In today’s competitive business world, effectively managing expenses, maintaining cash flow, and building a strong credit profile are essential for any entrepreneur.
A business credit card can be a valuable tool, offering financial flexibility, rewards, and easy expense tracking. However, with many options available in the UK, selecting the right card can be challenging. Factors like credit limits, interest rates, rewards, and perks like purchase protection and travel benefits vary across cards.
This guide highlights the top 10 business credit cards in UK, helping you find the best option to streamline operations and manage finances efficiently.
What Are the Benefits of Using a Business Credit Card in the UK?
A business credit card can provide a range of benefits, making it an essential tool for entrepreneurs. Here are some of the most significant advantages:
- Separation of Personal and Business Expenses: A dedicated business credit card helps you keep personal and business expenses separate, simplifying bookkeeping and financial management.
- Improved Cash Flow Management: Business credit cards offer a buffer for cash flow, allowing businesses to pay for expenses even when funds are tight.
- Earn Rewards and Cashback: Many business credit cards in the UK offer rewards programs, cashback, or discounts on business purchases, such as office supplies, travel, or fuel.
- Expense Tracking: Business credit cards often come with tools for tracking expenses, generating reports, and integrating with accounting software, which makes budgeting easier.
- Build Business Credit: Using a business credit card responsibly can help build your company’s credit profile, which may help secure larger loans or better terms in the future.
- Perks and Insurance: Many business credit cards offer perks like travel insurance, purchase protection, and extended warranties that can be valuable for businesses that travel or make frequent purchases.
How Can Business Credit Cards Help Manage Cash Flow?
Managing cash flow is essential for business success, and a business credit card can be a valuable tool for this. One major benefit is the interest-free period, typically lasting 30 to 56 days, allowing businesses to make purchases without paying interest upfront. This helps cover expenses during times of tight cash flow.
Business credit cards also come with higher credit limits than personal cards, offering flexibility for larger purchases. In emergencies, these cards provide quick access to funds for urgent needs like repairs.
Additionally, they enable deferred payments, giving businesses time to collect revenue before paying off balances, helping to manage finances more effectively.
Another advantage of business credit cards is the ability to track expenses more easily. Many cards offer detailed reporting and expense management tools, allowing business owners to monitor spending and categorize transactions.
This not only simplifies bookkeeping but also helps identify cost-saving opportunities and keeps finances organized, ensuring smoother operations and better decision-making.
What Are the Different Types of Business Credit Cards Available in the UK?
When it comes to business credit cards in the UK, there’s no one-size-fits-all solution. Different businesses have different needs, and the types of credit cards available reflect that diversity. Here are the main types:
- Standard Business Credit Cards: These cards offer basic features like interest-free periods, rewards, and expense management tools. They are suitable for small and medium-sized businesses.
- Reward Business Credit Cards: These cards allow businesses to earn points, cashback, or other rewards for every pound spent. They’re ideal for businesses that make frequent purchases.
- Low-Interest Business Credit Cards: Designed for businesses that carry a balance, these cards offer lower interest rates on purchases and balance transfers.
- Charge Cards: Unlike credit cards, charge cards require the balance to be paid in full each month. They often come with no pre-set spending limits, making them a good choice for businesses with high cash flow.
- Corporate Credit Cards: These are designed for larger businesses with multiple cardholders, offering high credit limits, detailed expense tracking, and customizable reports.
How Do You Choose the Best Business Credit Card for Your Business Needs?
Choosing the right business credit card for your company depends on several factors. Here’s how to narrow down your options:
- Consider Your Spending Habits: If your business makes frequent purchases, a card with a robust rewards program might be the best fit. For those who travel often, look for cards with travel-related perks and points.
- Look at Fees and Interest Rates: Some cards come with annual fees or higher interest rates. If your business tends to carry a balance, focus on cards with low interest rates. Alternatively, if you pay off your balance in full each month, rewards might be more important than interest rates.
- Check Credit Limits: Depending on your business size and needs, you’ll want a card that provides a suitable credit limit. Startups might not need high limits, while established companies may benefit from cards offering large limits.
