Compare the best business credit cards of 2020

Capital on Tap Business Rewards Credit Card

• Up to 1% cashback or 1 Avios per pound spent
• Up to 10,000 bonus points when you spend £5,000 in 3 months
• Up to 20 free supplementary cards
• Up to 56 interest-free days on purchases each billing cycle

Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).

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Business credit cards are designed to suit the financial needs of different types of companies, ranging from small startups to major corporations. These cards allow you to keep your business and personal expenses separate, assign cards to employees, manage your cash flow, track your finances and earn rewards. Just as with personal credit cards, there’s a range of factors to consider before deciding if a business card is right for you.

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Name	Product	Purchases	Annual/monthly fees	Rewards earn rate	Rep. APR	Link	Incentive	Representative example
Capital on Tap Business Credit Card		22.9%	£0	N/A	22.9% (variable)	Go to site More Info	Upgrade to Capital on Tap Business Rewards Card for £99 pa to earn 1 point for every £1 spent. 1 point can be redeemed for either 1 Avios or 1p in cashback. 10,000 bonus points when £5,000 spent in first 3 months. Up to 20 free supplementary cards available.	Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).	Compare	loading Fetching your data...
Capital on Tap Business Rewards Credit Card		22.9%	£99 p.a.	1 point per £1 spent	22.9% (variable)	Go to site More Info	Earn 1 point for every £1 spent. 1 points can be redeemed for either 1 Avios or 1p in cashback. 10,000 bonus points when £5,000 spent in first 3 months. Up to 20 free supplementary cards available.	Representative example: When you spend £1,200 at a purchase rate of 22.9% (variable) p.a., your representative rate is 22.9% APR (variable).	Compare	loading Fetching your data...
British Airways American Express Accelerating Business Card		22.2%	£210 per annum	1.5 points per £1 spent	80.3% (variable)	Go to site More Info	Earn 1.5 On Business Points for every £1 spent with BA on eligible flights and 1.5 Avios for every eligible £1 spent on credit card. Earn an extra 3,000 On Business Points annually when £20K or more spent by card anniversary.	Representative example: When you spend £1,200 at a purchase rate of 22.2% (variable) p.a. with a fee of £210 per annum, your representative rate is 80.3% APR (variable).	Compare	loading Fetching your data...
American Express Gold Business Card		N/A (this product is a charge card).	Year 1 - £0, Year 2 onwards - £125	1 point per £1 spent	N/A (this product is a charge card).	Go to site More Info	Earn 20,000 bonus Membership Rewards® points when you spend £3,000 in first 6 months of Card membership. Earn 1 Membership Rewards® point for every £1 spent thereafter.		Compare	loading Fetching your data...
American Express Platinum Business Card		N/A (this product is a charge card).	£595 p.a.	1 point per £1 spent	N/A (this product is a charge card).	Go to site More Info	Earn 18,000 Membership Rewards points for each approved referred friend.		Compare	loading Fetching your data...
Metro Bank Business Credit Card Mastercard		14.9%	£0	N/A	14.9% (variable)	More Info		Representative example: When you spend £1,200 at a purchase rate of 14.9% (variable) p.a., your representative rate is 14.9% APR (variable).	Compare	loading Fetching your data...
HSBC Commercial Credit Card Visa		15.9%	Year 1 - £0, Year 2 onwards - £32 per annum	N/A	22% (variable)	More Info	Identity Theft Assistance helpline and online tool. Liability Waiver for companies who have two or more cardholders. 24 hour customer service support.	Representative example: When you spend £1,200 at a purchase rate of 15.9% (variable) p.a. with a fee of Year 1 - £0, Year 2 onwards - £32 per annum, your representative rate is 22% APR (variable).	Compare	loading Fetching your data...
Bank of Scotland Business Credit Card Mastercard		17.57%	£32 per annum	N/A	22.4% (variable)	More Info		Representative example: When you spend £1,200 at a purchase rate of 17.57% (variable) p.a. with a fee of £32 per annum, your representative rate is 22.4% APR (variable).	Compare	loading Fetching your data...
Clydesdale Bank Business Mastercard		16.9%	Year 1 - £0, Year 2 onwards - £28 per annum	N/A	22.4% (variable)	More Info	Receive discounts at participating retailers with the Mastercard Business Savings scheme.	Representative example: When you spend £1,200 at a purchase rate of 16.9% (variable) p.a. with a fee of Year 1 - £0, Year 2 onwards - £28 per annum, your representative rate is 22.4% APR (variable).	Compare	loading Fetching your data...
Lloyds Bank Business Credit Card Mastercard		17.57%	£32 per annum	N/A	22.4% (variable)	More Info		Representative example: When you spend £1,200 at a purchase rate of 17.57% (variable) p.a. with a fee of £32 per annum, your representative rate is 22.4% APR (variable).	Compare	loading Fetching your data...
Yorkshire Bank Business Mastercard		16.9%	Year 1 - £0, Year 2 onwards - £28 per annum	N/A	22.4% (variable)	More Info	Receive discounts at participating retailers with the Mastercard Business Savings scheme.	Representative example: When you spend £1,200 at a purchase rate of 16.9% (variable) p.a. with a fee of Year 1 - £0, Year 2 onwards - £28 per annum, your representative rate is 22.4% APR (variable).	Compare	loading Fetching your data...
Santander Business Cashback Credit Card Mastercard		18.9%	£30 per annum (fee paid is per business, not per card)	N/A	23.7% (variable)	More Info	1% after £1 of monthly spend. Cashback paid Monthly into Card Account.	Representative example: When you spend £1,200 at a purchase rate of 18.9% (variable) p.a. with a fee of . All - Fee paid is per business, not per card: £30 per annum, your representative rate is 23.7% APR (variable).	Compare	loading Fetching your data...
