad, or you may want to consider using a different card when you travel.
  5. How much will the card cost to run? How much is the annual fee? Will you earn enough rewards to make it worth it?
  6. What happens if you don’t clear the balance in full? How expensive is it going to be?
  7. Is your business eligible? Read the eligibility criteria carefully before applying. Some providers will also offer a so-called “eligibility checker”, that will perform a soft search on your business’ credit history and let you know how likely it is to be accepted for the card.
  8. What else can the card do for you? Some frequent flyer cards offer added benefits, such as travel insurance or airport lounge access. If you want to travel in comfort, these extra perks can be a game changer.

0% purchase business credit cards: spread the cost of a large purchase

These credit cards charge no interest on your purchases for a few months, allowing you more time and flexibility to pay them back: ideal if your company needs to spread the cost of a major purchase, or if it’s expecting to spend more than usual for a few months. Unlike with personal 0% purchase cards, the introductory deal won’t usually be super long, but if you need to buy, say, a piece of equipment, it’ll give you a bit more time to even out your cash flow. Don’t forget to make a note in your calendar of when the 0% period ends, because that’s when your balance will go back to accruing interest.

• How can I find the best 0% purchase credit card for my business?

  1. How long is the 0% offer? Consider whether it gives you enough time to recuperate or if you should opt for a different type of business finance instead.
  2. What’s the revert rate? This will tell you how much it’s going to cost you if you haven’t cleared your balance by the end of the introductory period.
  3. How much will the card cost to run? Is there an annual fee?
  4. Are you eligible? Read the eligibility criteria carefully before applying. Some providers will also offer a so-called “eligibility checker”, that will perform a soft search on your business’ credit history and let you know how likely it is to be accepted for the card.
  5. What else can the card do for you? Does it offer any extra perks or discounts that could be appealing for your business?

Low rate business credit cards: borrow at a competitive rate

These business credit cards have low standard variable interest rates for purchases and can give companies a more affordable option if they need to pay off spending over a longer period of time. This makes them a good choice for small businesses, businesses with seasonal or otherwise variable revenue, or any businesses that want a credit card on hand for any unexpected costs.

Some business credit cards with low rates even extend the same standard interest rate to cover purchases, cash advances and balance transfers. Additionally, a number of these business credit cards with low rates come with a minimal annual fee.

• How can I find the best low rate credit card for my business?

  1. How low is the rate? If you’re expecting to sometimes have to carry a balance on the card, this is the main thing you should be looking at. It tells you how much borrowing with the card will cost you. Keep in mind that not everyone who applies will get the advertised rate and that your actual deal will also depend on your credit score.
  2. How much will the card cost to run? Is there an annual fee? Is it pricey?
  3. What credit limits are available? How much could you be able to borrow?
  4. Are you eligible? Read the eligibility criteria carefully before applying. Some providers will also offer a so-called “eligibility checker”, that will perform a soft search on your business’ credit history and let you know how likely it is to be accepted for the card.
  5. What else can the card do for you? Perks and rewards aren’t really these cards’ main focus, but they could make a nice extra that can help you choose between two otherwise similar cards.

Travel business credit cards: spend abroad with no fees

Fees for spending in a currency other than pounds sterling can be as much as 3%. That means if you make a £500 foreign transaction, you’ll be charged £15 in fees. If you do a lot of business abroad, that can quickly add up. With a travel business credit card, making payments abroad is free; and some also offer reward points for your spending.

• How can I find the best travel credit card for my business?

  1. Will the fee-free deal apply to the countries you’re visiting? Some travel credit cards only allow fee-free spending abroad in Europe, so make sure that’s not the case for your card if you often need to travel outside the continent.
  2. Does the card offer any other rewards or travel perks? You may find a travel credit card that also lets you collect air miles, or offers added benefits such as travel insurance or airport lounge access.
  3. Are you eligible? Read the eligibility criteria carefully before applying. Some providers will also offer a so-called “eligibility checker”, that will perform a soft search on your business’ credit history and let you know how likely it is to be accepted for the card.
  4. How much will the card cost to run? Is there an annual fee? If that’s the case, you can weigh it up against how much you would pay in foreign currency transaction fees with a different business credit card and decide if it’s worth it.

Business credit cards vs personal credit cards

Unlike personal credit cards, business credit cards are designed for work spending and many include features such as additional cards for employees, customisable spending limits for different users and expense tracking. Some business credit cards may even have analytics tools to help with business reporting and budgeting.

But in most other ways, business credit cards are similar to personal credit cards. With either option, you’ll get access to funds up to a specified limit and be able to pay off what you spend over time (with interest charges). They both also have annual fees and interest rates, as well as perks such as rewards or complimentary insurance.

What are business charge cards?