- Review the Perks: Some cards offer travel insurance, purchase protection, or access to exclusive services like airport lounges. Make sure the perks match your business needs.
- Look at Reporting Tools: For businesses with multiple employees, expense tracking tools are crucial. Some cards provide in-depth reporting and easy integration with accounting software.
What Should You Know About the Business Credit Cards UK Eligibility Check?
Eligibility for business credit cards in the UK varies depending on the card provider and the applicant’s financial situation. Here are the main things to consider when checking your eligibility:
- Business Type: Most business credit cards are available to limited companies, sole traders, and partnerships. Some cards may only be available to certain types of businesses.
- Credit History: Your personal and business credit history will be assessed. A good credit score increases the chances of approval and may also offer better interest rates or perks.
- Revenue Requirements: Some business credit cards require a minimum annual turnover. Startups and small businesses may need to provide financial projections to qualify.
- Personal Guarantee: Many business credit cards require a personal guarantee, which means you’ll be personally liable for the card debt if the business can’t repay it.
- Application Process: Most providers offer an online eligibility check that can tell you whether you’re likely to be approved before you officially apply, helping you avoid unnecessary credit checks.
Top 10 Business Credit Cards in UK
1. American Express® Business Gold Card
The American Express® Business Gold Card is designed for entrepreneurs and growing businesses that require flexibility and want to earn rewards on everyday purchases.
One of its standout features is the Membership Rewards program, which offers a wide range of redemption options that cater to business-related travel, supplies, and experiences.
For entrepreneurs who frequently travel or make significant business purchases, this card provides an excellent opportunity to accumulate points for business necessities like flights or hotel stays.
It offers:
- Annual fee: Free for the first year, £175 thereafter
- Rewards: Earn 1 Membership Rewards point for every £1 spent
- Benefits: Up to 54 days of interest-free credit, purchase protection, travel insurance, and no pre-set spending limit
- Eligibility: Must be a registered business with a UK bank account and a good credit history
Check Out & Apply: American Express Business Gold Card
2. Barclaycard Business Credit Card
The Barclaycard Business Credit Card is an excellent choice for entrepreneurs looking for a low-maintenance credit solution.
With its no-fuss approach, the card provides the essentials that small and medium-sized business owners need without complicating the process with excessive perks or fees.
It’s perfect for entrepreneurs who want to focus on running their business without being bogged down by managing complex reward programs or high annual fees.
Barclaycard offers one of the best business credit cards for small to medium-sized enterprises:
- Annual fee: No annual fee
- APR: 24.9% APR
- Benefits: No foreign transaction fees, free employee cards, and up to 56 days interest-free on purchases
- Eligibility: Available for UK-registered businesses with a good credit history
Check Out & Apply: Barclaycard Business Credit Card
3. Capital on Tap Business Rewards Card
The Capital on Tap Business Rewards Card is designed with entrepreneurs and small businesses in mind, offering simplicity in managing day-to-day business expenses while reaping the benefits of cashback.
Its straightforward rewards system allows businesses to see actual, tangible returns on their investments without the need to track complicated points systems.
This card is particularly beneficial for businesses that have consistent monthly expenditures and want to maximize their return on spending.
This card is excellent for startups and growing businesses looking for flexible credit options:
- Annual fee: £99 per year
- Rewards: 1% cashback on all purchases
- Benefits: Credit limits up to £250,000, no FX fees, free employee cards
- Eligibility: Must have been trading for at least 6 months with a valid UK address and a good credit score
Check Out & Apply: Capital on Tap Business Rewards Card
4. Lloyds Bank Business Credit Card
The Lloyds Bank Business Credit Card is a simple and effective financial tool for entrepreneurs who need a reliable option for managing regular business expenses. It’s geared toward businesses that prefer to avoid unnecessary frills and focus on straightforward banking.
The card provides consistent value by allowing entrepreneurs to make routine purchases with ease while maintaining control over their business finances.
Lloyds Bank offers a trusted banking experience, giving business owners access to dedicated support and comprehensive online banking tools.
Entrepreneurs can take advantage of the bank’s longstanding reputation for reliability and security, knowing that their transactions are protected and they have access to financial advice whenever needed.
