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Whether you’ve never had a business credit card before or you’re shopping around for a better deal, you’ll need to find the right type of card to suit your start up or growing business. You’ll need to consider how you plan to use your business credit card and be realistic about your business’s financial and credit history to increase the chances of a successful application.
NerdWallet’s pick of the best business credit credit cards
See below for NerdWallet’s pick of the best business credit cards, whether you’re looking for a standard card for everyday use, a card that offers rewards or a card if you travel frequently overseas as part of your business.
Provider | Product | Type of Card | Representative APR | Key Facts | |
|---|---|---|---|---|---|
 | Business Credit Card Mastercard | Everyday | 15.95% | No annual fee for 12 months, then £32 a year per cardholder. Up to 56 days 0% interest period on purchases. | |
 | Business Platinum Card* | Rewards | 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. | |
 | Business Credit Card Mastercard | Foreign use | 15.95% | This card offers foreign functionality, no fees in the first year, 56 days' interest-free period, 1% cashback on fuel and electric vehicle charging and 0.5% on other eligible purchases. |
*American Express Business Platinum Card is a business charge card, so does not have a set credit limit (though limits can still apply) and require full payment at the end of each billing cycle.
Missed or late payments can lead to increased debt and negatively impact your credit rating.
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.
What is a business credit card?
Much like a personal credit card, a business credit card allows you to access borrowing to help manage your short-term cash flow. You could use it to finance big-ticket items, such as office equipment or furniture, or to pay for day-to-day business expenses, such as stationery supplies or business travel.
Business credit cards tend to have higher credit limits than personal credit cards. So if you keep on top of repayments, it could help boost your firm’s credit score, making it easier to apply for other types of credit, such as business loans. However, while they offer a fairly quick source of funding, interest rates may be higher too.
Different types of business credit cards
When you start shopping around for business credit cards for your small business, you’ll find there are fewer options than for personal credit cards. This is because business credit cards offer a more risky proposition for card providers, with businesses being prone to market fluctuations and increases in operational costs.
So card issuers have simplified their offerings to focus on the specific needs of business owners and leaders, whether through providing a specialist rewards package or a good credit limit that can help you manage your short-term cash flow.
The main type of business cards and features for owners and directors of small businesses to consider include the following, and you may find some providers offering more than one option:
Purchase business credit cards
Similar to personal credit cards, these everyday business credit cards can help you manage your day-to-day business expenses. You will typically be offered interest-free periods on business-related purchases – though not for as long as personal credit cards offer. To keep interest rates low, these cards don’t tend to come with the perks that business rewards or travel credit cards offer.
Business credit cards with rewards
As the name suggests, these cards can offer rewards on purchases, such as cashback on a small percentage of your annual business spend, air miles, or even free breakdown cover or accounting software. If you plan to use your card regularly for business expenses, such as office supplies, fuel, hotels and travel, you could find rewards cards a useful tool to help manage your short-term cash flow.
Business credit cards for travel
If your business involves international travel, then you can find business travel cards that offer no or low fees for foreign transactions. If you plan to travel outside Europe, some card providers charge more for worldwide transactions.
Balance transfer business credit cards
If your business has existing debt, you can transfer the debt onto a balance transfer card with a different provider. These can come with 0%interest for an introductory period, making it easier to pay off the outstanding balance more quickly.
Do business charge cards work in the same way?
Some card providers offer competitive rates on business charge cards, which work differently from business credit cards, which have a pre-set credit limit and you must pay at least the minimum required amount each month with the remaining balance rolled over with interest to pay.
In contrast, business charge cards typically have no pre-set limits and must be paid in full at the end of each monthly billing cycle. Charge cards can offer more flexibility in how much you can spend and can come with rewards, but penalties for non-payment will be higher and you usually need a good business credit score to apply for one.
» MORE: How business charge cards differ from credit cards
Choose the best business credit card for you
Before you apply for a business credit card, do your research to check which type of card best suits your needs and the likelihood of your application being accepted.
- Check personal and business credit scores: Card issuers will use credit reference agencies to check your credit score and may review both your personal credit score and business credit score. So it is important to check them before you apply. While personal credit scores can be accessed for free through the main credit reference agencies – Equifax, Experian and TransUnion or through platforms such as ClearScore and Credit Karma, you will generally need to subscribe to a business credit reference agency – Equifax and Experian provide business credit scores too, for example – though you may find free trials.
