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- What is a rewards business credit card?
- What are cashback credit cards for business?
- How do rewards business credit cards work?
- What is a rewards business charge card?
- The best business rewards credit cards
- Advantages of business rewards credit cards
- Disadvantages of business rewards credit cards
- How to choose between business rewards credit cards
- How do I apply for a business rewards credit card?
Business credit cards with rewards can be a great way to help your business get more bang for its buck. The most common rewards come in the form of cashback or points to spend on future purchases.
If you don’t already use a credit card for your business spending, it may be time to consider the advantages of doing so, especially if you know that you can be rewarded for all your spending too.
Read on to learn more about how rewards business credit cards work and how they can help you manage your business finances.
What is a rewards business credit card?
Generally speaking, most business credit cards work in much the same way as personal credit cards.
Rewards business credit cards are just another type of credit card you can use for your business spending. They do exactly as they say: give you rewards – typically cashback or points – for spending.
What are cashback credit cards for business?
Some business credit cards offer rewards in the form of cashback, which allows you to earn back a small, pre-agreed percentage of spending on your credit card.
For example, if you take out a business credit card which offers 1% cashback on all purchases, and then you spend £100, you’ll receive £1 back.
In time, and if you make a lot of large purchases on your business credit card, cashback rewards can add up and become a valuable perk.
How do rewards business credit cards work?
Some types of rewards credit cards or charge cards allow you to earn reward points – rather than cashback – as an incentive to spend money on your card. American Express is a well-known example.
These providers can sometimes also offer a bulk load of rewards points when you sign up for a new card and spend a certain amount within a qualifying period.
On top of these introductory rewards, you will then earn regular rewards points as you spend – sometimes with additional bonus rewards for spending a certain amount each month.
You may also get additional reward points for spending at retailers connected to your business credit card provider.
Once you’ve collected enough rewards points, you can redeem them in various ways – the specifics of which will depend on your business credit card and your lender or provider.
As an example, you may be able to use reward points to cover the cost of purchases, either by paying directly with points at the checkout or by redeeming points against a transaction for a credit on your next statement.
It may also be possible to convert your business card rewards points into loyalty points with other participating companies.
American Express Membership Rewards points, for example, can be converted into British Airways Avios points, Emirates Skywards points, Delta SkyMiles and other airline loyalty points.
These airline points can then be used to book free flights or to get discounts towards the cost of flights and hotel stays.
In addition to rewards points, rewards business credit cards may come with other perks, credits, or discounts, including with partner organisations.
The drawback is that rewards credit cards generally come with an annual fee and may have stricter eligibility and credit score requirements than other kinds of credit cards.
What is a rewards business charge card?
In many respects, a reward charge card works in the same way as a rewards credit card. There are just a few key differences to be aware of.
A rewards charge card does not have a pre-set credit limit, while a rewards credit card does.
Instead, with a charge card your credit limit will change according to how you use your card.
With a charge card, you will also have to pay the entirety of your card balance every month to avoid being slapped with a late fee, although this does mean you won’t ever be charged interest on an outstanding balance.
The best business rewards credit cards
There are a number of rewards business cards on the market, offering different benefits for different kinds of business spending.
The best business card for rewards will depend, in part, on your business spending habits and what kind of reward you value the most.
If you’re looking for a card which lets you accrue rewards points as you spend, try to weigh up the benefits of your likely rewards points earnings with the cost of the card’s annual fee.
And if you’d rather a cashback card, shop around to see which lenders or card providers offer the best percentages on the widest range of qualifying purchases. Again, you may need to weigh up this benefit with the potential cost of an annual fee to use the card.
If you’re looking for a card which lets you spend abroad without fees, then you may also want to take this into consideration when comparing rewards business credit cards.
See the cards listed below for the top five business credit cards for rewards, ranked by the value of the reward. The cards listed below are ranked according to the value of rewards that cardholders can get in the first year of holding the card. This is calculated by Fairer Finance taking into account the value of rewards earned on £24,000 of spending (including any introductory offers) and the annual fee in the first year. It is worth noting that some card providers have introductory offers that end during the first year or waive their fee in the first year, so do check what the annual fee and rewards will be after the first year before you sign up.