Lloyds Bank offers a simple, no-frills business credit card designed to help with everyday purchases:
- Annual fee: £32 per year
- APR: 22.4% APR
- Benefits: Up to 45 days interest-free on purchases, online expense tracking
- Eligibility: Available for UK businesses with an annual turnover of at least £10,000
Check Out & Apply:
5. HSBC Commercial Credit Card
The HSBC Commercial Credit Card is designed for businesses that require more than just a credit line. It’s built to be a comprehensive financial tool for managing more significant expenses.
This card is a particularly strong choice for medium to large enterprises that want advanced tools for tracking spending, managing employee expenses, and gaining insights into financial operations.
Entrepreneurs who oversee growing teams or need to manage multiple cardholders will benefit from the streamlined reporting and robust analytics HSBC provides.
In addition to expense management, HSBC’s global presence means that businesses with international operations can take advantage of the card’s global reach.
The HSBC Commercial Credit Card is a solid choice for businesses that need flexible spending options:
- Annual fee: £32 per year
- APR: 22.9% APR
- Benefits: Expense management tools, purchase protection, and up to 56 days interest-free on purchases
- Eligibility: Must be a UK business with a good credit score
Check Out & Apply: HSBC Commercial Credit Card
6. Santander Business Credit Card
Entrepreneurs looking for a credit card that balances simplicity with value should consider the Santander Business Credit Card. This card is ideal for small businesses that need straightforward credit options without the burden of high fees or complex rewards systems.
It’s particularly suitable for business owners who are focused on maintaining low overheads while still having access to essential credit tools.
Santander is known for offering reliable customer support and flexible financial solutions. Entrepreneurs using this card will appreciate the ease with which they can manage their accounts online, track spending, and handle day-to-day expenses.
Santander offers a business credit card with low fees and useful perks:
- Annual fee: £30 per year
- APR: 23.7% APR
- Benefits: Up to 56 days interest-free, free employee cards, purchase protection
- Eligibility: Available to businesses with a good credit score and a UK business bank account
Check Out & Apply: Santander Business Credit Card
7. TSB Business Credit Card
The TSB Business Credit Card is a strong choice for entrepreneurs who want a simple, no-nonsense financial tool to help manage their business expenses.
It’s tailored to meet the needs of small businesses that require an easy way to handle daily transactions without the complications of rewards programs or premium features.
TSB’s straightforward approach makes it an attractive option for business owners who value clarity and simplicity in their financial products.
One of the standout benefits of using a TSB card is the bank’s strong focus on customer support. Entrepreneurs can rely on TSB’s dedicated business banking team to assist with any concerns or questions, providing peace of mind that their financials are in good hands.
The TSB Business Credit Card is designed to help small businesses manage expenses:
- Annual fee: £32 per year
- APR: 23.7% APR
- Benefits: Up to 45 days interest-free on purchases, online expense management
- Eligibility: Available to UK businesses with good credit and a turnover above £10,000
Check Out & Apply: TSB Business Credit Card
8. Virgin Money Business Credit Card
The Virgin Money Business Credit Card is an appealing option for entrepreneurs seeking a balance between competitive rates and valuable rewards.
It’s well-suited for businesses that make frequent purchases and want to earn cashback on their spending.
Virgin Money’s brand is synonymous with innovation and customer satisfaction, and this business card reflects that reputation with features designed to meet the needs of modern entrepreneurs.
Beyond cashback, Virgin Money offers a range of useful financial tools that help businesses manage their expenses. Entrepreneurs can easily keep track of their purchases, assign cards to employees, and monitor overall spending via an intuitive mobile app.
Virgin Money offers competitive rates and useful perks for business owners:
- Annual fee: £32 per year
- APR: 22.4% APR
- Benefits: Up to 56 days interest-free, purchase protection, cashback rewards
- Eligibility: Available for businesses registered in the UK with a good credit history
- Other Features: Cashback rewards on everyday business purchases and access to Virgin Money Lounges
Check Out & Apply: Virgin Money Business Credit Card
9. NatWest Business Credit Card
The NatWest Business Credit Card is an excellent solution for businesses that require flexibility and comprehensive financial tools to manage their operations. It’s particularly well-suited for larger businesses or entrepreneurs who need to issue multiple cards to employees.
