Credit cards for business expenses

Looking for a credit card to cover your everyday business expenses? Here’s what you need to know.

Using a business expense card can be a convenient way to manage company or employee expenses. But how exactly do they work and how do you choose the right one for your company?

What is a business expense card?

A business expense card is a type of business credit card that enables employees to cover costs incurred while they carry out their jobs. This could include travel costs, hotel accommodation or marketing expenses, for example.

Businesses can usually issue a business expense card to anyone who needs one and then manage them from a central account. Companies can usually set different spending limits for their employees, depending on the type of role they are in and the type of expenses they might need to pay for.

How to choose your business expense card

As with any type of credit card, the best way to choose the right business expense card is to shop around using a comparison service and compare your options.

Consider which factors are the most important to you when weighing up which card to choose. For example, if you travel regularly, you might want to look for a card that offers low or no fees for foreign transactions. Or if you regularly need to pay for expensive items, look for a card with a higher credit limit and lower interest rate.

Name Product Purchases Annual/monthly fees Rewards earn rate Representative APR Link Key benefit Representative example
Finder Award
CASHBACK
Capital on Tap Business Credit Card
26.4%
£0
1 point per £1 spent
29.9% APR (variable)
Go to site
Earn 1% cashback for every £1 spent. Upgrade to Capital on Tap Business Rewards Card for £99 pa to choose between earning cashback or Avios and receive 10,000 bonus points when you spend £5,000 on your card in your first 3 months.
Representative example: When you spend £1,200 at a purchase rate of 26.4% (variable) p.a., your representative rate is 29.9% APR (variable).
Finder Award
CASHBACK
Capital on Tap Business Rewards Credit Card
26.4%
£99 p.a.
1 point per £1 spent
29.9% APR (variable)
Go to site
Earn 1 point for every £1 spent. 1 points can be redeemed for either 1 Avios or 1p in cashback. 10,000 bonus points when £5,000 spent in first 3 months. Up to 20 free supplementary cards available.
Representative example: When you spend £1,200 at a purchase rate of 26.4% (variable) p.a., your representative rate is 29.9% APR (variable).
CASHBACK
Barclaycard Business Select Cashback Credit Card
21.9%
£0
2% cashback
21.9% APR (variable)
Go to site
Earn 2% cashback on all spend for the first 3 months. T&Cs apply
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a., your representative rate is 21.9% APR (variable).
Barclaycard Business Premium Plus Credit Card
0% for 6 months reverting to 14.9%
£150 per annum
0.5% cashback
49.4% APR (variable)
Go to site
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 14.9% (variable) p.a. with a fee of £150 per annum, your representative rate is 49.4% APR (variable).
loading

Compare up to 4 providers

Benefits of business expense cards

There are a number of benefits when it comes to using a business expense card. These include the following:

  • Increased efficiency. Rather than worrying about employee expense claims or petty cash, a business credit card can be issued to a number of different employees, and all accounts can be viewed on a single online dashboard. This means you’ll have a clear idea of what is being spent where.
  • Multiple users. You can issue expense cards as and when required, and companies can usually set different spending limits for different employees depending on their role.
  • Connect to accounting software. You may be able to connect your business credit card to track all purchases in your accounting software, including capturing images of business receipts.
  • Separate personal and business expenses. Keeping personal and business accounts separate makes it easier to track expenses and stay on top of your finances. It will also help your business to build a credit score, which can be useful if you need to apply for credit again in the future.
  • Rewards and cashback. Some business cards come with rewards and cashback features, enabling you to earn something back as you spend.

Drawbacks of business expense cards

As with any financial product, there are also a number of drawbacks to be aware of. For a start, some business expense cards can be costly. You may be charged an annual fee, and if you don’t clear the balance in full each month, interest charges can be high. Further fees could be charged if you don’t make your payments on time or if you exceed your credit limit.

What’s more, a credit check will need to be carried out before you can qualify for a business credit card. If your credit score is poor, you may be turned away.

Prepaid business cards

As well as using a business credit card, you can also choose from prepaid business expense cards. Prepaid business cards are paid for by the employer and can be topped up whenever needed. This also means that the employee can only ever spend what’s on the card, making them a good option for budgeting.

Further benefits of prepaid business cards include that they can often be integrated with accounting software and no credit checks need to be carried out on either the employer or the employee.

The downside is that there may be monthly fees or fees for certain transactions such as making purchases or cash withdrawals. In most cases, they won’t help you to build up a business credit score either.

Business expense card providers in the UK

Some of the business expense card providers in the UK include the following:

Alternative options

If you don’t want to use a business credit card or a prepaid card for your business expenses, you could consider a business charge card instead. Charge cards offer short-term interest-free funding, and while they work in a similar way to a credit card, they tend to offer higher spending limits. You must also repay the balance in full each month – there is no option to carry it over into the following month. Charge cards can be given to employees to pay for work expenses, and again, different spending limits can often be applied to different employees.

The other main option for companies is to ask employees to pay for expenses themselves, which the company will then reimburse. However, this involves a lot of admin, including the collection of receipts and claims forms, and can be extremely time-consuming.

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

  • Top ethical credit cards

    Learn more about how ethical credit cards work and whether they are right for you.

  • Halo COVID testing review

    Our review of Halo’s COVID tests for travel includes prices, pros, cons and user reviews.

  • Junior SIPPs

    The guide discuses the pros and cons of junior SIPPs, and why kick-starting your child’s pension early can reap substantial rewards.

  • What is day trading?

    We examine the pros and cons, and who day trading is (and often isn’t) right for.

  • How does retiring or moving abroad affect my pension?

    In this guide we explain everything you need to know about how retiring abroad affects your state pension and private pensions.

  • Workplace pensions

    Tax relief and employer contributions mean that saving into a workplace pension is an invaluable way to bolster your retirement income.

  • Crypto.com review

    Learn more about the Crypto.com platform in our complete review.

  • COVID-19 tests for travel to the US from the UK

    Learn what you need to know about taking a trip to the US during the coronavirus pandemic, including who’s permitted to travel there and what COVID-19 tests you need to take to visit the US.

  • Pension auto enrolment

    Find out what you need to know about your auto enrolment into your workplace pension scheme.

  • How to consolidate pensions

    Moving multiple pensions into one scheme could cut costs and save time. We explain the pros and cons of consolidating your pension.

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site