A charge card is an alternative to a business credit card and acts as a short term (usually monthly) loan to a business for any purchases charged on the card. These cards defer payment until the end of the statement period, when you’re required to pay off the account in full. Interest rates do not apply as there is no revolving line of credit, but many apply hefty late fees.

Business charge cards are designed for organisations that can clear their balance each billing cycle, which is typically between 25 and 51 days. If you are looking to borrow funds over a longer period, business credit cards may offer more flexibility.

Despite different account structures, charge cards do have similar features to traditional credit cards, including expense tracking tools, supplementary cards, rewards programmes and complimentary extras.

Full guide to business charge cards

Does your business use company cars?

If you or your team frequently use company vehicles or rental cars as part of their day-to-day job, it’s worth considering getting a fuel card. Fuel cards are a simplified form of business charge cards that can only be used to purchase petrol and related products, and generally offer discounts on fuel. They are popular with transport companies or those with multiple company cars as they let drivers pay for their fuel costs without having to give them a full-featured credit card.

Full guide to fuel cards

How to compare business credit cards

Comparing business credit cards side-by-side allows you to find an option that is suited to your business’s specific needs. Some of the core factors to compare when weighing up business credit cards include:

• Business spending habits

  The card you need depends largely on the spending habits of your business. If your business uses a credit card to purchase flights, and regularly pays it off, then a frequent flyer card might offer competitive value. On the other hand, if your business needs the card primarily for borrowing, look for a low-interest rate, low fee and/or interest-free days. Business cards offering a lot of “bells and whistles” may seem appealing, but ask yourself if they will have a positive impact on your bottom line.

• Interest rates

  Interest rates can vary hugely from card to card. Some cards charge the same rate for all transactions and others apply different rates depending on whether the transaction is a purchase, cash advance or balance transfer.

• Fees and charges

  Business credit cards feature a range of fees and charges. Some of the most common include:

  • Annual or monthly fees. Business credit card annual fees are usually around £30 a year but can be more.
  • Supplementary cardholder fees. While some business credit cards offer additional cardholders at no extra cost, others may charge up to £75 for extra cards. Check whether fees are “one-offs” or regular charges.
  • Currency conversion fees. This charge is applied for transactions made overseas or in a foreign currency and is typically 3% to 3.5% of the transaction value.
  • Over-limit fees. If you or an employee goes over the credit limit on the account, a fee of around £12 may be applied. Additionally, this may be visible in your business’s credit history.
  • Late payment fees. If you don’t make the minimum payment on your business credit card by its due date, a fee is likely to be applied. This may be visible in your business’s credit history.

• Interest-free days

  Business credit cards offer an interest-free period on purchases – usually around 55 or 56 days – provided you pay your balance in full by the statement due date. This can offer valuable short term cash flow flexibility. Note that non-sterling transactions and cash advances will usually be exempt from this perk.

• Minimum required monthly payments.

  Business credit cards generally have minimum payments of 2% to 4% of the outstanding balance, unless they are charge cards, in which case they need to be paid in full each statement cycle.

• Extra perks

  These may include, but are not limited to:

  • Reward points. Collect reward points per pound spent and redeem these with anything from equipment to days out.
  • Air miles. Collect air miles for popular programmes such as Avios.
  • Online business banking. Business credit cards usually give you all the access you would expect from banking online, such as 24/7 access to your account plus business security options such as encryption technology for peace of mind. Business applications may also allow mobile management so you can bank on-the-go with your business.
  • Complimentary insurance. Many business credit cards include complimentary travel insurance and liability insurance for the account.
  • Airport lounge access. Travel like a VIP with free access for cardholders and, potentially, their guests too.
  • Expense management systems. Keeping on top of business expenses and consolidating your credit card transactions can be difficult among all the other tasks involved in running a business. Expense management systems give you 24/7 control and visibility with standard or custom reports.

Pros and cons of business credit cards

Have you considered business card machines?

Business credit cards are only one element to help manage your business’s cash flow. When it comes to streamlining payments, a business card machine can be a game-changer for any company.

So if your business requires taking payment transactions, having a dedicated card machine to process payments swiftly and securely could avoid the hassle of manual inputs and also help free up your accounts team’s time that could be put back into the business.

Card payment devices also provide valuable insights through detailed transaction data, enabling better financial management and informed decision-making for your business. You can compare a range of card machines via our guide.

Barclaycard Payments Smartpay Touch

£29 a month + VAT

• Card reader & online portal
• Low transaction fees
• Free Accounting plan

Designed to help simplify business admin

Go to site

Overview of business credit cards

The best business card issuer for customer satisfaction in 2023

We asked cardholders to rate their satisfaction with service, and whether they’d recommend their card issuer to a friend. We’ve shown both for each brand in the table below. Our independent survey of 623 card customers was carried out in December 2022. The table is ordered by the percentage of customers who said they’d recommend the brand to a friend.