NatWest Business Credit Card Mastercard		18.268%	Year 1 - £0, Year 2 onwards - £30 per annum	N/A	24.3% (variable)	More Info	Free 'online account servicing'.	Representative example: When you spend £1,200 at a purchase rate of 18.268% (variable) p.a. with a fee of Year 1 - £0, Year 2 onwards - £30 per annum, your representative rate is 24.3% APR (variable).	Compare	loading Fetching your data...
Royal Bank of Scotland Business Credit Card Mastercard		18.268%	Year 1 - £0, Year 2 onwards - £30 per annum	N/A	24.3% (variable)	More Info	Free 'online account servicing'.	Representative example: When you spend £1,200 at a purchase rate of 18.268% (variable) p.a. with a fee of Year 1 - £0, Year 2 onwards - £30 per annum, your representative rate is 24.3% APR (variable).	Compare	loading Fetching your data...
Barclaycard Business Flex Credit Card Mastercard		24.9%	£0	N/A	24.9% (variable)	More Info	Business Rewards - giving a range of discounts and rebates (up to 66% off AA membership, save 20% on B2B marketing sites and access to 99 UK business credit reports for £75, 5% Avis rebate, 15% off Ryman's stationary, up to 15% off with APH, £60 driving credit and first year membership free with Zipcar, first year of FSB registration free, 20% off bPay by Barclaycard device, up to 15% off ecommerce website with cloudBuy, 5% rebate on online advertising spend with Bing, 10% off selected hotel reservations for business trips with booking.com, 4% rebate at over 5,000 hotels and 10,000 restaurants and 1% rebate at petrol stations at selected locations with the USA and Canada with Mastercard, 3% off business flights with flybmi and 25% off first £200 spend at Amazon Business).	Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).	Compare	loading Fetching your data...
Toolstation Trade Card Mastercard		0% for 3 months reverting to 24.9%	£0	N/A	24.9% (variable)	More Info	0% for 60 days on purchases made at Toolstation and participating group companies.	Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).	Compare	loading Fetching your data...
Travis Perkins Trade Credit Card Mastercard		0% for 3 months reverting to 24.9%	£0	N/A	24.9% (variable)	More Info	0% for 60 days on purchases made at Travis Perkins and participating group companies.	Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).	Compare	loading Fetching your data...
Barclaycard Business Select Credit Card Mastercard		0% for 3 months reverting to 19.9%	£42 per annum	N/A	28.6% (variable)	More Info	Business Rewards - giving a range of discounts and rebates (up to 66% off AA membership, save 20% on B2B marketing sites and access to 99 UK business credit reports for £75, 5% Avis rebate, 15% off Ryman's stationary, up to 15% off with APH, £60 driving credit and first year membership free with Zipcar, first year of FSB registration free, 20% off bPay by Barclaycard device, up to 15% off ecommerce website with cloudBuy, 5% rebate on online advertising spend with Bing, 10% off selected hotel reservations for business trips with booking.com, 4% rebate at over 5,000 hotels and 10,000 restaurants and 1% rebate at petrol stations at selected locations with the USA and Canada with Mastercard, 3% off business flights with flybmi and 25% off first £200 spend at Amazon Business).	Representative example: When you spend £1,200 at a purchase rate of 19.9% (variable) p.a. with a fee of £42 per annum, your representative rate is 28.6% APR (variable).	Compare	loading Fetching your data...
NatWest Business Plus Credit Card Mastercard		14.816%	£70 per annum	0.5% cashback	29% (variable)	More Info	0.5% after £1 of yearly spend. Maximum of £400 cashback paid per month. Cashback paid Monthly into Card Account. 2% cashback on eligible trade and business supplies, 1% cashback on eligible fuel and hotel accommodation and 0.5% cashback on all other business spending. Max £400 per annum.	Representative example: When you spend £1,200 at a purchase rate of 14.816% (variable) p.a. with a fee of £70 per annum, your representative rate is 29% APR (variable).	Compare	loading Fetching your data...
Royal Bank of Scotland Business Plus Credit Card Mastercard		14.816%	£70 per annum	0.5% cashback	29% (variable)	More Info	0.5% after £1 of yearly spend. Maximum of £400 cashback paid per month. Cashback paid Monthly into Card Account. 2% cashback on eligible trade and business supplies, 1% cashback on eligible fuel and hotel accommodation and 0.5% cashback on all other business spending. Max £400 per annum.	Representative example: When you spend £1,200 at a purchase rate of 14.816% (variable) p.a. with a fee of £70 per annum, your representative rate is 29% APR (variable).	Compare	loading Fetching your data...
Cashplus Business Credit Card Mastercard		29.94%	£0	N/A	29.9% (variable)	More Info		Representative example: When you spend £1,200 at a purchase rate of 29.94% (variable) p.a., your representative rate is 29.9% APR (variable).	Compare	loading Fetching your data...
Barclaycard Business Premium Plus Credit Card Mastercard		0% for 6 months reverting to 14.9%	£150 per annum	N/A	49.4% (variable)	More Info	0.5% after £1 of yearly spend. Maximum of £400 cashback paid per year. Cashback paid Anniversary into Card Account. If less than £10 Cashback earned in any Cashback Year, it will not be credited to the account and will not be carried forward to the following year.	Representative example: When you spend £1,200 at a purchase rate of 14.9% (variable) p.a. with a fee of £150 per annum, your representative rate is 49.4% APR (variable).	Compare	loading Fetching your data...

