As a business owner, choosing the right business credit card can be a flexible and effective way for you to borrow money. But how do you decide which one is best for your needs?
To help you decide, we’ve reviewed the top business credit cards available in the UK and compared their features, benefits, and terms.
- Capital on Tap Business Credit Card
- American Express Business Gold Card
- Metro Bank Business Credit Card
- Amazon Business Prime American Express Card
- Santander Business Cashback Credit Card
- Barclaycard Select Cashback Business Credit Card
- RBS Business Plus Credit Card
- The American Express Business Basic Card
- Juni Business Virtual Charge Card
- Business Charge Cards
- Overdrafts
- Business Loans
Capital on Tap Business Credit Card
(Best Overall)
The Capital on Tap Free Business Credit Card is our top overall pick due to its impressive range of benefits tailored to small businesses, a competitive 1% cashback reward scheme, and flexible credit limits.
Features
- No monthly/annual fee
- £250,000 credit limit, which can be topped up further with pre-loading
- Purchase Rate and Representative APR of 36.19% APR variable
- 1% cashback
- Points for gift cards
- No introductory offers
- Unlimited employee cards
- Free expense management tools
- Zero liability on fraud policy with Visa
- 24/7 Customer support
Card Summary
This card offers a Purchase Rate and Representative APR rate of 36.19% (variable) APR, with no annual, ATM, or foreign exchange fees.
You can pre-load the card with your own funds to increase the balance and still earn 1% unlimited cashback.
There are three options to choose from. The Free card has no annual fee and enables you to earn rewards on all card spending. These rewards can be redeemed against your balance, for cash, or for gift cards.
If you want to redeem your points for Avios, you can upgrade to the Business card for £99 per year. You’ll also receive 10,000 bonus points if you spend £5,000 using your card in the first 3 months.
Frequent travellers may find Capital on Tap’s premium Pro card more appealing. For an annual fee of £299, this card gives cardholders unlimited access to over 1,600 lounges as well as grants them Radisson Rewards VIP status.
Only private limited companies or partnerships with turnover above £24,000 can apply.
Read our full Capital on Tap review
American Express Business Gold Card
(Best Business Charge Card with Rewards)
The American Express Business Gold Card is designed to reward your business spending with flights, hotels, shopping discounts or charitable donations.
As this is a charge card rather than a credit card, you must repay the full balance each month.
Features
- 12 months free, then £195/year
- No fixed credit limit
- No interest rate, balance must be repaid each month
- 1%-2% Cashback variable
- Points for spending and credit on eligible brands
- 20,000 bonus membership points if you spend $3,000 in the first 3 months
- Up to 20 free employee cards
- Access to AmexExpense, a free business expenses solution.
- 24/7 fraud alerts and fraud phone line
- 24/7 customer support
Card Summary
The American Express Business Gold Card offers points for purchases, redeemable through PayPal or for hotels, car hire, flights, spa days, office supplies, and more.
It has no annual fee for the first year, then costs £175 annually.
You won’t be eligible for the welcome bonus if you hold or have held a Membership Rewards enrolled American Express Card in the past 13 months.
Note that American Express is not accepted everywhere.
More About American Express
Read my detailed comparison of American Express business credit cards
How do Amex credit card rewards work?
The American Express Business Gold Card offers 1 Membership Rewards point per £1 spent. For example, if you spend £1,000 on the card in a month, you would earn 1,000 Membership Rewards points.
These points can then be redeemed for statement credits, with each point worth around 0.5p, meaning 1,000 points would equal £5 in statement credits.
Metro Bank Business Credit Card
(Best for European Travel)
Metro Bank’s Business Credit Card is designed to effectively manage your business’s spending, offering a streamlined service with a focus on simplicity and accessibility.
Features
- No monthly/annual fee
- Credit Limit subject to status
- 18.9% APR variable
- No Cashback
- No Rewards
- No Introductory Offers
- Up to 9 Employee Cards
- Expense management tools available
- Multi-factor authentication, real-time detection systems and more
- Limited customer support
Card Summary
The Metro Business Credit Card stands out for its simplicity and lack of complicated rewards schemes.
It has no annual fee, an APR of 18.9%, and no fees for using the card in Europe.
For transactions outside Europe, there’s a 2.99% fee plus £1.50 for cash withdrawals.
You get up to 56 days interest-free on purchases.
A Metro Bank Business Current Account is required to apply.
