A high limit business credit card can give you the flexibility you need to manage your business’ cash flow. Use the table below to compare business credit and charge cards that allow high credit limits. Then read the rest of the tips we’ve uncovered on how to get a business credit card with a high limit, and how to know whether it’s the right choice for you.
What is considered a high credit limit business credit card?
A high limit credit card is simply one that gives you access to a larger amount of credit. When we talk about higher limits for business credit cards, we usually mean anything over £10,000 or so.
A business credit card can be used to pay for business expenses and to help manage your company’s cash flow. Business owners also have the option to give supplementary cards to employees and set individual credit limits for each of them, as long as the total business spend doesn’t go over the overall credit limit for the business.
How do credit card providers decide credit limits?
When you apply for a business credit or charge card, the lender will conduct an assessment of your business’s financial history, including your trading history, turnover and profit.
The lender will also check your business credit score. This is a numerical indicator of how reliably your business pays back debts, based on your company’s previous credit history. The bigger your profits and the longer you’ve been trading, the more likely you’ll be trusted with a high credit limit, and a lower interest rate, on your credit card.
The average credit limit on a business credit card tends to be higher than it is for personal credit cards. With an average financial standing, you can expect to be offered between £1,000 and £10,000. But if your financial history indicates that you’re an extremely reliable business to lend to, you could be offered five times this amount, or even more.
And your credit limit isn’t set in stone when your loan application is approved. Many lenders are happy to consider raising your credit limit after you’ve made a few timely monthly repayments on your card.
Credit card jargon explained
APR. The annual percentage rate (APR) is a benchmark for consumers, providing an annual summary of the cost of your card, including any account fees or other compulsory charges as well as interest. However, crucially, providers only have to give the advertised APR to 51% of those who take out the credit card – the other 49% could be offered a different (higher) rate, at the provider’s discretion. That’s why it’s often called the representative APR.
Charge card. This is a type of card that doesn’t come with a set credit limit, but requires you to pay off your balance in full each month.
Earn rate. This is a measure of how many reward points you’ll earn on your card transactions. For example, a credit card may have an earn rate of 1 point per £1 spent, meaning if you spend £5,000, you get 5,000 points.
Purchase rate. This is the percentage rate you’ll be charged on all purchases made using your credit card if you don’t pay off your balance before the end of your interest-free period. It can be a fixed rate, which means it stays the same over time, but is usually variable, which means it can change at any point.
How to compare high limit business credit cards
If you’re in the market for a high limit business credit card, you should compare the following features:
Eligibility checker results. Most card issuers now let you check your likelihood of being approved for a card before you apply, without affecting your credit score, and they’ll sometimes give an indication of the rate and limit you might be offered.
APR. See the definition above. This is the interest rate you’ll pay on outstanding balances. Sometimes you might find a business credit card that offers an introductory 0% interest period as an incentive to apply for the card. But these aren’t as common as they are with personal credit cards.
Perks and bonuses. There are plenty of business credit cards that incentivise frequent spending with cashback or reward points. If you frequently engage in business travel, consider looking for a credit card that offers air miles, provides travel insurance as a perk, or connects you to a membership rewards points scheme with a hotel chain.
Rates and fees. Credit card costs can be pretty fiddly, with the potential for different parts of your card balance to be charged different rates of interest. Look out for each card’s “summary box”, often the quickest way to cut through the marketing spiel, and check for any “hidden” fees that are applicable to you. For example, if you do travel a lot, be sure to check how much each card charges in foreign transaction fees.
Be aware that neither business credit cards nor business charge cards offer purchase protection under Section 75 of the Consumer Credit Act. This only applies to personal credit cards, not business cards.”
What is a business charge card?
Charge cards are payment cards that work similarly to credit cards. Here are the key differences:
Annual fees can be higher than most credit cards. Charge cards tend to have higher annual fees to equate for their high credit limits and boastful rewards.
No revolving credit. Unlike a credit card, you can’t carry a balance from one month to the next. You must pay off your balance in full each month.
No interest. Since you can’t carry a balance, you won’t accrue any interest.
No or high preset spending limits. Ideal if you want a business card with a high spending limit; but this doesn’t mean unlimited spending. Your purchasing power constantly adjusts based on your payment history and other factors.
Lucrative rewards schemes. Charge cards tend to come with generous welcome bonuses and rewards schemes to match their high annual fees. But as with any form of credit, you should only spend as much as you can afford to pay back (especially as you need to repay your balance in full with this type of card) and try not to chase points.
With a charge card, you must settle the full account balance at the end of the statement period. Interest rates don’t apply to charge cards as there is no revolving credit, but hefty late fees are often applied if you don’t pay off your balance by the due date.
Credit card cost comparison
Credit card limit: £30,000
Outstanding balance: £8,000
Interest rate: 24%
Monthly repayment: £500
Total interest: £1,529
Credit card limit: £30,000
Outstanding balance: £8,000
Interest rate: 36%
Monthly repayment: £500
Total interest: £2,471
Bottom line
If you’re considering applying for a high limit credit card for your business, bear in mind you’ll almost certainly need a fantastic business credit score and a stellar financial history. If your business doesn’t have this, you could apply for a credit card with a smaller limit, and build your credit history by making your repayments on this card on time.
If you’re still not sure which credit card would be best for your business, compare your options and check out other business credit cards until you find the right one.
Frequently asked questions
Potentially. It depends on how bad your business credit score is, and how much you’re hoping to borrow. There are lenders who specialise in offering loans and credit cards to businesses with bad credit.
However, these deals tend to have higher interest rates, low credit limits and stricter terms.
Possibly. Some lenders will check your personal credit score as well as your business credit score when assessing your application. This is particularly common if you have a new business with a short financial history.
There are some circumstances in which your personal credit score could be affected by your business transactions. This most commonly happens when you fall behind on loan repayments and the lender takes legal action to retrieve the money owed. Check out our guide to find out more.
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To make sure you get accurate and helpful information, this guide has been reviewed by Rachel Wait, a member of Finder's Editorial Review Board.
Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio
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Chris has written 612 Finder guides across topics including:
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