The card comes with robust expense tracking features, making it easier for business owners to monitor company-wide spending in real-time.
NatWest is a trusted name in banking, and their business credit card reflects this heritage by offering superior security features and reliable customer service.
Entrepreneurs using this card will benefit from NatWest’s broad range of business support services, from financial planning to detailed reporting tools.
NatWest’s Business Credit Card is tailored to both small and large businesses, offering flexibility and competitive interest rates:
- Annual fee: £30 per year
- APR: 22.4% APR
- Benefits: Up to 56 days interest-free, access to free business management tools, and detailed reporting for multiple cardholders
- Eligibility: Available to UK-registered businesses with a turnover of at least £10,000 and a good credit score
- Other Features: Expense management system integration with leading software platforms
Check Out & Apply: NatWest Business Credit Card
10. Metro Bank Business Credit Card
The Metro Bank Business Credit Card is a strong contender for small business owners who want a no-frills, straightforward credit solution. This card is designed for entrepreneurs who value low fees and simplicity in their financial products.
Metro Bank has built a reputation for customer-friendly banking, and this business card continues that tradition by offering easy-to-understand terms and conditions without hidden fees or complicated rewards schemes.
Entrepreneurs using Metro Bank can also take advantage of the bank’s real-time financial tools, which provide immediate insights into spending patterns and help business owners manage their cash flow more effectively.
The Metro Bank Business Credit Card is a solid choice for businesses looking for straightforward terms and minimal fees:
- Annual fee: No annual fee
- APR: 14.9% APR (one of the lowest on the market)
- Benefits: Up to 56 days interest-free, free employee cards, and real-time spending insights through the Metro Bank app
- Eligibility: Suitable for UK-registered businesses with a good credit score
- Other Features: 24/7 customer service, ideal for smaller businesses that want easy, on-the-go management
Check Out & Apply: Metro Bank Business Credit Card
Conclusion
Selecting the right business credit card is about aligning the card’s features with your business needs. Whether you’re looking for rewards, cash flow management, or better expense tracking, there are plenty of options to explore in the UK market.
For startups and small businesses, cards like the Capital on Tap Business Rewards Card or Barclaycard Business Credit Card offer flexibility and low fees. Larger companies may benefit from more comprehensive tools and higher credit limits, like those provided by HSBC Commercial Credit Card or NatWest Business Credit Card.
As you choose, consider your business’s spending patterns, the perks that matter most, and the fees you’re willing to pay. Conduct an eligibility check with each provider before applying, to make sure your business meets the necessary criteria.
Remember, the right business credit card can enhance your financial management, streamline operations, and help your business grow.
FAQ About Business Credit Cards
What is the difference between a business credit card and a personal credit card?
Business credit cards are designed for company-related expenses and usually offer features like higher credit limits, expense tracking, and business-specific rewards. Personal credit cards, on the other hand, focus on individual use and rewards.
Can sole traders in the UK apply for a business credit card?
Yes, many business credit cards in the UK are available to sole traders. Providers typically assess personal and business credit history when considering applications from sole traders.
Do business credit cards in the UK affect personal credit scores?
It depends on the provider. In many cases, especially for small businesses, a personal credit check is performed. If the business credit card debt is not paid, it could impact your personal credit score.
What are the typical interest rates on business credit cards in the UK?
Interest rates for business credit cards in the UK typically range between 15% and 25% APR, depending on the provider and the applicant’s creditworthiness. It’s essential to check rates carefully, especially if you expect to carry a balance.
Can I get a business credit card if my business has just started?
Yes, many providers offer business credit cards to startups. However, they may require more detailed financial information or a personal guarantee to approve the card.
How do cashback and reward programs work on business credit cards?
Cashback and rewards programs allow businesses to earn points, miles, or cashback on qualifying purchases. These rewards can typically be redeemed for discounts, travel, or other perks.
Are there any business credit cards in the UK with no annual fees?
Yes, some business credit cards in the UK, such as the Metro Bank Business Credit Card, come with no annual fees, making them an excellent option for cost-conscious businesses.