Amazon Business Prime American Express Card
(Best Business Credit Card for Amazon Rewards)
The Amazon Business Prime Credit Card from American Express offers higher rewards for Amazon purchases and the option to extend payment periods by 90 days, improving cash flow.
However, note that the APR is high.
Features
- No fee for 12 months, then £50/year
- Credit Limit
- 39.7% APR variable
- 2% cashback on first £120,000, then 1%. Resets yearly.
- Extended Payment Terms
- £50 Amazon voucher and more
- 20 complimentary employee cards
- Expense management software integration available
- 24/7 fraud alerts and fraud phone line
- 24/7 customer support
Card Summary
If your business spends a lot on Amazon, you would benefit from the benefits this card offers.
Upon application approval, you get a £50 Amazon voucher and £50 statement credit if you spend £1,000 in the first three months.
You can then choose either higher rewards (cashback) or 90 days to pay per purchase.
However, note the high APR, so be sure to repay your balance on time.
Only Amazon Business Prime members can apply.
Santander Business Cashback Credit Card
(Best for Small Business)
The Santander Business Cashback Credit Card offers a rewarding way to manage your spending, with features aimed small and medium-sized businesses and a low annual fee.
Features
- £30 annual fee
- Credit Limit subject to status
- 23.7% APR variable
- 1% cashback
- No Rewards
- No Introductory Offers
- 3 Employee Cards
- Santander’s own “My Money Manager” tool
- Zero liability on fraud policy, monitoring systems and more
- Limited customer support
Card Summary
The Santander Business Cashback Credit Card offers 1% cashback on all spending, which is credited to your monthly statement.
When paying in the local currency abroad, there are no transaction fees. However, cash withdrawals overseas incur a 3% fee (minimum £3) plus interest charges.
This card is a solid choice for small business owners seeking core benefits without high annual fees.
You must already do your business banking with Santander to apply.
Barclaycard Select Cashback Business Credit Card
(Best for Cashback)
The Barclaycard Select Cashback Credit Card offers business owners a rewarding cashback scheme and other perks, such as free insurance coverage.
Features
- No monthly/annual fee
- Credit limit subject to status
- 27.5% APR variable
- 1% cashback
- Offers on selected brands
- £85 after first eligible £5,000 spent
- Unlimited Employee Cards
- Free FreshBooks accounting plan (worth £260/year)
- Fraud prevention features and fraud hotline
- Limited customer support
Card Summary
The Barclaycard Select Cashback Credit Card helps businesses manage spending and improve cash flow, offering rewards on spending and a welcome bonus.
Standout features include no annual fee, up to 56 days’ interest-free on purchases, purchase protection and cardholder misuse insurance.
The Barclaycard for Business app helps track spending, and additional perks include access to gigs, comedy nights, and discounts on business essentials.
To apply, businesses must have a turnover of more than £10,000 per year.
More About Barclaycards
Read my full article on Barclaycard Business Credit Cards
RBS Business Plus Credit Card
(Best for Managing Spend)
The RBS Business Plus Credit Card offers different levels of cashback depending on the type of purchase, up to an annual limit.
While it does have an annual fee, it also comes with access to a free app to help businesses manage their spending.
Features
- Free for 12 months, then £70/year per cardholder
- Credit limit subject to status
- 29% APR variable
- 1-3% cashback on eligible spending. £600/year limit
- Merchant discounts
- No introductory offers
- No employee cards
- FreeAgent accounting integration and access to ClearSpend available
- 24/7 fraud monitoring and one-time passcodes for payments
- 24/7 customer support
Card Summary
The RBS Business Plus Credit Card offers the analysis and management of your business’ spending via the ClearSpend app.
It has no foreign transaction fees and provides up to 56 days of no interest on purchases.
However, the annual fee and upper limit on cashback earnings might not suit everyone.
To apply, you must have a Royal Bank of Scotland business current account.
The American Express Business Basic Card
(Best for a Basic Charge Card)
The American Express Business Basic Card is designed to provide businesses with the essential features they need for making purchases, offering flexible spending power and no annual fee.
It is a charge card that offers convenience and control to business owners.
Features
- No monthly/annual fee
- No credit limit
- Must be paid back in full each month
- No cashback
- No rewards
- No introductory Offers
- Unlimited employee Cards
- Expense Management Tools Available
- 24/7 fraud alerts and fraud phone line
- 24/7 customer support
Card Summary
The American Express Business Basic Card doesn’t have a wide range of features and benefits because it is a simple charge card which you pay off in full every month.
One perk is that Amex cardholders get access to priority booking for some shows and events through American Express Experiences.
