What are business credit cards?
A business or company credit card is one that's held by a corporate entity rather than an individual.
It is generally used for business spending, but it can also be helpful for building your company's credit profile and managing employees' expenses.
Business credit cards are available to businesses of any size.
There are lots of different company credit cards, and each has a different set of requirements. For example, some are only available to businesses with a minimum or maximum annual turnover. Others require you to show two years of accounts.
You might get a different deal depending on the size of your business and its financial strength.
Find out more about business credit cards
Yes, some business credit cards charge annual fees. Others are free for the first year, and some don't charge annual fees at all. You can see the annual fee of each card on our the table above.
The other main thing to consider is your chosen card's interest rate. The amount of interest that card companies charge can vary considerably, so it’s worth bearing in mind how you plan to use your card when comparing business credit cards. The fees will likely differ if you use it to withdraw cash or while abroad, or if you go over your credit limit or miss a repayment.
You can find out more about credit card charges here.
How to find the best company credit card for your business?
Finding the best business credit card will depend on you, your business and what you need your business credit card for.
If you're looking for a card to borrow money and spread the repayments over several months, you'll need to find a company credit card with a low APR. Or, find one with a 0% period on purchases. This will keep down the amount of interest you pay.
But, if you'll be repaying your balance in full every month, you won't be charged interest. So you're best off looking for company credit cards with benefits such as a low annual fee or a good rewards scheme. Some come with benefits like insurance or cashback deals.
Don't forget to make sure that you can get as many cards as you need to, for all your employees.
What perks do business credit cards come with?
As with any credit card, different business credit cards have different benefits. These could include:
Cashback - you'll get a percentage of what you spend returned to you
Insurance - such as free travel insurance
Discounts - you'll get exclusive offers on certain stores or leisure activities
0% interest deals - no interest on your spending for a set time period
Reward points - such as air miles or points that can be exchanged for other vouchers.
What are the alternatives to a business credit card?
The alternatives to business credit cards will largely depend on how and why you’re considering a company card.
If you’re simply looking for a way to pay for things and already have the money to do so, a business bank account could be an option.
However, if you’re looking to borrow in order to finance a large purchase, you could consider a business loan.
You can view all of our business specific products here.
