Business Rewards Credit Card Overview

Wringing out extra value from every pound is a must when you’re running your own business, and rewards credit cards are a great way to do this. A good rewards programme can see you earn benefits from simply paying your expenses, making every penny work harder. 

Credit cards are firmly entrenched in our spending habits, both in business and in our private lives. Daily credit card transactions in the UK reached an average of 11.2 million in early 2024 and while many will earn you nothing more than interest to repay, others come with some useful extra perks.

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What are business rewards credit cards?

Business rewards credit cards are business credit cards designed to help companies streamline spending while earning rewards on everyday purchases. They let you:

• Separate spending: When all business transactions are made on a dedicated card, it creates an itemised record of expenses. This helps you quickly identify where and how your business funds are being spent, avoiding the confusion that arises when personal purchases mix with professional ones.
• Get perks: Receive cashback, travel points, or discounts on essentials.
• Add-ons: Many cards include expense tracking, employee cards, and more.

Top benefits of business rewards credit cards

The marketplace for business rewards credit cards is always evolving, but you can generally categorise the cards on the market into three types. 

1. Cashback rewards: some text
   • You get cashback on essential purchases such as fuel, office supplies, and utilities.
     
     
2. Points-Based Rewardssome text
   • Accumulate points for travel, dining, and technology purchases.
   • Use points for flights, hotels, or vouchers for popular retailers.
     
     
3. Business-Specific Perkssome text
   • Access expense management tools to track and categorise business spending.
   • Employee cards with customisable spending limits.
   • Partnerships offer discounts on essential business services like cloud software.

What to Look for in a Business Rewards Credit Card

SMEs in the UK are spoilt for choice when it comes to credit cards, but the wide array on offer also means the credit card landscape can be confusing to navigate.

There are four considerations you can use to assess the merits of each credit card: 

1. Rewards structure

Perks aren’t perks if they’re not going to be genuinely useful. So, think about whether cashback, points, or miles align better with your business's spending habits. 

Cashback is ideal for businesses with consistent, high-volume expenses on everyday essentials like office supplies, utilities, or fuel. Cashback directly offsets costs, making it perfect for those prioritising cash savings over other benefits.

Points-based rewards work for businesses with varied spending, particularly on dining, technology, or travel. Points offer flexibility—they can be redeemed for flights, hotel stays, or even gift cards, adding value in areas beyond operational costs.

Miles and travel rewards are best for businesses with frequent travel needs, such as client visits or international operations. Earn miles for flights, upgrades, or lounge access, reducing travel expenses while enhancing convenience and comfort.

Once you know what you’re after, look for high reward rates in your primary spending categories.

2. Costs and APR

APR (Annual Percentage Rate) is a standardised way to measure the cost of borrowing money over a year, expressed as a percentage. It’s the total cost of a credit product, not just the interest rate. It also includes any fees associated with the borrowing.

Annual fees, foreign transaction charges, and late payment penalties can quickly eat into your rewards if they don’t align with your spending habits. Cards with no annual fees are particularly appealing to SMEs, as they let you enjoy benefits without the added expense.

Interest rates for credit cards can be on the high end. So if you’re not going to repay the balance every month in full, it’s an important component of your choice. UK businesses currently face an average credit card interest rate of 23.9%, the highest on record.

3. Flexibility

Evaluate the redemption options for rewards—are they easily transferable to a travel programme or redeemable as cash, for example.

4. Additional perks

Some cards offer extras like travel insurance, airport lounge access, or fraud protection. If these extras align with your business needs, they can provide added value.

Top business rewards credit cards in the UK

1. Best travel rewards business credit card

American Express Business Gold Card

• Key benefits: Earn 1 point per £1 spent, double points on travel.
• Why it’s good: Perfect for businesses with frequent travel needs. Includes perks like airport lounge access and comprehensive travel insurance.
• Fees: £0 annual fee for the first year, £125 thereafter.

2. Best for cashback

Capital on Tap Business Credit Card

• Key benefits: Up to 2% cashback on all purchases.
• Why it’s good: Simple, high cashback rates with no restrictions or tiers.
• Fees: £99 annual fee.

3. Best for no annual fees

Barclaycard Select Cashback Credit Card

• Key benefits: 1% cashback on all purchases, rising to 1.25% for high spenders.
• Why it’s good: Rewards without the cost—great for startups.
• Fees: £0 annual fee.

4. Best Business Rewards Credit Card UK

Santander Business Cashback Credit Card

• Key Benefits: 1% cashback on essential categories like fuel and travel.
• Why it’s good: Straightforward rewards for businesses with a focus on travel or logistics.
• Fees: £30 annual fee.

How to Choose the Right Card for Your Business

1. Align rewards with your spending habits: If you spend heavily on office supplies, a cashback card is likely the most valuable. For frequent business trips, opt for a card focused on travel perks.
2. Assess caps and limits: Some cards impose caps on earning potential or require a minimum spend—ensure the card fits your spending patterns.
3. Consider flexibility: Check how easily points can be transferred to travel programmes or converted into cash.
4. Spending limit: Think about the purchases you’re planning to make on your business credit card. If you plan to put big-ticket items on there, a higher limit is better. If it’s more for day-to-day expenses, this matters less. 

Alternatives to business credit cards

Credit cards are just one element of a business's financial toolkit. For companies needing additional capital, iwoca offers a flexible financing option.

An iwoca Flexi-Loan is not like a traditional loan. It’s like a combination of a credit card and a loan facility. 

• When you’re approved for a Flexi-Loan, we’ll give you a credit limit. You can then transfer money from the loan to your bank account as you need it. You’re only charged interest on the amount you actually draw down and you can repay at any time with no extra charges. 
• Our simple application and quick decisions mean you can get the funding you need when you need it. On most occasions, we can approve your application within 24 hours. iwoca is also more adaptable with less rigid criteria than traditional lenders. 
• You can also repay early to save on interest, top up your loan for new projects, and even increase your credit limit as you make regular repayments. This makes a Flexi-Loan ideal for growing businesses that need ongoing, adaptable financing.

Working in tandem: iwoca + business credit cards

Choosing the right business rewards credit card can transform everyday business expenses into meaningful rewards, whether through cashback, travel perks, or other incentives. For small businesses, careful selection ensures that every pound spent delivers maximum value.

If you're seeking to balance your financing needs, consider iwoca's flexible funding solutions as a complement to your credit card strategy. Together, these tools can help drive your business growth while optimising financial efficiency.

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FAQ: business rewards credit cards for UK SMEs

Why should I consider a business rewards credit card?

Business rewards credit cards are a smart way to make every expense work harder. By separating personal and business transactions, they simplify accounting and help track spending. Plus, they offer perks like cashback, travel rewards, and expense management tools that can reduce costs or streamline operations. For SMEs in the UK, this means transforming routine spending into meaningful benefits while maintaining better financial oversight.

What types of rewards can I earn with a business credit card?

Rewards typically fall into three categories:

• Cashback rewards: Ideal for consistent purchases like fuel, utilities, and office supplies, offering direct savings.
• Points-based rewards: Perfect for varied spending, these points can be redeemed for flights, hotel stays, or gift cards, adding value across different categories.
• Travel perks: For businesses with frequent travel needs, these cards provide benefits like miles, lounge access, and travel insurance, offsetting costs and enhancing convenience.

Are there alternatives to business rewards credit cards?

Yes. If your business requires additional capital then consider flexible financing like an iwoca's Flexi-Loan. The Flexi-Loan lets you draw down funds as needed, with interest only on the amount used, and early repayment without penalties. This option works well alongside business credit cards, offering adaptable financial support for growth or unexpected expenses.

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