To apply for this card, businesses need to have a current UK bank or building society account; and the applicant must be aged 18 or over and have a permanent UK home address.
Note that American Express is not accepted everywhere.
Juni Business Virtual Charge Card
(Best for E-commerce)
Juni’s virtual business charge card is designed for e-commerce businesses.
This card provides cashback, easy integration with numerous platforms, and quick virtual card creation.
This is a charge card, not a credit card so the balance needs to be repaid in full each month.
Features
- No monthly/annual fee
- £250k/day spending limit per card
- No interest rate, balance must be paid in full each month
- Up to 1% cashback
- No rewards
- No introductory offers
- Unlimited employee cards
- Extensive integrations available
- 24/7 fraud monitoring
- Limited customer support
Card Summary
The Juni Business Charge Card offers up to 1% cashback on eligible spending and integrates with Google Ads, ideal for ecommerce companies.
It features high spending limits, seamless compatibility with over 2,400 tools, and currency options in USD, EUR, and GBP, with FX fees capped at 0.5%.
Monthly full repayment is required, and the focus on online marketing may not suit all businesses.
Applicants need a current UK bank account and must be 18 or older with a permanent UK address.
What’s our methodology?
To rank the top business credit cards, our methodology focused on a mix of financial factors and card features that directly impact business users. We considered the following key criteria:
- Interest Rate on Purchases: We looked at the representative Annual Percentage Rate (APR), which indicates the cost of borrowing on the card. A lower APR means the card is cheaper to use for carrying a balance.
- Cashback: We evaluated cards that offer cash back, a feature where a percentage of spending is returned to the cardholder. This provides direct financial rewards for card usage.
- Other Perks or Benefits: We included additional benefits such as points earning systems, which can offer value in forms like travel, merchandise, or further cashback, enhancing the card’s overall worth.
- Availability: The accessibility of cards was also a consideration, assessing whether they are offered to all businesses or exclusively to existing customers of the issuer.
- Purpose-Specific Benefits: Recognising different business needs, we also considered how well each card serves specific purposes, including:
- Rewarding spending with cashback and points.
- Offering low APR and minimal fees for cost-effective borrowing.
- Features for managing spending, essential for budgeting and financial control.
- Providing no-frills, basic credit options for straightforward use.
- Supporting the unique needs of small but growing businesses.
What is a Business Credit Card?
A business credit card is a flexible way to borrow money up to a pre-set credit limit.
It functions similarly to a personal credit card but is tailored to meet the needs of businesses.
It provides a line of credit that allows businesses to make purchases, manage expenses, and build a credit history separate from personal finances.
A business credit card differs from a prepaid business card in that a business credit card offers a line of credit to make purchases and withdraw cash, accruing interest if the balance is not paid in full, whereas a prepaid business card requires loading funds in advance.
How Does a Business Credit Card Work?
A business credit card works by providing businesses with a revolving line of credit. Once approved, you can use the card to make purchases for your business, pay bills, and cover other expenses.
The credit card issuer sets a credit limit, which is the maximum amount you can borrow. You can make payments on the card either in full or in minimum monthly instalments, and any remaining balance incurs interest charges.
Business credit cards may also offer additional perks and rewards tailored to business needs.
Do I Need a Business Credit Card?
Having a business credit card can offer several advantages for your company.
It helps separate your personal and business expenses, simplifies accounting and expense tracking, and allows you to build a credit history for your business.
Business credit cards often come with various perks, such as cashback on your everyday spending, travel benefits, and expense management tools.
Who Can Get a Business Credit Card?
Business credit cards are typically available to various types of businesses, including sole proprietorships, partnerships, corporations, and limited liability companies (LLCs).
The specific eligibility requirements may vary depending on the issuer, but generally, you will need to have a legitimate business with a certain level of income or revenue.
Some issuers may also consider your personal credit history and financial situation when evaluating your application.
Pros and Cons of Business Credit Cards
Reasons to Use a Business Credit Card
- Manage short-term expenses and cash flow during uneven revenue periods.
- Earn rewards like cashback, travel rewards, and points per pound spent.
- Easily track and categorise business spending.
- Build a strong credit history with timely repayments.
- Control business spending with free employee cards and customisable limits.
- Get protections like extended warranties, travel insurance, and fraud protection.
- Access quick capital for small businesses.
You Should be Aware Of
- High interest rates can accumulate on balances carried month to month.
- Easy access to funds can lead to overspending and debt.
- Personal liability for business debts can impact your personal credit score.
- Rewards can be complex and require management.
