Business credit cards

Check both your personal and business credit scores to ensure they are accurate before a provider runs a credit check later in the application process.

Compare business credit cards with multiple providers to find one that aligns with your company's spending habits and needs.

Consider the interest rates, fees, rewards programs, and credit limits you want from the card.

Check that you meet the card's eligibility criteria, which usually requires you to be a UK-registered business and aged over 18 years old.

Before submitting a formal application, use online eligibility checkers to assess your likelihood of approval without impacting your credit score. This can help you avoid unnecessary ‘hard’ checks.

Many providers will evaluate both your business and personal credit scores, especially for new or small enterprises.

Some providers will also require you to sign a personal guarantee to get approved. This means you are legally responsible for paying the balance back if you cannot make repayments.

Prepare your business details like your turnover, registered address, company registration number and unique taxpayer reference.

Providers will also ask you for details like your home address, and you'll need proof of your identification.

Submit your application online, over the phone, or in person. Be prepared for a credit check and to provide a personal guarantee, especially if your business is new.

Once approved, some providers offer an instant decision with access to virtual card details so you can start spending right away. Other providers may dispatch your physical card shortly thereafter.

Having a low company credit score doesn't necessarily mean you will not be approved.

You can still get a business credit card with bad credit, but it will likely have a lower credit limit or a higher interest rate.

Providers will usually conduct both a company and a personal credit check to assess how suitable your business is for credit, so if you're unsure, use an eligibility checker to do a 'soft' credit check to see how likely you are to be approved before you apply. This will not affect your credit score.

Also, some specialist providers offer cards to businesses with low credit scores, requiring a personal guarantee as part of the agreement. This means you will agree to cover the repayments if your business can't.

Yes, you can give company credit cards to your employees. This allows them to make business purchases without using personal funds and eliminates reimbursement delays, making day-to-day operations smoother.

Many business credit card providers also offer spending controls, so you can:

• Set individual spending limits for each employee

• Monitor expenses in real time

• Easily track and manage company spending

Introducing employee credit cards can streamline expense management, improve financial oversight, and give you better visibility into how your business budget is being used.

To make the most of this, it’s crucial to implement a clear company credit card policy. This should cover:

• Spending limits for different types of expenses

• Prohibited purchases

• Receipt and reporting requirements

• Consequences for misuse

A well-managed company card program ensures your employees can spend efficiently while keeping your business finances secure and under control.

You are allowed to use a personal credit card for business expenses, but it's worth thinking carefully before doing so. Mixing business and personal spending can make it harder to keep your records clear, and it could be trickier to see what costs are tax-deductible.

Using a personal card for business expenses can also mean you are personally liable for the debt, while a business card helps maintain a clearer legal distinction between you and your business.

If you're a sole trader and want to use a personal card, it could be more helpful to use a separate card for your business purchases. For limited companies, a company card is usually a much better option to ensure a separation of liability.

A business credit card offers different protections than a personal credit card. For company card purchases, you're not covered under Section 75. This law covers personal credit card purchases between £100 and £30,000 if goods arrive damaged, aren't delivered at all or are purchased from a company which stops trading.

However, depending on your provider, a business credit card can protect you in several ways, including:

• Online guarantee: This covers you against fraudulent use of your business credit card for purchases made online.

• Chargeback rights: If you do not receive a product or service as described, you can dispute the purchase with the supplier to get a refund.

• Employee misuse insurance: This is an option with some providers to cover unauthorised spending by staff members.

• Travel insurance: Some providers include free travel insurance with their business credit card.

• Additional fraud insurance: Providers may offer extra cover for fraud or misuse of the card.

Your credit limit will depend on factors such as your business’s turnover, credit history, and how long you’ve been trading.

In the UK, some providers, including many high street banks, offer limits of around £25,000, while some digital-first providers go as high as £250,000.

The number of business credit cards you have depends on your business’s spending habits and financial goals.

Having more than one card can help organise expenses by category, such as travel, office supplies, or client entertainment, and can help you maximise rewards like cashback or travel points. Multiple cards can also improve cash flow by spreading out payment due dates.