Provider | Product | Representative APR | Rewards | Reward value in first year after fee | |
|---|---|---|---|---|---|
 | Business Platinum Card* | n/a | Earn 2 Reward Points for every £1 spent with American Express Travel and 1 Reward Point for every £1 spent on purchases. Earn 50,000 Reward Points if you spend £6,000 in the first three months of card membership. Unlimited airport lounge access for the cardholder and guests across over 500 airports, worldwide travel insurance cover for up to 120 days, purchase protection from theft or damage up to £2,500. | £805 | |
 | Business Cashback Card* | n/a | 2% cashback on all card spending | £480 | |
 | Pro Credit Card | 35.15% | 1% cashback or Avios points. £100 cashback or 10,000 Avios points if you spend £5,000 in the first three months. Airport lounge access, two free guest passes for lounges and access to Radisson rewards. | £438 | |
| | Amazon Business Prime Amex Card | 39.30% | 2% Amazon Rewards when spending at Amazon up to £120,000 per year, 1% after £120,000 and 0.5% elsewhere. £100 amazon voucher and no fee for first year and subsequent years if you spend £8,000 or more annually on purchases. | £400 | |
 | Business Cashback Card | n/a | Earn 2% cashback on all spending for the first six months up to £2,000. Then 1% afterwards, uncapped | £360 |
*Both the Moss Business Cashback Card and American Express Business Platinum Card are charge cards, so do not have a set credit limit (though limits can still apply) and require full payment at the end of each billing cycle.
**The £480 reward value for Moss is an estimate based on typical spending with a business card. Moss does not publicly provide the fee details of its add-ons. This figure is based on its free starter plan.
This table is checked and updated regularly. We aim to provide accurate information but prices, terms and conditions of products and offers can change, so double-check first. Business credit card data is provided by Fairer Finance.
Missed or late payments can lead to increased debt and negatively impact your credit rating.
Advantages of business rewards credit cards
Rewards for your regular business spending
For some businesses, rewards business credit cards can offer good value for money – particularly if you can start earning rewards points or cashback for purchases you would have made anyway.
Just remember to weigh up this potential benefit with the cost of a card’s annual fee. The benefits of using a rewards business credit card are also likely to depend on the specific circumstances of your business.
Help with cash flow
Using a business credit card – whether it comes with rewards or not – can help with cash flow by allowing your business to spread the cost of larger purchases.
Even if you get a less flexible business charge card, rather than a business credit card, you’ll be able to spread the cost of your business purchases over the duration of a statement period, rather than having to pay on the day.
Perks and bonuses
Business rewards credit cards may come with a range of additional benefits, freebies, bonuses or perks besides the obvious ability to collect reward points or earn cashback.
Some business credit card providers, for example, offer airport lounge access or discounts with partner organisations for business owners with a rewards credit card.
Boost your business credit score
Using a business credit card or charge card responsibly and paying off the balance in full every month is likely to boost your business credit score and signal that your business is a reliable borrower.
Having a strong business credit score may make it easier to access business finance on more favourable terms in the future, as lenders will look at this before making a decision on whether they can trust your business to repay its debts.
Separate your finances
Using a business credit card for business spending can help you keep your personal and business finances separate – just like how using a business bank account can put a helpful barrier between your finances.
Clearly demarcating your personal and business finances can help you keep a clear picture of how well your business is doing, and it’s likely to save you a headache when it comes to filing your tax return.
Disadvantages of business rewards credit cards
Annual fees
Rewards business credit cards are likely to come with higher annual fees than other types of business credit cards – some of which may not have fees at all.
Higher interest rates
If you have a rewards business credit card and you don’t pay off the balance in full every month, you’ll have to pay interest on the outstanding balance.
The interest rate you pay on a business credit card is likely to be higher than the interest rate on a personal credit card or on a business loan, which is likely to be the better option for longer-term business borrowing.
Credit score requirements
Lenders will consider your business credit score before offering you any kind of business credit card.
But if your credit score isn’t that good, or if your business hasn’t been trading for long enough to establish a strong score, you may find it harder to be approved for a rewards business credit card or charge card.
Also, bear in mind that if you fail to repay your business credit card in full and on time, this could end up having a negative impact on both your business credit score and your personal credit score.
How to choose between business rewards credit cards
There are a few factors to consider when choosing between business rewards credit cards.
For one thing, you should make sure the rewards will be worth it for your business.
If your business is very small or doesn’t spend very much money, you may not accrue enough rewards points to outweigh the card’s annual fee – and you may miss out on promotions to earn an additional load of points for spending a certain amount each month or during an introductory period.
You should also think about all the other factors you’d normally need to consider when weighing up business credit cards, including the interest rate, whether you can use the card abroad, the annual fee, and the trustworthiness and customer service of the card provider.
How do I apply for a business rewards credit card?
You can apply online, directly on the provider’s website, for a business rewards credit card.
You’ll be asked for some information about your business and your personal finances, the specifics of which are likely to depend on the structure of your business.
In most cases, you should expect to be asked to provide a personal guarantee, which is basically a promise to cover any of the shortfall if your business can’t pay its debts.
Your business credit score will also be a factor in determining whether you’ll be approved for a rewards business credit card.
Be aware that any potential lenders or providers will check your credit score as part of the application process and that these so-called “hard” searches may temporarily harm your credit score.
Try to avoid applying for multiple credit cards in a short period of time if you don’t want your business credit score to suffer.
» MORE: Do I need a credit card?
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