- Annual fees may outweigh the benefits depending on card usage.
- Foreign transaction fees can add up.
- Limited consumer protection against billing errors or disputes compared to personal credit cards.
How Do I Apply for a Business Credit Card?
To apply for a business credit card, you typically need to provide information about your business, such as its legal name, address, and tax identification number.
You may also need to provide financial statements, proof of income, and other documentation depending on the issuer’s requirements.
The application process can often be completed online.
Business Credit Card Eligibility Check
There are a few main criteria you’ll usually need to meet to be eligible for a business credit card in the UK, although different credit card issuers may have their own specific policies.
- Business type: Eligibility depends on business type, with preferences or restrictions for certain industries or structures.
- Business age: Credit card issuers often require the business to be operating for a few months to a year.
- Turnover and financials: Issuers assess annual turnover, profit margins, and cash flow to determine creditworthiness.
- Personal credit history: For small businesses, the owner’s credit score can impact approval chances.
- Debt-to-income ratio: A favourable debt-to-income ratio indicates the business can manage additional credit.
- Legal entity and company registration: The business must be a registered legal entity with a unique company registration number.
- Documentation and verification: Issuers may require bank statements, filed accounts, or tax returns to verify financial standing.
- Other factors: Additional considerations may include industry, number of employees, and trading history.
The Best Business Credit Cards in the UK (2024)
As of May 2024, here’s what we think are the best deals for different needs, like low fees and interest rates, or cashback and rewards.
| Card Name | Key Features | Rating | Register |
|---|---|---|---|
| Capital on Tap Business Credit Card | Competitive rewards programme, low fees, flexible credit limits | ⭐⭐⭐⭐⭐ | Check My Eligibility |
| American Express Business Gold Card (Charge Card) | High reward rates, comprehensive travel benefits | ⭐⭐⭐⭐⭐ | Check My Eligibility |
| Metro Bank Business Credit Card | Low APR, suitable for carrying a balance | ⭐⭐⭐⭐⭐ | Check My Eligibility |
| Amazon Business Prime American Express Card | High rewards for Amazon purchases, extended payment terms, welcome offer, additional employee cards. | ⭐⭐⭐⭐⭐ | Check My Eligibility |
| Santander Business Cashback Credit Card | Cashback on purchases, low annual fee | ⭐⭐⭐⭐⭐ | Check My Eligibility |
| Barclaycard Select Cashback Credit Card | Straightforward cashback scheme, no annual fee | ⭐⭐⭐⭐ | Check My Eligibility |
| RBS Business Plus Credit Card | Competitive interest-free period, purchase protection | ⭐⭐⭐⭐ | Check My Eligibility |
| American Express Basic Charge Card | No-frills charge card option | ⭐⭐⭐⭐ | Check My Eligibility |
| Juni Business Card | Virtual cashback charge card for e-commerce companies | ⭐⭐⭐⭐ | Check My Eligibility |
Learn More
Read our articles on the best credit cards for startups, best interest-free, best credit cards for air-miles, and best international credit cards
Alternatives to Business Credit Cards
Business Charge Cards
Best For: Businesses that can reliably pay off their balance in full each month and seek flexible spending without preset limits.
Key features
No preset spending limit; spending capacity adjusts based on your financial health.
Requires full payment of the balance each month.
Often includes rewards and benefits similar to business credit cards.
Comprehensive expense tracking and reporting tools.
One major advantage of charge cards is the elimination of interest charges, as these cards require full payment each month, unlike business credit cards that accrue interest on carried balances.
Additionally, charge cards offer greater spending flexibility due to the lack of preset limits and provide detailed expense tracking, which aids in budgeting and financial planning.
However, the strict payment terms can strain cash flow if not managed carefully, as charge cards do not allow you to carry a balance forward.
Missing a payment can result in high fees, which can be more severe than the interest charges on a business credit card balance.
Overdrafts
Best For: Businesses needing short-term, flexible access to additional funds to manage cash flow gaps.
Key features
Linked to a business current account, allowing you to overdraw up to an agreed limit.
Interest is charged only on the amount overdrawn.
Provides a financial buffer for unexpected expenses or shortfalls.
Overdrafts charge interest only on the amount overdrawn, which can be more cost-effective than paying interest on the entire balance of a business credit card.
They also offer flexible access to funds when needed, similar to business credit cards, but with the added benefit of paying only for what you use.
On the downside, overdrafts can have higher interest rates compared to business credit cards, especially with frequent use.
