Business credit card rates
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Capital on Tap Business Credit Card Visa
American Express British Airways American Express® Accelerating Business Card
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DisclaimerThe list of business credit card providers on this page is a selection of services available and gives you an idea of the kind of options available. You can find out more about the individual products by visiting any of the providers listed.
All credit cards are subject to the applicant’s status. The APR quoted is representative of the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you are offered may be higher, or you may not be offered credit. Fees and rates subject to change without notice. Please check all rates and terms before borrowing.
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A business credit card can be a convenient way to purchase items for your business and to pay for a range of expenses. For example, you could use a business credit card to pay for office supplies and equipment, entertainment and any travel and accommodation costs.
These cards can also help you to manage your business finances and cover any short-term gaps in your cashflow if you’re waiting for invoices to be paid, for example.
As with personal credit cards, business credit cards allow you to borrow money over a short period and pay it back at a later date. They come with a credit limit, which is the maximum sum you can borrow on the card, and may offer additional perks such as a cashback or reward scheme.
It’s possible to issue credit cards to employees (and set spending limits on them), which can help a business keep track of its expenses.
Business credit cards typically come with an interest-free period, which is usually around 56 days. Some cards offer longer introductory 0% periods, which may not charge any interest for several months.
However long the interest-free period is, your business should aim to pay off the balance in full before interest charges apply. But, at the very least, your business needs to make the minimum payment each month, otherwise extra fees may apply and your business credit history could be affected.
Businesses that operate internationally or have members of staff that need to travel abroad can look for a business credit card with reduced foreign exchange fees.
It’s up to you and your individual business requirements as to whether you have a business credit card.
A business credit card can offer several benefits as:
However, it’s important to remember that interest rates on business credit cards can be high and they may come with annual fees, so make sure to calculate any costs before applying.
Furthermore, a business credit card is only suitable if you don’t borrow more than you can afford to repay, otherwise you risk harming your business credit score and creating more serious consequences for your business.
Businesses that need to borrow more for larger purchases could consider a business loan. It’s possible to borrow several thousand pounds to hundreds of thousands of pounds with a business loan and repay it (with interest) over a set number of years.
While you could theoretically use a personal credit card for your business spending, mixing your personal and business finances generally isn’t recommended.
It’s easier to track your business expenditure and complete your accounts if you keep your business finances separate from your personal accounts.
Furthermore, if you use a personal credit card for your business spending, your personal credit history will be affected and you will be personally liable for repaying the debt.
Business credit cards may come with the following fees and charges:
Before applying for a card, it’s a good idea to compare business credit cards on our chart above. The key things to look at are each card’s annual percentage rate (APR), annual fee, any cashback or rewards, associated fees and introductory 0% deals.
You should also check the eligibility criteria as some cards require you to be an existing business banking customer with the brand, while some cards are only available to certain business types. They may also set minimum annual turnover requirements.
As a rule, most business credit card providers require applicants to be UK residents over the age of 18 with a UK-registered business.
Once you’ve chosen a suitable business credit card, you can typically apply online, over the phone or in branch.
You will need to answer some questions about your business, including:
You may also need to provide certain documents, including proof of identification and copies of bank statements and related financial information, such as tax statements.
Once you’ve applied, the lender will perform a credit check on your business, and sometimes a personal credit check too.
If approved, you’ll usually receive your new card(s) after several working days.
Some providers allow you to check your eligibility for a business credit card before applying, without affecting your credit score.
The application process for a business credit card will be largely the same whether you’re a new business or a more established one.
However, as a new business, you may not have much, if any, evidence of turnover, cashflow or trading history to support your application. This means you may have to provide additional information, such as bank statements, forecasts and maybe even a business plan.
The card provider will also run a check on your business credit history. But, because a new business may not have built up its own credit score yet, providers may take a closer look at your personal credit history to help them make a decision on your application.
Providers may ask newer businesses to provide a personal guarantee on their credit card, which states that you’ll be personally liable for any debts should your business default on the repayments. This may not always be necessary, and may be required even if you’re an established company, but it’s worth bearing in mind if you’re a new business.
It’s possible to get a business credit card for bad credit, but the choice of options is likely to be more limited than if your business has a long history of good credit.
Moreover, the cards that you are eligible for are likely to come with a higher interest rate and lower credit limit, while additional features such as reward schemes may be limited or non-existent. You’re also more likely to be asked for a personal guarantee to minimise the risk to the card provider.
Before applying for a business credit card, it’s worth seeing if you can check your eligibility to find out your chances of approval. This won’t involve a hard credit check so won’t affect your credit score.
