Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How do no annual fee business cards work?
Some business owners may find it easier to be approved for a no-fee business credit card than for a standard card. Most of the features are the same as any other business credit card. Your eligibility and credit limit are based on your business credit score, and your business is liable for debts incurred. (Bear in mind that transactions made with a business credit card don’t qualify for purchase protection in the same way as with a personal card.)
Two of the main purposes of having a business credit card are managing your cash flow and earning rewards, bonuses and perks. Business credit cards with no annual fee also tend to come with fewer perks; but they can still give you the flexibility to spend money when you need to, even if you’re waiting for that outstanding invoice to be paid.
Here’s how: provided you clear your balance in full each month, almost all credit cards offer up to 55 or 56 days interest-free each billing cycle.
Say you buy some new equipment for your office at the start of the month, then at the end of the month receive your statement and bill. If you pay off the full balance within the timeframe specified on the statement (typically up to 30 days), you’ll have benefited from almost two months of interest-free credit on that purchase. You’ll usually pay less than you would with a business overdraft, too.
However, if you only make the minimum payment or otherwise pay off less than the full balance, you’ll be charged interest at the card’s standard rate.
What features do I need to consider?
Here are the main features to consider when comparing no-fee business credit cards.
- Interest rate. This determines how much interest you’ll pay each month on outstanding balances. If you’re planning to pay off your balance in full each month, you’ll pay no interest, so the interest rate will be less of a concern.
- Eligibility. Different cards will have different criteria, such as the number of years you’ve been trading, your turnover or the number of staff you have.
- Additional cardholders. With most business credit cards, you’ll be able to supply additional cards to employees, but check the relevant terms and conditions: some card providers will charge a fee for this, while others have useful features, such as the ability to set different credit limits for different cards.
- Other fees. There might not be a fee just for having the card, but will you be charged for non-sterling transactions or cash advances?
- Perks and bonuses. It’s relatively unusual to find business credit cards with rewards and no annual fee; so if you find a fee-free card that offers something you’d genuinely benefit from, it’s worth giving it serious consideration.
- Reporting tools. Some business credit cards come with apps and interfaces to help you track where your money’s going.
Is it ever worth paying an annual fee?
Many fee-charging business credit cards allow you to access bonuses that can save you more money than you spend on the fee, or at least make paying the fee seem worth it.
These perks can include the following:
If you’re planning to use your business credit card frequently, it might make sense to pay a fee to access one or more of these perks. On the other hand, if you’re only planning to use your card for emergencies, or when extra credit is required, a no-fee option will almost certainly be more suitable.
Ultimately, you need to calculate whether the value of the rewards on offer will outweigh the cost of the annual fee.
Also consider whether and when you’ll actually have to pay the fee. If you get a business credit card from American Express, for example, you may find that the annual fee is waived in the first year; and you’re not obliged to keep the card for any given length of time. In fact, when you phone up to cancel a card, it’s not unheard of for the issuer to offer to waive the annual fee if it means retaining your custom.
Frequently asked questions
More guides on Finder
Compare business charge cards
Find the best charge card for your business.
Capital on Tap Business Credit Card review
Earn Avios or cashback on all your business spending with this business Visa from challenger Capital on Tap.
How to compare employee credit cards
Whether you’re an employer comparing business credit card options or an employee trying to figure out how to deal with expenses, here’s what you need to know about employee credit cards.
Business credit cards with high limits
A business credit card with a high limit can be a useful way to boost cash flow for your company.
Compare cashback business credit cards
Most business expenses are unavoidable, so why not bag yourself a company card that pays out on all your business spending?
Compare business credit cards with no foreign transaction fee
If you or your staff frequently travel overseas for business, choose a credit card that won’t charge punishing fees to convert currencies on foreign transactions.
Compare the best Avios business credit cards
Have a look at these business credit cards that let you earn Avios points on all your expenses, no matter whether you’re paying for a flight or buying drinks to celebrate your team’s latest accomplishment.
Can a business credit card affect my personal credit?
Learn when your personal credit score could be affected by business credit card use.
TSB Business Credit Card review
Take control of your business spending and set individual card limits for staff with this TSB deal.
Compare business balance transfer credit cards
Looking to improve cashflow, save interest and consolidate debt? A business balance transfer credit card could be for you.