However, it’s vital to monitor credit limits carefully, as high credit usage can affect your business credit score. Managing several accounts requires discipline to avoid missed payments or overspending.

Ultimately, the best approach is to choose the number of cards that fits your business needs and financial management capabilities.

Representative APR is the interest rate that at least 51% of successful applicants are expected to receive when a business credit card is advertised. The rate you’re offered may be different depending on factors such as credit history and your business' circumstances

Personal APR is the interest rate offered specifically to you after a provider reviews your application. This is the APR that applies to your business credit card account once you’re approved.

Lowest APR is the lowest interest rate a provider advertises for a business credit card. It’s usually only available to applicants who meet the lender’s eligibility criteria, so you may be offered a higher rate.

The most common types of business credit cards to consider, depending on your business needs, are:

• Reward cards: If your business makes regular purchases, rewards business credit cards can help you earn something back. Depending on the provider, rewards may include cashback on everyday spending, loyalty points or vouchers for popular retailers, or travel perks like air miles or hotel discounts.

• 0% interest cards: Some business credit cards offer short 0% introductory periods on purchases or balance transfers, helping you manage cash flow without paying interest. With this type of card, deals are usually shorter than those on personal cards, and you will need to clear the balance before the offer ends to avoid standard interest charges. Some cards also come with added perks, such as cashback.

• Balance transfer cards: Balance transfer business credit cards let you move existing debt from other cards to one with a lower interest rate. Many offer extended 0% interest periods, allowing you to reduce your debt more efficiently by focusing repayments on the balance rather than interest. This type of card can be a useful tool for consolidating multiple credit lines or managing short-term cash flow challenges.

• Purchase cards: These cards can be ideal for spreading the cost of larger business expenses, especially since many offer an introductory 0% interest period. This gives you the flexibility to make essential purchases upfront and repay them over time without incurring interest, provided you clear the balance before the interest-free window ends.

• Secured cards: Secured business credit cards are rare in the UK, but may be an option for businesses with a limited credit history. When available, they tend to require a cash deposit that typically matches the credit limit. Most UK lenders focus on unsecured cards or other forms of asset-backed finance instead.

Business credit cards often come with rewards that help your company get more value from everyday spending. Popular features include:

• Cashback

• Air miles

• Travel points

• Shopping vouchers

Some cards offer higher perks in specific business categories, such as fuel or software subscriptions. Other providers even offer bonus points for hitting a minimum spend within the first few months.

For businesses that travel frequently, cards offering air miles or hotel points can provide significant value.

Many providers also allow you to spread them across multiple employee cards, helping your business accumulate points faster.

Yes, startups and new businesses in the UK can apply for a business credit card. A business credit card can be an essential tool for optimising cash flow and covering initial business expenses in the early stages. 

However, as a new company, you may be required to provide additional information to demonstrate your ability to meet repayment obligations.

To assess your eligibility, the provider may conduct a personal credit check (especially if you're a sole trader or have personal liability), request company financial statements, and ask for details about your business assets. This will help the provider determine your credit limit and the terms of your card.

Keep in mind that approval may be more challenging for new businesses without an established credit history, but offering a personal guarantee or showing strong personal credit can help increase your chances of approval.

While not always strictly required, most banks and providers do require a business current account to apply for a business credit card.

The account can be used to settle monthly payments and verify business legitimacy.

Some providers, such as NatWest, Capital One, and The Co-operative Bank, strictly require an existing business account with them, while others may be more flexible.

Having a dedicated business bank account can also significantly simplify your financial management, allowing you to separate your business finances from personal transactions, making it easier to track business expenses and manage your cash flow.

Yes, when you apply for a business credit card, credit card providers will typically assess both your business's credit record and your company’s overall financial health.

If your business has limited or no credit history, the card issuer may also check your personal credit score to evaluate your creditworthiness.

Your business credit card usage can also affect your personal credit if you're the primary account holder or have personally guaranteed the account.

To avoid negative impacts, use your business card responsibly: pay on time, keep your balance low, and avoid maxing out your limit.