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.
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.
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.
If you’re in the market for a high limit business credit card, you should compare the following features:
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.”
Charge cards are payment cards that work similarly to credit cards. Here are the key differences:
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.
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.
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With its competitive interest-free period and purchases rate, this credit card can give your business’ finances the breathing space they need.
With a decent interest rate on purchases and a nice interest-free period, this card can help you manage your business’s irregular cash flow.
Designed for small and medium businesses looking for payment flexibility, this card goes the extra mile with an attractive 1% cashback on all purchases.
Reserved for Lloyds Business customers, this straightforward credit card comes with a competitive interest rate that can help you improve your cash flow.
Allied Irish Bank (GB) offers a select range of business cards offering simplicity or perks.