Compare the best business credit cards for 2024 and get something back

How to choose the best business credit card in July 2024

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 just one type of card and may not offer other types at all.
3. Compare cards. Once you’ve identified providers, compare cards to find the one that best suits your business.
4. Check the whole package. Look at the APR, annual fees, foreign exchange fees, and perks when making your decision.
5. Check you qualify. Most business credit cards have specific eligibity criteria that you must meet to be able to get that card. These typically include a minimum trading period and minimum turnover. Make sure you meet these requirements before applying for any credit product.

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Types of business credit cards available in 2024

Just as with personal credit cards, certain providers focus on specific card types. To find the most suitable credit card for your business, delve into what 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. 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.

Compare cashback business credit cards

• 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? 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 up whether you’ll earn enough in cashback to make the fee worth paying.
  4. What happens if you don’t clear the balance in full? Check what interest rate you’d be paying on your typical balance.
  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.

Our top pick for cashback

4.2 ★★★★★

Finder Score

Go to site 35.2% APR representative variable

The Capital on Tap card is designed for small businesses, offering users the advantage of 1% cashback on their everyday business spending. Additionally, it provides unlimited additional cards for employees at no extra cost. For those seeking more benefits, the optional Business Rewards add-on plan is available, featuring an annual fee of £99. This plan allows users to choose between earning cashback or Avios points with their everyday business transactions. New Business Rewards customers can also enjoy a 10,000 points bonus when they spend £5,000 in the first 3 months.

• Pros and cons

  Pros

  • Uncapped 1% cashback
  • Redeem points for Avios
  • Exclusive business offers
  • 10,000 bonus points when you spend £5,000 in your first 3 months

  Cons

  • The interest rate charged on cash advances (withdrawing cash at an ATM) is 49.88%, which is a bit of a shocker... Don't get lured in by the fact that there's no fee on these withdrawals. The good news is there's an easy workaround: it's free to transfer funds to your business account, so you can just withdraw from that and avoid paying any extra interest.
  • The free transfers out from your Capital on Tap account must be to your linked business account (this will be the account that your direct debit for repayments is taken from).
  • Cash withdrawals and transfers to your business bank account always incur interest from the day of the transaction (your usual "up to 42 days" interest-free won't apply to these parts of your balance.

• Eligibility criteria

  Minimum Age	18
  Min income	Not specified
  Residency	Business and account holder is UK-based
  Availability	Available to new customers
  Minimum turnover	£24,000
  Additional Criteria	You’re an active director or majority shareholder of 25%+ ownership Business is registered as a private limited company (Ltd) or limited liability partnership (LLP) No unsatisfied CCJs against you or your business in the last 12 months

• More details

  Issuer	Capital on Tap
  Network	Visa
  Annual/monthly fees	£99 per annum
  Purchases	35.15%
  Introductory Rewards	Earn 1% cashback for every £1 spent. Upgrade to Capital on Tap Business Rewards Card for £99 pa to choose between earning cashback or Avios and receive 10,000 bonus points when you spend £5,000 on your card in your first 3 months.
  Purchases interest-free period	Up to 42 days

Representative example: When you spend £1,200 at a purchase rate of 35.15% (variable) p.a., your representative rate is 35.2% APR (variable). Optional upgrade to Business Rewards (£99 per year).

Annual/monthly fees	£99 per annum
Purchases	35.15%
Rewards earn rate	1 point per £1 spent

Go to site 35.2% APR representative variable

Rewards business credit cards: Free treats from your business spending

These business cards reward you for paying with your credit card or charge card, usually offering reward points for every £1 spent on eligible purchases. A business 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 business cards usually come with higher annual fees and interest rates. So, like cashback cards, these are best for businesses that plan to use their credit card quite heavily and pay off their credit card bill in full every month (and in the case of charge cards, you will need to clear your balance each month). What’s more, you’ll need to make sure that the value of the rewards outweighs the card 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? Check how many points the card give you for every £1 you spend and how much each point is 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? Check what interest rate you’d be paying on a typical balance.
  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.

Our top pick for rewards

3.8 ★★★★★

Finder Score

Go to site Product is a charge card.

