Business credit cards

If you've just set up your business, you might want to focus on cards with easy approval that use a soft credit check before you apply, which don't require a long business history.

A card with minimal requirements might be best-suited for your first card, so a simple cashback feature might be all you need at this stage.

If you want to keep costs low, you might prefer a card with low or no annual fees.

If you're using the card to manage a cash flow gap and you're likely to carry over a balance, you could choose to go for a card with a low APR. This will keep your monthly repayments lower if you are unable to clear your balance.

When you're travelling for your business a lot, it could be beneficial to earn money on the miles you're clocking up.

A card with perks, including travel points, might be most suitable for your business.

If your business is growing and you want to use your card for increased spending, a card with a higher limit might be best for you.

You could consider a card with accounting integrations, which also offers the option to have multiple cards for your employees.

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.

No, you do not necessarily need a business current account to apply for a business credit card. 

However, having a dedicated business bank account can 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. 

A business current account can help you stay organised, streamline bill payments, and ensure smoother financial operations for your company. Many business credit card providers may even prefer applicants with a business account, as it shows more structured financial management.

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.

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.

Approval times vary by provider. Some offer instant decisions, and you may even receive a digital card the same day.

If additional verification is needed, approval can take a few days, and the physical card typically arrives within 5–10 working days.

To speed up the process, have the following information ready:

• Business name and trading details

• Company registration number (if applicable)

• Financial figures (e.g., annual turnover)

• Personal details for directors or partners

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.

APR (Annual Percentage Rate) shows the total cost of borrowing on a business credit card over a year. It includes both the interest charged on any balance you carry, as well as any additional fees (such as annual fees). Essentially, you can think of it as the "price" of using the card if you don’t pay off the balance in full each month.

Your APR will depend on factors, such as your personal and business credit history, your business's finances, and the card provider's policies. It's also worth nothing that it can change over time, so it's important to check your card agreement for any updates. The exact APR you're offered will vary depending on your circumstances and the card you apply for.

Business credit cards in the UK typically aren’t fully interest-free, but many offer an interest-free period on purchases — usually between 20 and 56 days — as long as you pay the balance in full each month.

If you carry a balance beyond the due date, interest will apply, so it's important to clear the full amount to avoid charges. Always check the card’s terms to understand the interest-free period and any fees.

Choosing a card with a generous interest-free window can help free up working capital, especially when spreading the cost of large purchases.

Yes, employees can have their own company credit cards for business expenses. This allows them to make purchases without using personal funds and eliminates delays in reimbursement, 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.

The number of business credit cards you need 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.

Tax deductions

Using your business credit card for legitimate business expenses, like office supplies, travel, or client entertainment, can also help you claim tax deductions.

These purchases are typically considered tax-deductible business expenses when filing your self-assessment or corporate tax return. To make the process easier, keep detailed records of all transactions. Credit card statements can be a useful tool for tracking and categorising expenses.

Interest on outstanding balances is generally not tax-deductible, so it’s important to pay off your credit card on time to avoid unnecessary costs. For personalised advice and to maximise your deductions while staying compliant, consult a qualified accountant or tax adviser.

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.

Choosing the right business credit card depends on how you plan to use it. Here are three factors to consider:

• Spread payments: If you plan to carry a balance, focus on cards with a low APR to keep interest costs down. Look for 0% introductory offers, check how long the low-rate period lasts, and be aware of any balance transfer fees. Ideal for larger or irregular purchases.

• Spend regularly: For frequent purchases, choose a card with a long interest-free period. This helps manage short-term cash flow while avoiding interest. Look for cards offering rewards, cashback, or discounts, and consider tools for employee cards and expense tracking.

• Pay in full each month: If you clear your balance monthly, interest is less of a concern. Instead, prioritise cards with strong rewards, low or no annual fees, and perks like travel insurance or purchase protection. Match the card to your spending habits to get the most value.