Don’t make the mistake of applying for a lot of cards in a short period as multiple hard credit checks in a short period could have a negative impact on your credit history. Try to only apply for a single business credit card that you’re confident you’ll be approved for.
Yes. Much like with a personal credit card, by effectively managing your business credit card you can start to build the credit score of your business. This could help you secure additional finance in the future at more competitive interest rates, for example, to help your company invest and grow.
To improve your business credit rating, it’s crucial to keep to the terms of your credit agreement, including not going over your credit limit and never missing a repayment. If you were to fall behind on payments, for example, a business credit card could harm your credit score and cause it to drop, instead of improving it.
Some providers may only run a soft personal credit check when you apply for a business credit card, which won’t be recorded on your credit file. But, in some cases, particularly for newer businesses, providers may run a hard credit check on your personal credit report, which could affect your score.
However, provided you manage your credit agreements effectively and don’t make any further applications for credit within the next few months, this impact should be minimal.
In general, the only other time a business credit card could affect your personal credit score is if you give a personal guarantee. This would mean that, if your business defaults on the credit card debt, you would be personally liable to repay it.
While business credit cards have their perks, it’s important to avoid making the following mistakes. Otherwise, the potential damage a credit card can cause could outweigh the benefits it offers.
Instead of a business credit card, there are other finance options that could be suitable for your business, such as:
See our company credit card comparison chart above to look at the features of different business cards.
Yes, any fees and charges incurred while using your business credit card, such as an annual maintenance fee, are tax-deductible.
This depends on the individual situation of the business and what they want from their credit card. However, there are business credit cards designed for smaller businesses that have a lower turnover requirement, for example, so these options are likely to be more suitable than credit cards designed for larger companies. See our business credit card comparison chart above to compare the features and eligibility criteria of different cards.
No. Section 75 of the Consumer Credit Act only applies to personal credit cards, not business credit cards.
It may be possible to qualify for a business credit card if you don’t have any revenue or trading history, although it is likely to be more difficult and you may not be eligible for the best deals. Ultimately, it will depend on individual providers as to whether they accept your application.
To support your application, providers may check your personal credit report and may require a personal guarantee, which means you would need to repay the debt on your card if your business is unable to do so.
They can be, although this depends on the agreement you have with your lender. Some will ask you to provide a personal guarantee which will see you liable if the business can’t pay its debts. This is more likely if you’re a new or small company and may not be required if you’re a larger established firm with a solid business credit rating.
While credit cards and charge cards work in similar ways as you can use them both for spending, they differ in how you repay them. Businesses have more flexibility in how they repay a credit card as they don’t need to clear the balance each month (although doing this will avoid any interest charges). By contrast, charge cards require you to pay off your balance in full every month.
Business credit card interest can be claimed as a business expense and deducted from your pre-tax profits to reduce your tax bill.
HMRC states that businesses must keep records of all financial transactions, including receipts, for six years from the end of the last company financial year they relate to.
When managed effectively and repaid in full, a credit card could help a business save money, or even make money. For example, because a credit card can offer interest-free borrowing for a short period, it can be a cheaper alternative than other sources of credit. Furthermore, if a business needs to spend overseas, a specialist credit card could offer a fee-free solution.
Additionally, business credit cards with rewards or cashback can help a business make money on their spending. However, it’s important to factor in any interest costs (if you don’t repay the card before charges apply) and any standard monthly or annual fees charged by the card provider.
To help protect your credit card (and overall business finances) from fraud, you should take precautions such as using strong passwords, not sharing your passwords and other key information and only using your card on secure websites. Furthermore, it’s a good idea to take advantage of any security measures on offer, such as multi-factor authentication, and be wary of any messages or phone calls asking for sensitive details. Checking your credit card statements for any unusual transactions can also help you identify any fraudulent transactions and respond quickly.
Credit limits on business credit cards are the maximum amount you can spend, so your total card balance can’t exceed this sum. You may be able to ask your provider to increase your credit limit, but this will be up to the discretion of the provider and subject to checks.
You’re more likely to get a business credit card with a high limit if you have a good credit rating.
Not usually. Most providers will only offer UK business credit cards to UK residents and businesses registered in the UK.
When you apply for a business credit card, providers will usually ask for details of your business. If you want a credit card for personal use, see our personal credit card charts.
Some business credit cards may offer 0% balance transfer periods, but this will depend on the provider. These offers are likely to be reserved for businesses with a good credit rating.