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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 – perhaps to take your team for lunch? These cards often come with an annual fee and may also offer added rewards or perks, such as travel insurance.

• Who are cashback business cards suited to?

  Businesses that plan to use the credit card quite heavily and pay back the balance in full every month, so that the sometimes not-so-great APR of these cards doesn’t really become a problem.

• 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 for example, if a card offers a 1% cashback, you’ll get £1 for every £100 you spend.
  2. Is there a bonus on account opening? For example, it could be that for the first few months the card’s earn-rate is doubled. It’s worth having a look at it, even though, if you want a card for the long term, you shouldn’t give it too much importance.
  3. How much will the card cost to run? Cashback credit cards tend to have high annual fees, so you should weight 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”, 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.
  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 – who’d have thought it?!). It’s important to remember that these cards usually come with higher annual fees and interest rates though, so you’ll need to make sure that the value of the rewards outweighs the costs.

Pros

• Earn rewards on your credit card spending.
• All your business spending counts, so you should be able to earn points more quickly than with your personal credit card.
• Treat yourself and your team to benefits and experiences you wouldn’t normally get.

Cons

• The annual fee can be quite pricey, so you should weight it up against your card usage.
• These cards often leave much to be wished for when it comes to borrowing.

• Who are rewards business cards suited to?

  Businesses that plan to use the credit card quite heavily and pay back the balance in full every month.

• 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? Rewards cards very often 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.

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

This type of rewards business credit card is 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 that 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.

Compare frequent flyer business credit cards earning Avios

Pros

• Earn air miles every time you use your card.
• All your business spending counts, so you should be able to earn points more quickly than with your personal credit card.
• Exchange your miles or points for free flights, hotel stays or flight and room upgrades.

Cons

• These cards usually come for a not-so-cheap annual fee.
• The interest rate typically offered by these cards isn’t great.

• Who are frequent flyer business cards suited to?

  You guessed it: business owners who fly often. As with any type of rewards credit cards, it’s also advisable to clear your balance in full every month, so that it doesn’t accrue any interest.

• 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 gamechanger.

