Business credit cards can play a crucial role for business owners, helping with cash flow management, expense tracking and acquiring key assets. They also offer various rewards and enable companies to build their credit ratings, boosting chances of getting approved for loans and other finance agreements.
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Business credit cards can play a crucial role for business owners, helping with cash flow management, expense tracking and acquiring key assets. They also offer various rewards and enable companies to build their credit ratings, boosting chances of getting approved for loans and other finance agreements.
In this article we look at the key features and benefits of the best credit cards available for business owners in the UK and what to consider before applying.
With many providers in the market, you need to judge each card’s suitability for your business needs and financial position. Also, your company type and size and where you operate may influence the business credit card you choose.
We’ve outlined some of the best credit cards for small business owners, exploring the main card features/benefits, interest rates, credit limits and eligibility conditions.
Capital on Tap’s credit cards for business owners are specifically designed to give small businesses easy access to credit and offer 1% cashback on all spending, a high maximum credit limit and handy accounting software integrations.
To get credit from Capital on Tap, you must be a private limited company or limited liability partnership (LLP). Some benefits require Pro, costing £299 annually with higher interest rates.
NatWest offers a well-rounded business credit card, balancing handy and sustainable rewards, affordable fees and free expense management tools and insights.
You must be an existing NatWest business account holder with an annual turnover under £2 million.
Barclaycard Select Cashback Credit Card offers accounting and spend management tools for small businesses, alongside an uncapped cashback scheme and other perks.
The interest rate is relatively high, while non-sterling transactions incur a 3% fee. Eligible businesses need a turnover between £10,000 and £6,500,000 per year.
Santander Business Cashback Credit Card provides SMEs with simple tools for managing spending, cost-savings on cross-border transactions and cashback on purchases.
You can be a sole trader, partnership, LLP or Ltd, with no more than two partners, members or directors, but you must be an existing Santander account holder.
Metro Bank Business Credit Card is a simple and cost-effective option for small businesses looking to manage everyday expenses without incurring large fees.
Metro Bank’s credit card for business owners is a no-frills option with low interest rates and fees but without notable perks or rewards schemes. You’ll need a Metro Bank business account to apply.
Flexible repayment terms, merchant rewards, card spending controls and low rates make the Lloyds Business Credit Card an attractive option for small businesses.
You must have a Lloyds Bank Business Current Account and a guarantee may be required for limited companies and LLPs. Non-sterling transactions incur a 2.95% fee.
American Express is well-known for its rewards schemes. The Amex Business Gold Card offers points for various purchases which go towards things like flights, hotels and more, or can be redeemed through PayPal.
Amex Business Gold Card is a charge card, not a credit card, so your monthly credit balance must be repaid in full.
Funding Circle’s Cashback Card is a quick and easy option to secure business credit and the card syncs with popular accounting software, offers up to 2% cashback and unlocks higher credit limits than many high street banks.
The APR is on the high side, and eligibility rules require you to be a limited company trading for at least two years, with an annual turnover of at least £40,000.
While most credit cards for business owners have features that help companies of all kinds, some offer benefits and rewards tailored to specific sectors.
For example, the American Express Business Platinum Card is a great option for hospitality and travel businesses, offering extensive travel perks like air miles, airport lounge access and travel insurance. There’s also a British Airways American Express Accelerating Business Card. Metro Bank and digital banks like Revolut and Monzo are also suitable for these sectors, with no fees for using the card in Europe and low-cost transactions outside the EU.
Chase, Capital One and Amex have credit cards well-suited to retail and ecommerce – Amex even has an Amazon Business American Express Card – while Soldo is a solution well-matched with manufacturing, due to its automated tools for tracking and managing expenses.
A perceived challenge in building credit is having the required rating to secure financial products. Start-ups often don’t have long financial track records.
Luckily, various providers have credit cards for small business owners with fair credit. Many offer pre-application eligibility checkers and soft searches that don’t impact credit scores and offer instant approvals for businesses with fair credit ratings. However, you may need to provide a personal guarantee as security to protect the lender.
Capital on Tap, Barclaycard Select Cashback Credit Card, NatWest Business Credit Card and HSBC’s Commercial Card are all good options, while Funding Circle guarantees applications won’t impact credit scores.
These business credit cards help you build a healthy credit history – so long as you ensure prompt repayments and keep your credit utilisation ratio low.
Learn more about how to improve your credit score as a start-up [link to recent blog].
Whatever your industry or financial position, business owners need to know what credit fees to expect and how to get the most value from card rewards, as the fees can eat into your profits and negate the benefits.
While credit cards help businesses cover operational expenses and earn rewards, there are certain drawbacks, such as credit limits, (often) rigid repayment terms and lengthy application processes.
For these reasons, many growing businesses seek finance from business finance providers and alternative lending solutions, offering quick and easy funding solutions, tailored to business needs. Options include:
iwoca is a leading provider of flexible loans for small businesses, helping UK business owners and entrepreneurs realise their growth ambitions.
Our popular solution, Flexi-Loan, is a short-term funding solution that allows SMEs to get the capital they need with manageable repayment terms, especially when business credit card limits aren’t sufficient. Benefits include:
You can borrow between £1,000-£1,000,000 (from a day to 60 months), with tailored repayment plans and no charges for early repayment. You could be approved the same day and receive funds in a matter of hours, plus you only pay interest on the funds you draw down and use.
Try our business loan calculator to see your likely monthly repayments for the amount and loan length you need.
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Business credit cards offer a revolving credit line, often with cashback and other rewards, to help companies cover expenses, large purchases and bills. You can pay off credit balances in full or monthly instalments.
You can apply online for a business credit card and you’ll be asked to submit key business details (including your registered number and contact details) and various financial and personal information, including credit history (which will be assessed).
Business credit cards help companies build credit, ease cash flow and manage operations. They also enable business owners to separate personal and business expenses, control employee spending and enjoy various perks and rewards schemes.
Yes, Some credit card providers offer options for businesses with bad or fair credit scores. However, due to the increased lender risk, you may be offered lower credit limits, higher interest rates and fewer rewards, and asked to provide a personal guarantee.
While business credit is separate from personal credit your business credit card can still impact your personal credit score. If you’ve given a personal guarantee, poor debt management and late payments can affect your personal score. Plus, some card providers conduct hard credit inquiries during their approval process.
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