Additionally, the credit limit on an overdraft is usually lower than what business credit cards offer, which may limit its usefulness for larger expenses.
Business Loans
Best For: Businesses needing a lump sum for significant expenses or investments, such as equipment purchase, expansion, or major projects.
Key features
A fixed amount of money borrowed and repaid over a set period.
Can be secured (backed by collateral) or unsecured.
Fixed or variable interest rates.
Predictable monthly payments.
Business loans offer higher sums than credit cards, making them ideal for large investments or projects.
Loans have fixed repayment schedules, which aid in budgeting and financial planning, unlike credit cards with variable interest rates.
However, loans provide a lump sum upfront, and you can’t increase the amount without reapplying.
The application process is more time-consuming and requires extensive documentation and financial review.
Frequently Asked Questions (FAQs)
What does APR mean?
APR stands for Annual Percentage Rate. It is a financial term used to describe the annual cost of borrowing money, expressed as a percentage.
APR is a comprehensive measure that includes not only the interest rate but also any fees or additional costs associated with the transaction.
APR is commonly used for credit cards (as with the examples on this page), as well as mortgages, car loans, and other types of credit.
For example, when comparing two credit card offers, the one with the lower APR generally represents the better deal, assuming all other terms are equal.
What types of APR can be applicable to credit cards?
When it comes to credit cards, several types of APR (Annual Percentage Rate) can be applicable. These include:
Purchase APR: The interest rate applied to purchases made with a credit card.
Variable APR: The interest rate that can change over time based on an underlying benchmark interest rate or index, such as the prime rate.
Cash Advance APR: The interest rate charged on cash advances taken from a credit card.
Balance Transfer APR: The interest rate applied to balances transferred from one credit card to another.
Introductory APR (Teaser Rate): A temporarily low APR offered at the beginning of a credit card agreement.
Ongoing APR: The standard interest rate applied after any introductory or promotional rates have expired.
Penalty APR: A higher interest rate that is applied if you violate the terms of your credit agreement, such as making a late payment.
How can I find the right credit card for my business?
Finding the right business credit card involves assessing your business needs and comparing different options.
Consider factors such as the credit card’s interest rate, credit limit, annual fees, rewards programme, and any additional benefits that align with your business goals.
Research and compare different credit card issuers, their terms, and customer reviews to make an informed decision.
Consulting with a financial adviser or fellow business owners for insights and recommendations can be helpful.
How does the application process for a business credit card work?
The application involves submitting business information and financial statements, the owner’s personal credit check, verifying documentation, and applying online or in-branch, followed by the issuer for approval over typically 2 days to 2 weeks.
What credit score do I need to get approved for a business credit card?
Most issuers prefer good to excellent personal credit scores of 670 and above for the business owner, while those with scores below 650 may face greater difficulty getting approved.
Do business credit cards affect my personal credit?
Although opened in the company name, small business cards may require a personal guarantee, so late payments can lower your personal score and high balances can negatively impact the overall picture of your credit usage.
Can I get a business credit card if I have a low credit score?
Yes, some credit card companies do offer business cards to those with low credit scores, but the terms may not be as favourable.
They might have higher interest rates, lower credit limits, and fewer rewards.
Does using a business credit card build credit?
Yes, using a business credit card can help build your business credit profile.
Timely payments and responsible use can improve your credit score, making it easier to obtain loans and better credit terms in the future.
It’s important to ensure the card issuer reports to commercial credit bureaus to benefit your business credit history.
Can freelancers or self-employed individuals apply for a business credit card?
Absolutely. Freelancers, sole proprietors, and self-employed individuals can apply for a business credit card.
In fact, having a business credit card can help separate personal and business expenses, making accounting and tax preparation easier.
Can I get more than one business credit card?
Yes, you can hold multiple business credit cards.
Having more than one card could help you maximise rewards across different spending categories or give you backup options in case of emergencies.
Is it OK to max out a business credit card?
Maxing out a business credit card (meaning you spend up to your credit limit) is not recommended as it leads to high credit utilisation, which can negatively impact your business credit score.
A good practice is to keep your credit utilisation below 30% to maintain a healthy credit profile.
Should I pay off my business credit card every month?
Yes, you should pay off your business credit card every month to avoid interest charges and maintain a healthy credit profile.
What perks can I get with a business credit card?
Business credit cards often come with perks and benefits designed to cater to business needs.
These may include travel rewards, airline lounge access, expense management tools, dedicated customer support, and discounts on business services or products.
Carefully review the perks different credit cards offer to find the ones that align with your business priorities.