The American Express Business Gold Charge Card is our top pick for rewards. With this card, customers can earn Amex Membership Rewards points with their day-to-day business spending, in addition to bagging themselves an intro bonus of up to 20,000 points when spending £3,000 in the first 3 months. These points can then be redeemed in several ways, including on flights, hotel stays, experiences or gift cards. This particular Amex is a charge card, which means users need to pay off their balance in full each month. There’s no annual fee for the first year of having this card, but from the second year onwards the annual fee rises to £195.

• Pros and cons

  Pros

  • Welcome bonus offer
  • Points on eligible spend
  • No annual fee in year 1

  Cons

  • Annual fee applies. Year 1 - £0, Year 2 onwards - £195
  • Applicants with low credit scores are unlikely to be eligible
  • 2.99% non-sterling transaction fee

• Eligibility criteria

  Minimum Age	18
  Min income	Not specified
  Residency	Applicants must have a permanent UK home address.
  Additional Criteria	The business has a current UK Bank or Building Society account.

• More details

  Network	Amex
  Annual/monthly fees	Year 1 - £0, Year 2 onwards - £195
  Introductory Rewards	Earn 20,000 bonus Membership Rewards® points when you spend £3,000 in the first 3 months. Terms apply.
  Purchases interest-free period	Up to 54 days

Annual/monthly fees	Year 1 - £0, Year 2 onwards - £195
Rewards earn rate	1 point per £1 spent

Go to site Product is a charge card.

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 interest 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.

Compare bad credit business credit cards

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

  1. Are you eligible? Bad credit credit cards typically 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? Check for 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 discounts or treats.

Our top pick for improving your credit score

4.2 ★★★★★

Finder Score

Go to site 35.2% APR representative variable

The Capital on Tap Business Credit Card is our top pick for improving your credit score, as applicants with a low credit rating may be eligible for this business credit card. Responsible use of this card can then help users build their credit score. The Capital on Tap card is designed for small businesses and is a great all-rounder. Users can get 1% cashback on their everyday business spending, and the preloading feature means the card’s credit limit can be topped up with your own funds. Unlimited additional cards for employees are available at no extra cost, and Capital on Tap also integrates with accounting software packages such as Xero and Quickbooks.

Capital on Tap’s preloading feature is unusual for a business credit card, and means that users can boost their spending power beyond their credit limit by topping up the card with their own funds.”

• Pros and cons

  Pros

  • Capital on Tap offers out-of-the-box integrations with Xero, Quickbooks, FreeAgent, Sage and KashFlow.
  • You get up to 42 days to spread the cost of purchases (provided you pay off your balance in full each month). Plus, this even applies to non-sterling transactions, which isn't always the case.
  • The Capital on Tap app (which is fun to say) for Android or iPhone is a quick and easy way to log in to your online portal and offers the same functionality. It can be used by both the main account holder and supplementary cardholders, but as you might expect, the main account holder will be able to access more features.
  • You can get unlimited additional cards at no additional cost for employees and partners.
  • There are no currency conversion charges when you use your card overseas. You’ll just be charged the Visa conversion rate.
  • Applicants with low credit scores may be eligible.
  • You can opt for the fee-free deal or shoulder a small annual fee of £99 p.a. to access more lucrative rewards.
  • You can top up your credit balance with your own funds to use alongside your credit limit and earn cashback on the full amount you spend.

  Cons

  • Although there are no fees for cash withdrawals, you will be charged interest from the moment you get your cash. Interest is charged daily and calculated monthly for the amount of time you borrow the funds, which means it can become expensive.
  • The free transfers out from your Capital on Tap account must be to your linked business account (this will be the account that your direct debit for repayments is taken from).
  • Transfers to your business bank account always incur interest from the day of the transaction (your usual "up to 42 days" interest-free won't apply to this part of your balance, in the same way as cash withdrawals).

• Eligibility criteria

  Minimum Age	18
  Min income	Not specified
  Residency	Business and account holder is UK-based
  Availability	Available to new customers
  Minimum turnover	£2,000 per month
  Additional Criteria	You’re an active director or majority shareholder of 25%+ ownership Business is registered as a private limited company (Ltd) or limited liability partnership (LLP) No unsatisfied CCJs against you or your business in the last 12 months

• More details

  Issuer	Capital on Tap
  Network	Visa
  Annual/monthly fees	£0
  Purchases	35.15%
  Purchases interest-free period	Up to 42 days

Representative example: When you spend £1,200 at a purchase rate of 35.15% (variable) p.a., your representative rate is 35.2% APR (variable).