Card issuer	Logo	Overall satisfaction	Would recommend	Review	Link
American Express		★★★★★	100%	American Express offers a range of credit and charge cards to business customers, helping customers to manage their company’s cash flow while earning exclusive card rewards.	See the range
Bank of Scotland		★★★★★	94%	Bank of Scotland‘s business credit card offers a credit limit of up to £10,000 and up to 20 additional cards for your employers (subject to an annual fee per card).	Read our review
Capital on Tap		★★★★★	91%	Making big waves in the business credit card space, Capital on Tap offers a versatile everyday credit card with the opportunity to earn rewards.	See the range
Santander		★★★★★	91%	Designed with small and medium-sized businesses in mind, Santander offers a flexible business cashback credit card with a reasonable annual fee.	Read our review
RBS		★★★★★	88%	RBS offers its business banking customers a straightforward credit card with a competitive purchase rate.	Read our review
Juni		★★★★★	85%	Designed with digital marketing in mind, Juni‘s charge card offers 1% cashback on eligible spend and helps you keep track of your ad spend.	Read our review
Allstar		★★★★★	100%	Allstar offers a business credit card as an all-in-one card combining a regular business credit card with a fuel card.	Read our review
Lloyds Bank		★★★★★	97%	Lloyds Bank offers a business credit card with relatively low interest rates and flexible repayment options.	Read our review
Barclaycard		★★★★★	94%	Barclaycard offers business credit cards to suit a range of business needs, with a variety of benefits and perks.	See the range
Jeeves		★★★★★	89%	Earn cashback when you spend and avoid foreign transaction fees with this charge card from the expense management platform Jeeves.	Read our review
NatWest		★★★★★	85%	NatWest‘s range of credit cards for its existing business customers come with a variety of features and benefits.	See the range
HSBC		★★★★★	79%	One of the world’s largest banks, HSBC offers a competitive interest-free period and purchase rate with its business credit card.	Read our review

Frequently asked questions

• Does my business credit card come with travel insurance?

  It depends on the card: many do. However, the level of coverage, exclusions and so on differs between cards. If you’re choosing a card specifically for the travel insurance, check the terms and conditions of the card’s travel insurance policy carefully before you apply, to make sure the policy provides the coverage you need.

• Can I make a balance transfer to a business credit card? How much can I transfer?

  Credit card companies generally won’t allow you to make a transfer a balance equivalent to your entire credit limit: there’s usually a maximum of 80-95%. The specific amount will depend on your application, credit history and the bank’s lending criteria.

• How many additional cardholders can I get?

  It depends on the card. Business credit cards in general can offer up to 99 additional cardholders.

• Are business credit cards eligible for instant approval?

  Most business credit cards will not be eligible for instant approval, as there is typically increased risk for business lending. However, depending on your application criteria you could get a response in just a few minutes.

• What's the difference between a business and corporate credit card?

  Corporate credit cards are designed for larger businesses that want one account for business expenses. Corporate business credit cards may provide up to 99 supplementary cards (or more in some cases) and offer pre-set spending limits for each additional cardholder.

• Are there tax implications for using a business credit card?

  Fees and charges paid as a result of using a credit card for business purposes are tax deductible. But there are exceptions and complications when the transaction could be deemed to be for personal benefit, either to you or an employee who uses the card. Check with your bank, accountant, or HMRC about what you can and can’t deduct.

• What business credit card does Martin Lewis recommend?

  Martin Lewis and MoneySavingExpert.com mainly focuses on consumer credit, not business, and hasn’t recommended a specific business credit card for several years.

• How do I check my business credit score?

  Much like your personal credit score, you can find out your business credit score for free by contacting the 3 main credit reference agencies, Experian, Equifax and TransUnion. Find out more about business credit scores here.

• Do business credit cards help your personal credit score?

  There are some circumstances in which applying for and using a business credit card could affect your personal credit score. However, you shouldn’t rely on this as a way to boost your personal credit score: here are some much more effective ways to improve your credit score.

• Do business credit cards help build your credit score?

  Yes, business credit cards could help build your business credit score as long as you keep on top of all your repayments and use the card responsibly e.g. not maxing your credit utilisation ratio. You can check your business credit score from credit reference agencies such as Dun & Bradstreet, Equifax Business and Experian Business.

• Can I use a personal credit card for business?

  Yes; but as your business grows and you spend more, you may find that a business credit card helps you keep your personal and business finances separate, give additional cards to your employees, and build up a business credit score. You’re also likely to get a higher credit limit on a business credit card than you can on a personal one. Find out more about business versus personal credit cards here.

• Is the Brex Credit Card available in the UK?

  No, UK-based businesses can’t apply for a Brex Credit Card.

• Can you get a limited company credit card?

  Depending on the credit card provider, limited companies can apply for a business credit card as long as they meet the other criteria.