Compare business credit cards with no annual fee

A business credit card with no annual fee is likely to appeal to startup founders. You might not get all those appealing perks, but you'll enjoy greater flexibility and spending power.

1 - 7 of 7
Name Product Finder score Finder score Purchases Annual/monthly fees Initial credit limits Representative APR Incentive Link
Barclaycard Payments Select Cashback Business Credit Card
4.0
★★★★★
★★★★★
Expert analysis
27.5%
£0
Min. limit £1,000, max. limit £25,000.
27.5% APR (variable)
*Get 1% uncapped cashback on all your business spend. T&Cs apply.
Representative example: When you spend £1,200 at a purchase rate of 27.5% (variable) p.a., your representative rate is 27.5% APR (variable).
Go to site
Capital on Tap Business Credit Card
4.0
★★★★★
★★★★★
Expert analysis
35.15%
£0
Min. limit £1,000, max. limit £250,000.
35.2% APR (variable)
Earn 1 point for every £1 of card spend. Redeem 1 point for 1p (1% cashback)
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).
Go to site
Metro Bank Business credit card (only available to existing business customers)
4.5
★★★★★
★★★★★
Expert analysis
17.44%
£0
Min. limit £500, max. limit not specified.
18.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 17.44% (variable) p.a., your representative rate is 18.9% APR (variable).
Cashplus Business Credit Card Mastercard
4.0
★★★★★
★★★★★
Expert analysis
29.94%
£0
Min. limit £100, max. limit £3,000.
29.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 29.9% (variable) p.a., your representative rate is 29.9% APR (variable).
Funding Circle FlexiPay Business Credit Card
4.0
★★★★★
★★★★★
Expert analysis
Flat fee per transaction
£0
Min. limit £1,000, max. limit £250,000.
33.4% APR (variable)
Get 1.25% cashback on all card spend with Flexipay for the first 3 months. Terms apply. Always 0% interest, no annual or set up fees, one flat fee per transaction from 3.9%.
Representative example: When you spend £1,200 with a fee of 4.9%, your representative rate is 33.4% APR.
Debite corporate card
4.0
★★★★★
★★★★★
Expert analysis
N/A (this product is a charge card).
£0
Min. limit not specified, max. limit £250,000.
N/A (this product is a charge card).
Earn 4% cashback for the first 3 months on card spending. Cashback is credited to your account after 30 days. Cashback is capped at £1,000 a month.

Juni Business Card (only for ecommerce companies)
4.0
★★★★★
★★★★★
Expert analysis
N/A (this product is a charge card).
£0
Min. limit £10,000, max. limit £2,000,000.
N/A (this product is a charge card).
Made for ecommerce companies only. Earn up to 1% cashback on all eligible Juni card spend.

loading

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.

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:

  • Cashback. A percentage of your spending is added back to your card as credit.
  • Reward points. Some cards earn you points every time you spend, which can be redeemed with selected retailers.
  • Air miles. This is a reward points system that allows you to claim discounts or free flights with certain airlines. This could be particularly lucrative if you do a lot of business travelling.
  • Airport lounge access. Cardholders can relax in luxury in specific VIP airport lounges while they wait for their flights, at no extra cost to them.
  • Complimentary insurance. Many business credit cards include, for example, complimentary travel insurance. Check whether it provides the cover you need before relying on it when you travel.
  • Expense tracking systems. Some cards make it easy to track your expenses by providing detailed analytical software.

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

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

More guides on Finder

Go to site