Annual/monthly fees	£0
Purchases	35.15%
Rewards earn rate	1 point per £1 spent

Go to site 35.2% APR representative variable

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, but as these are rewards cards which may have a higher APR, it’s best to clear the balance in full each month.

Compare frequent flyer business credit cards earning Avios

• 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? Check how many points the card will 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? Check for an annual fee. Will you earn enough rewards to make it worth it?
  6. What happens if you don’t clear the balance in full? Look at the interest rate.
  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.

Our top pick for frequent flyers

4.2 ★★★★★

Finder Score

Go to site 35.2% APR representative variable

The Capital on Tap Business Credit Card with Business Rewards is our top pick for frequent flyers. Business Rewards is the optional add-on plan to the standard Capital on Tap Business Credit Card, and comes with an annual fee of £99. Users can choose whether to earn cashback or Avios points with their everyday business spending, and new Business Rewards customers could also benefit from a 10,000 points bonus when spending £5,000 in their first 3 months. The standard Capital on Tap card features also apply, and include free additional cards for employees, integrations with accounting software packages and the card’s preloading feature.

Small business owners who are frequent flyers might want to opt for Capital on Tap’s Business Rewards plan and take advantage of earning Avios points, if the value of those points will outweigh the card’s annual fee.”

• Pros and cons

  Pros

  • Uncapped 1% cashback
  • Redeem points for Avios
  • Exclusive business offers
  • 10,000 bonus points when you spend £5,000 in your first 3 months

  Cons

  • The interest rate charged on cash advances (withdrawing cash at an ATM) is 49.88%, which is a bit of a shocker... Don't get lured in by the fact that there's no fee on these withdrawals. The good news is there's an easy workaround: it's free to transfer funds to your business account, so you can just withdraw from that and avoid paying any extra interest.
  • The free transfers out from your Capital on Tap account must be to your linked business account (this will be the account that your direct debit for repayments is taken from).
  • Cash withdrawals and transfers to your business bank account always incur interest from the day of the transaction (your usual "up to 42 days" interest-free won't apply to these parts of your balance.

• Eligibility criteria

  Minimum Age	18
  Min income	Not specified
  Residency	Business and account holder is UK-based
  Availability	Available to new customers
  Minimum turnover	£24,000
  Additional Criteria	You’re an active director or majority shareholder of 25%+ ownership Business is registered as a private limited company (Ltd) or limited liability partnership (LLP) No unsatisfied CCJs against you or your business in the last 12 months

• More details

  Issuer	Capital on Tap
  Network	Visa
  Annual/monthly fees	£99 per annum
  Purchases	35.15%
  Introductory Rewards	Earn 1% cashback for every £1 spent. Upgrade to Capital on Tap Business Rewards Card for £99 pa to choose between earning cashback or Avios and receive 10,000 bonus points when you spend £5,000 on your card in your first 3 months.
  Purchases interest-free period	Up to 42 days

Representative example: When you spend £1,200 at a purchase rate of 35.15% (variable) p.a., your representative rate is 35.2% APR (variable). Optional upgrade to Business Rewards (£99 per year).

Annual/monthly fees	£99 per annum
Purchases	35.15%
Rewards earn rate	1 point per £1 spent

Go to site 35.2% APR representative variable

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 for them: 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 in interest if you haven’t cleared your balance by the end of the 0% introductory period.
  3. How much will the card cost to run? Check for 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 for purchases to cover 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? Check to see if there’s an annual fee.
  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.

Our top pick for low rate

3.9 ★★★★★

Finder Score

Read review

33.4% APR representative variable

The Funding Circle FlexiPay Business Credit Card is our pick for a low rate card. Business cardholders can also earn 1.25% cashback on their spending for the first 3 months, plus they have the option to spread the cost of their purchases over 3 months. With the FlexiPay card, users are charged a flat fee for every transaction they make. The fee ranges from 3.9% to 5.9% depending on the assessment Funding Circle makes when customers apply for the card. The card transactions are then grouped together in a monthly balance, which can be paid off over the course of 3 equal monthly instalments. If the monthly balance is under £100, it will be rolled over to the next month. You can’t use the FlexiPay card to withdraw cash from an ATM.