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 credit score is less than ideal. Bad credit credit cards tend to have a high rate, so it’s imperative that you 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.

Understand and compare bad credit business credit cards

Pros

• Successfully apply for a credit card to help with your business’ cash flow even if your credit history isn’t perfect.
• Improve your business’ credit score by paying the credit card bill in full every month.
• Have your credit limit reviewed as your credit score improves.

Cons

• High interest rates mean you really need to avoid carrying a balance on these cards.
• Very few perks and rewards.

• Who are bad credit business cards suited to?

  Companies that would hardly be accepted for other types of cards because they have black marks on their credit history – for example, because they have repeatedly missed credit repayments in the past.

• 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, that 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.

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. 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 set an alarm for when the 0% period ends, because that’s when your balance will go back to accruing interest.

Pros

• Get a few months’ time to pay back the cost of a large purchase or deal with an emergency.
• Some of these cards may come with extra rewards and perks.

Cons

• The revert rate can be quite high, so you need to clear your balance before it ends.
• The introductory 0% period only lasts a few months.

• Who are 0% purchase business cards suited to?

  Companies that need to spread the cost of a large purchase or are expecting to spend more than usual for a few months.

• 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 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. Some options even offer the same standard interest rate for purchases, cash advances and balance transfers. Many low rate business credit cards also have a low annual fee.

Pros

• Affordable rates allow for some flexibility when it comes to paying back the credit card balance.
• Annual fees are usually quite competitive as far as business credit cards go.
• Good choice if you’re more worried about the financial features of a card than about earning rewards.

Cons

• They require a good credit score (or your business won’t get the advertised rate).
• Don’t expect many rewards or perks to come with these cards.

• Who are low rate business cards suited to?

  Small businesses that need a cost-effective way to finance major expenses as they arise. They can also suit businesses that want a credit card on hand for any unexpected costs, or have seasonal and variable amounts of revenue.

• 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

Foreign transaction fees can quickly amount to a small fortune if you use your business credit card abroad. They can be up to 3%, which means that if you spend, say, £500 in a currency other than sterling, you’ll be charged £15 in fees. With these cards instead, making payments abroad is free; if you’re lucky, you may be able to find a travel credit card that also gives you reward points for your spending.

Compare business cards with no foreign transaction fees

Pros

• Avoid expensive currency conversion fees when you travel.
• These cards sometimes come with additional travel rewards and perks.
• As long as they’re on the Mastercard or Visa circuit, they’ll be widely accepted abroad.

Cons

• Not necessarily the cheapest option if you can’t clear your balance in full every month.

• Who are travel business cards suited to?

  Companies that do a lot of travelling outside the UK.

• 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 weight 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.

More about business credit cards

With business credit cards, it’s the business entity that is responsible for managing the account. If there’s an issue with the account, the entire business will be held responsible, rather than one individual person who’s linked to the account. Likewise, rates and credit limits can be based on the turnover and credit background of the company, rather than the individual.

Business credit cards vs personal credit cards

Unlike personal credit cards, business credit cards are designed specifically for work spending and often 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 designed 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). Both personal and business credit cards also include costs in the form of annual fees and interest rates, as well as perks such as rewards programmes or complimentary insurance.

What are business charge cards?

A charge card 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 to charge cards as there is no revolving line of credit, but they often apply hefty late fees if you don’t pay the balance in full by the due date.

Business charge cards are designed for organisations that have the financial stability to clear their balance each billing cycle, which will typically be between 25 and 51 days. If you are looking to borrow funds over a longer period of time, business credit cards may offer more flexibility.

Despite these different account structures, charge cards do have many similar features to conventional credit cards, including expense tracking tools, supplementary cards, rewards programmes and complimentary extras. As a result, they are often put in the same category as business credit cards.

Full guide to charge 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

  Choosing a card should depend, to a significant extent, on the spending habits of your business. You should aim match these spending habits to card features. For example, 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 plans to rely on the card primarily to borrow money, a card with a low interest rate, low fee or interest-free days is likely to be the most affordable option. Business cards that offer a lot of “bells and whistles” may seem appealing, but always 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. Additionally 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.

What is APR?

Credit card promotions (both for business and personal cards) have to include an Annual Percentage Rate (APR), which all card issuers must calculate in the same way.

The APR takes into consideration the default interest rate plus any mandatory, regular account fees (namely, a card’s annual fee). It basically tells you how much it is going to cost you to carry a balance on the card for one year.

