Secured business credit cards

Unfortunately you can't usually get a secured business credit card in the UK, so we've put together a list of alternatives.

While fairly common across the pond, lenders don’t usually offer secured credit cards to businesses in the UK.

So, what are your options if your business’s credit score is less than ideal?

What are secured business credit cards anyway?

Secured business credit cards work just like regular credit cards, but require you to put down an initial cash deposit, which will then become your credit limit.

As this takes away pretty much all the risk for lenders, you’re often able to get one even if your business is very new or your credit score isn’t great.

At the same time, using a secured credit card helps you grow your business credit score and lets you earn rewards on your spending.

Alternatives to secured business credit cards

But let’s not dwell too much on what we can’t get. Even though a secured credit card is not an option, there are other types of business finance that could be available to you.

Unsecured business credit cards

This will sound very obvious, but are you sure you can’t get a standard unsecured business credit card? Some lenders may have looser criteria than others and may be willing to accept your application.

Just make sure you check your eligibility before proceeding with a complete application, so that there’s no impact on your credit score. Initially, you might have to settle for a low credit limit and a high interest rate, but if you pay off your bill in full every month, your business credit score will gradually improve and you will become eligible for a more competitive deal.

Our tips to get a business credit card with bad credit

Business line of credit

A business line of credit is the flexible version of a business loan. You can borrow what you need and when you need it up to your credit limit, and you’ll only pay interest on what you actually borrow.

Some lenders offer secured lines of credit, which may be a good solution if you don’t qualify for the unsecured version of it. Unfortunately, unlike with a credit card, you won’t usually benefit from any interest-free days.

What’s a business line of credit and how does it work?

Merchant cash advance

Merchant cash advance could be a good idea for borrowing one-off. It’s quite similar to a business loan, so you get a lump sum from the lender at the very beginning, but instead of paying it back in fixed monthly instalments, you pay it back as a percentage of your card sales. This way, how much you have to pay back depends on how much you actually earn.

You’re charged a flat fee and no interest, so it doesn’t really matter how long it takes you to pay back the loan. As repayments are taken directly from your card terminal (before they even reach your account), your business credit score is less of an issue. Borrowing this way will definitely be more expensive than using a credit card, so you have to weigh the pros and cons carefully.

Compare merchant cash advance providers

Invoice financing

Invoice financing allows you to borrow money using your unpaid invoices as collateral. In practice, the lender advances the money your clients owe you in exchange for a fee, which gives you some financial breathing space and can help with cash flow issues.

Again, as it’s a secured form of finance, your credit score won’t matter as much. However, it is quite expensive, so you should see if you can qualify for a cheaper solution first.

What’s invoice financing and how does it work?

Compare business credit cards

Table: promoted then other popular deals
Name Product Finder score Purchases Annual / Monthly fees Rewards earn rate Representative APR Link Key benefit Representative example
Finder Award
CASHBACK
Capital on Tap Business Credit Card
4.0
★★★★★
35.15%
£0
1 point per £1 spent
35.2% APR (variable)
Go to siteCard details
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).
Barclaycard Payments Select Cashback Business Credit Card
4.0
★★★★★
27.5%
£0
1% cashback uncapped*
27.5% APR (variable)
Go to siteCard details
*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).
Finder Award
CASHBACK
Capital on Tap Business Credit Card (+optional Business Rewards)
4.0
★★★★★
35.15%
£99 per annum
1 point per £1 spent
35.15% APR (variable)
Go to siteCard details
Representative example: When you spend £1,200 at a purchase rate of 35.15% (variable) p.a., your representative rate is 35.15% APR (variable). Optional upgrade to Business Rewards (£99 per year).
Barclaycard Select Charge Card
3.5
★★★★★
N/A (this product is a charge card).
£42 per annum
N/A
3.6% APR (variable)
Go to siteCard details
Access exclusive offers through Barclaycard business rewards. Including, but not limited to, exclusive pre-sale tickets plus discounts on hotel bookings, dining out and car hire. Terms apply.
British Airways American Express® Accelerating Business Card
4.0
★★★★★
28.5%
£250 per annum
1.5 points per £1 spent
108.4% APR (variable)
Go to siteCard details
Earn 1.5 Avios for every eligible £1 spent on purchases. Plus, for every £20,000 spent on the card, receive another 10,000 bonus Avios points, up to 3 times per year. Terms apply.
Representative example: When you spend £1,200 at a purchase rate of 28.5% (variable) p.a. with a fee of £250 per annum, your representative rate is 108.4% APR (variable).
American Express Business Gold Card
4.0
★★★★★
N/A (this product is a charge card).
Year 1 - £0, Year 2 onwards - £195
1 point per £1 spent
N/A (this product is a charge card).
Go to siteCard details
Earn 20,000 bonus Membership Rewards® points when you spend £3,000 in the first 3 months. Terms apply.
American Express Business Platinum Card
3.5
★★★★★
N/A (this product is a charge card).
£650
1 point per £1 spent
N/A (this product is a charge card).
Go to siteCard details
Earn 40,000 bonus Membership Rewards® points when you spend £6,000 in the first 3 months. Terms apply.
Barclaycard Premium Plus Business Credit Card Mastercard
4.0
★★★★★
0% for 6 months reverting to 20.2%
£150 per annum
0.5% cashback
56.8% APR (variable)
Go to siteCard details
2 complimentary airport lounge passes annually, worldwide travel cover, discounted forex rates plus 0.5% cashback on eligible spend with a cap of 400 per year. T&Cs apply.
Representative example: When you spend £1,200 at a purchase rate of 20.2% (variable) p.a. with a fee of £150 per annum, your representative rate is 56.8% APR (variable).
CASHBACK
Funding Circle FlexiPay Business Credit Card
4.0
★★★★★
Flat fee per transaction
£0
1.25% cashback
33.4% APR (variable)
Card details
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.
Moss Business Card
3.5
★★★★★
N/A (this product is a charge card).
Subject to plan
N/A
N/A (this product is a charge card).
Card details
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What about a personal guarantee?

If you’re the owner of a small business, you may be able to get a business credit card even if your business credit score isn’t great (for example, because you’ve only been in business for a few months) by signing a personal guarantee.

With a personal guarantee, you agree to personally take responsibility for any debt accumulated on your business credit card. It isn’t an ideal solution, because if something goes wrong with your business, it will impact your personal finances and your personal credit score.

On the other hand, it may be cheaper than other forms of business finance and can allow you to build up your business credit score. You can always switch to a business credit card with no personal guarantee later on.

Compare business credit cards that don’t require a personal guarantee

Frequently asked questions

Finder survey: What aspects of a business credit card matter most to Brits when choosing one?

Response
I would not choose a business credit card33.33%
Don't know20.74%
The APR18.12%
Whether there's a monthly/annual fee17.05%
Provider reputation13.57%
Customer service12.5%
Whether there are perks/points or cashback12.31%
Whether it offers extra tools and support for businesses12.02%
Additional employee cards available7.75%
Other0.1%
Source: Finder survey by Censuswide of Brits, December 2023
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. Most of the data in Finder's comparison tables is provided by Moneyfacts.

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