• Pros and cons

  Pros

  • No annual or set up fees
  • Manage and track business expenses in one place
  • Pay off balance over 3 months

  Cons

  • You'll be charged a flat fee for every transaction

• Eligibility criteria

  Min income	Not specified
  Minimum turnover	£80,000
  Minimum trading period	2 years
  Additional Criteria	be a limited company or a limited liability partnership minimum of 2 years trading with 2 sets of financial accounts on companies house minimum annual turnover above £80,000

• More details

  Annual/monthly fees	£0
  Purchases	Flat fee per transaction

Representative example: When you spend £1,200 with a fee of 4.9%, your representative rate is 33.4% APR.

Annual/monthly fees	£0
Purchases	Flat fee per transaction
Rewards earn rate	N/A

Read review

33.4% APR representative variable

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 spending 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. Travel credit cards can also sometimes offer fee-free cash withdrawals, but keep in mind that interest is usually charged from the moment you get your cash out.

Compare business cards with no foreign transaction fees

• 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? Check to see if there’s an annual fee. If there is, 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.
  5. What happens if you don’t clear the balance in full? Check what interest rate you’d be paying on a typical balance.

Our top pick for travel

4.2 ★★★★★

Finder Score

Go to site 35.2% APR representative variable

The Capital on Tap Business Credit Card is our top pick for travel, as it comes with fee-free spending abroad. There’s also no fee for withdrawing cash, although cardholders will be charged interest on the amount they take out of a cash machine from the date they withdraw it. The Capital on Tap card is aimed at small businesses, and users can get 1% cashback on their everyday business spending, as well as unlimited additional cards for employees at no extra cost. The preloading feature means that the card’s credit card limit can be topped up with your own funds, and a Capital on Tap card account can also be linked up with accounting software.

The fee-free spending abroad is a great travel feature of the Capital on Tap Business Credit Card, especially when combined with its 1% cashback.”

• Pros and cons

  Pros

  • Capital on Tap offers out-of-the-box integrations with Xero, Quickbooks, FreeAgent, Sage and KashFlow.
  • You get up to 42 days to spread the cost of purchases (provided you pay off your balance in full each month). Plus, this even applies to non-sterling transactions, which isn't always the case.
  • The Capital on Tap app (which is fun to say) for Android or iPhone is a quick and easy way to log in to your online portal and offers the same functionality. It can be used by both the main account holder and supplementary cardholders, but as you might expect, the main account holder will be able to access more features.
  • You can get unlimited additional cards at no additional cost for employees and partners.
  • There are no currency conversion charges when you use your card overseas. You’ll just be charged the Visa conversion rate.
  • Applicants with low credit scores may be eligible.
  • You can opt for the fee-free deal or shoulder a small annual fee of £99 p.a. to access more lucrative rewards.
  • You can top up your credit balance with your own funds to use alongside your credit limit and earn cashback on the full amount you spend.

  Cons

  • Although there are no fees for cash withdrawals, you will be charged interest from the moment you get your cash. Interest is charged daily and calculated monthly for the amount of time you borrow the funds, which means it can become expensive.
  • The free transfers out from your Capital on Tap account must be to your linked business account (this will be the account that your direct debit for repayments is taken from).
  • Transfers to your business bank account always incur interest from the day of the transaction (your usual "up to 42 days" interest-free won't apply to this part of your balance, in the same way as cash withdrawals).

• Eligibility criteria

  Minimum Age	18
  Min income	Not specified
  Residency	Business and account holder is UK-based
  Availability	Available to new customers
  Minimum turnover	£2,000 per month
  Additional Criteria	You’re an active director or majority shareholder of 25%+ ownership Business is registered as a private limited company (Ltd) or limited liability partnership (LLP) No unsatisfied CCJs against you or your business in the last 12 months

• More details

  Issuer	Capital on Tap
  Network	Visa
  Annual/monthly fees	£0
  Purchases	35.15%
  Purchases interest-free period	Up to 42 days

Representative example: When you spend £1,200 at a purchase rate of 35.15% (variable) p.a., your representative rate is 35.2% APR (variable).

Annual/monthly fees	£0
Purchases	35.15%
Rewards earn rate	1 point per £1 spent

Go to site 35.2% APR representative variable

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 items you buy which are charged to the card. These cards allow you to defer payment until the end of the statement period, when you must pay off the account in full. Interest rates don’t apply but many providers apply a hefty late fee.

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 having a different account structure, charge cards share features with 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:
  • Rewards 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