- Choose the best type of card for your business: Ask yourself how you plan to use a business credit card. Are you looking for a purchase card to use for everyday business expenses with a 0% interest introductory offer or are you attracted to the perks a rewards card can offer? Perhaps your work takes you overseas where low foreign transaction costs will be important to you? And if you already have a business credit card but would like to pay off the interest more quickly, then a 0% balance transfer card may fit the bill.
- Check your eligibility: You will need to be a company director aged 18 and over and reside in the UK. Limited liability partnerships or companies must be registered at Companies House. Review any specific criteria, such as whether you need to have a business bank account, whether the lender will accept all types of business structure and whether there are any minimum turnover or revenue requirements. Checking these basics first could reduce the chances of an unsuccessful application. Remember that submitting many applications within a short period of time could harm your credit score.
How to apply for a business credit card in the UK
Once you’ve found a business credit card that fits the bill for your business, you’ll need to take the following steps to have the best chances of a successful application.
1. Before applying, check the eligibility criteria, which can usually be found on the card provider’s website, though you can sometimes apply for a business credit card over the phone or at a branch. If you are applying to a bank, you may need to open a business bank account before you can apply for a business credit card.
2. You will need to provide information about your business’s finances and trading history, including:
- whether you are a sole trader or are running a limited company or partnership
- proof that you have been trading for a certain period – for example, over a year.
- proof of annual turnover – you may need a minimum turnover before you can apply
3. Collect all the documents you’ll need before you start your online application with your chosen card provider. If you’re applying for a card from a high street bank, you can also apply in person. Paperwork you’ll need includes:
- proof of your registered business name, address, contact details, and registration number if registered at Companies House
- proof of your position in the company – you will need to be a director or a majority shareholder to apply.
- ID documents (passport, driving licence) and proof that you and your business are based in the UK
- your credit history: information about any current business loans, overdrafts or other outstanding debts
4. Wait for approval while the card issuer carries out its credit checks, which could be a few minutes up to a few weeks. Once you are happy with the offer, you can sign up and usually expect your card to arrive within a few days to a couple of weeks.
Business Credit Cards UK Frequently Asked Questions
Yes, self-employed workers, freelancers and sole traders can use business credit cards, but eligibility criteria may be stricter. Some providers don’t offer cards to sole traders or start ups, preferring to lend to businesses with a strong credit history.
Many lenders will expect you to have a business bank account when you apply for a business credit card. Some banks will automatically offer you a business credit card as soon as you’ve opened your business bank account.
It is not a legal requirement for sole traders to have a separate business bank account, but, as with business credit cards, separating your business and personal expenses will make your admin life easier – whether you’re filing your self-assessment tax return or managing your cash flow.
Many card providers will require you to make a personal guarantee, and this will be the case if your business doesn’t have a strong credit history. It is not a decision to be taken lightly because it could have an impact on your future financial wellbeing. It means you will be personally liable to pay off the loan from your own assets, such as savings, investments, or even your home, if your business fails to make repayments or becomes insolvent.
The Annual Percentage Rate, or APR, refers to the annual cost of borrowing money, including the interest rate and standard fees over a year. By expressing it as a percentage, it makes it easier for borrowers to compare credit cards, loans and other forms of credit. If your credit score is good you will be more likely to be offered a business credit card with a lower APR.
When a credit card is advertised with a representative APR, it is there to help borrowers compare products. It means that 51% of customers receive a rate that matches or is lower than the representative APR. If your application is successful, the card issuer will provide you with a personalised quote for APR, based on your business’s financial circumstances, that may be lower or higher, or match the rate it has promoted.
Depending on how long your business has been running and its finances, lenders may ask for a personal credit check. This will certainly be the case if you are asked to provide a personal guarantee.
Business credit cards are not covered by Section 75 of the Consumer Act, which offers some protection to consumers if items are lost, stolen or damaged. To mitigate against this risk, some providers offer insurance to cover fraudulent use and protection for items you’ve bought with your business credit card.
Yes, for example, you could have one that offers low transaction fees when you are on a business trip overseas and another card to benefit from cashback or rewards points on your daily business spending. Before applying for a first or additional card, review your business finances to make sure you can afford the monthly repayments. While repaying additional credit card debt on time could help improve your credit score, if your business is already struggling, using a new card to boost your credit limits could backfire, with the potential for missed payments and spiralling debt.
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