There are two main catches. The first is that the Financial Conduct Authority (FCA) states that this rate must be what 51% (or more) of people accepted for a card receive. That means that up to 49% of those accepted for a credit card may end up paying a higher rate. This is why it’s often called “Typical” or “Representative” APR. This is especially relevant to you if your business credit score isn’t ideal or if it’s the first time you try to borrow money for your business: you may end up being offered a higher rate.

Secondly, the APR is a handy figure, but it isn’t necessarily the most useful thing to look at when comparing cards. For example, if you’re considering a rewards credit card, keep in mind that the APR doesn’t reflect the value of the points you’ll get for using it. Fees for using the card abroad are also not part of the APR. Ultimately, it all comes down to what you need the card for.

Pros and cons of business credit cards

Pros

• Potential tax deductions for claiming a business credit card or charge card annual fee
• Simplified book-keeping/accounting process
• Expense and cashflow management
• Liability options
• Security features
• Customisable credit limits
• Builds business credit
• Additional cardholders
• Complimentary extras specifically designed for businesses
• Available and issued as either Visa, Mastercard or American Express card

Cons

• Require a good credit record and business turnover
• Potentially expensive fees
• Interest charges if you carry a balance
• Can be hard to keep track of employee spending if you’re a small business
• Limits spending to business expenses only
• Purchases are not protected by Section 75 of the Consumer Credit Act, in contrast to purchases mad on a personal credit card

How to apply for a business credit card

If you’re interested in getting a business credit card, the first step is to compare a range of options to find one that is convenient and affordable for your business. Once you have found one, you can usually apply online. Before you apply for a credit card, you’ll need to make sure that you meet the following eligibility requirements and have organised the necessary documents to complete the application:

Eligibility requirements

Much like personal credit cards, cardholders will need to be over 18 and residents of the UK. Some lenders will also stipulate a minimum annual turnover. While cards are available for pretty much any size and kind of company, lenders may have specific products for specific categories of businesses (for example sole traders).

Necessary documents and information

The other details you will be asked to provide vary depending on the card, but generally you will need to provide:

• Contact details. Contact details for you and/or your business.
• Proof of identification. A valid form of identification, such as your driver’s licence or passport.
• Financial information. You may need to provide information about your business income and/or revenue as well as any assets and liabilities, including investments, debts and regular expenses.
• Additional cardholders. If you wish to manage employee spending under the one account, you’ll also need to provide details of all cardholders.
• Accountant’s information. Information on the person or organisation that manages your company books and financial records.
• Other documents. Supporting documentation such as tax statements and investor reports may also be required.

If you’re approved, you could have your card in as few as 5-10 business days (depending on the account and issuer). You can then activate the card, and start using it for your business.

With expense tracking features, additional cards, interest free periods and reward options, credit cards can be a convenient option for both big and small businesses. Now that you know more about them, you can compare your options and find a product that suits your business’ needs.

Frequently asked questions

• Does my business credit card come with travel insurance?

  Some business credit cards come with complimentary travel insurance, but you will need to check this information for the specific cards you’re considering. Depending on the bank and the insurance company they are partnered with, the requirements to qualify for cover and the inclusions will differ. It is important to check the terms and conditions around the travel insurance policy to ensure they match your travelling needs before applying for the credit card.

• How does a business credit card differ from a personal credit card?

  As the name suggests, the features of a business credit card are much better-suited to that of an organisation than a personal credit card. Business credit cards are available on Visa, Mastercard or American Express, but the credit limit, purchase restrictions and features are designed to complement the financial needs of a business. As a result, you may find that the features of a personal credit card are insufficient for your business.

• Can I get a 0% balance transfer credit card for my business?

  Unfortunately, while 0% balance transfer deals are very common for personal credit cards, they’re practically impossible to find when comparing business credit cards. You can still transfer your balance from one card to the other to take advantage of a better rate though.

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

  Credit card companies generally allow between 80-95% of the approved credit limit for balance transfers. The specific amount will depend on your application, credit history and the bank’s lending criteria.

• How many additional cardholders can I get?

  Business credit cards can support up to 99 additional cardholders. To find out how many cardholders you are allowed, refer to the terms of the card(s) you are considering.

• 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 have a response in just a few minutes.

• Are the rewards for business credit cards the same as for personal credit cards?

  The rewards available for redemption can vary between business and personal credit cards and the number of points earned per pound can also vary depending on the type of business credit card and personal credit card you are comparing.

• 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's a business corporate 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.