Best Business Credit Cards in the UK for April 2024

We conducted extensive research based on several parameters to handpick these business credit cards. We focused on the needs and requirements of UK businesses of any scale. We sourced the latest data from verifiable sources so that you can make well-informed decision for your business and employees.

Here are some of the top factors we focused on:

• Expense management and accounting integration: Every business needs to know where its money is going and prepare for tax. We looked for cards with extra features like receipt capture and a Xero integration.

• Annual Percentage Rate (APR): This could have a huge impact on your business expenses if you borrow money. We found cards with the most competitive rates, including ones with interest-free periods or no APR.

• Rewards and Cashback offers: Earning money while you spend is an attractive proposition. We selected cards with some of the most generous rewards programmes around.

• Security features: Your business worked hard to build funds—of course, you want to keep them safe. We chose cards from regulated providers with the latest security technology.

• Eligibility criteria: Clearly a card is of no use to you if your business isn’t eligible. We included cards with a variety of eligibility criteria, so there should be something for you whatever the size of your business.

• Fees: Pesky fees are the bane of any business. We’ve tried to help you as much as possible by finding business credit cards with low and transparent fees.

Business credit cards, also called “company credit cards” offer a revolving line of credit similar to a personal credit card. But it is issued in the name of your business. These credit cards are used to pay for business expenses, and help you separate your personal and business expenses.

They often improve business cashflows with interest-free periods on purchases. Timely repayments also help you build a solid business credit history. Good credit health can help you secure higher credit limits or business loans in the future.

Purchases made using a business credit card work similar to personal credit cards.

You pay interest on your outstanding balance, receive statements at the end of each billing cycle, and have to make monthly minimum payments to stay in good standing with the lender. If you manage to repay your outstanding business credit card balance in full, you are seldom charged any interest on eligible purchases. However, carrying a balance would mean accruing interest on your outstanding.

You can issue employee cards on the same account, set limits on them, and control cash flow easily.

• Cashback business credit cards: These credit cards earn you a percentage of your transactions as cashback. Some lenders will directly credit the cashback into your account every month. Capital on Tap, for example, provides 1% cashback on all spending.

• Rewards business credit cards: Some business credit cards come with attractive sign-up rewards, which are generally in the form of points. These can also be earned on purchases. Reward points can be used in many ways. You can convert them into cash, use them for travel booking or dining out, or exchange them for discounted gift cards. With Capital on Tap, you'll get exclusive offers, gift cards, and Avios points.

• Bad credit business credit cards: If you are a sole proprietor or if your business has faced financial issues leading to missed repayments in the past, it could become difficult to get approved for a business credit card. Some lenders cater to businesses with bad credit health with credit cards that have easy terms but with limited or basic features. Securing these cards can be easy, and is a good option if you want to improve your business credit score.

• Low-interest rate cards: These cards don’t charge you interest on purchases during the introductory phase or come with low APRs, especially if your business has a good credit score. For example, Capital on Tap has an interest-free period of 42 days and then a low APR of just 15.5%.

• Travel business credit cards: As the name suggests, these cards are designed for businesses that require frequent travelling. Your lender could also offer you heavy discounts on hotel bookings, flights, and restaurants. What’s more, travel cards often come with low to zero foreign exchange fees when you use your business credit card abroad.

• Frequent flyer business credit cards: These cards allow businesses to make corporate travel rewarding. Purchases on these cards earn you points, which could be used for access to airport lounges, free flights, or upgrading your employees to business class.

Applying for a business credit card could raise an inquiry into your personal or business credit report. This means you should be prepared before you start the application process to avoid having to make multiple applications.

We’ve laid out everything you need to know about the application process below.

Given their strong financials, major corporations or medium-sized businesses may find it easier to secure credit cards. At the same time, you could get a business credit card even if you are a small startup, sole trader, or don’t have a registered business.

• We also list the best credit cards for start-ups in the UK.

If you run a large corporation or work as a sole proprietor, you might eventually need to apply for a line of credit to scale operations or manage supply chains. As businesses grow, finances get complex and expense monitoring could become a cumbersome task.

Some business credit cards come with expense management features and integration with accounting software (Capital on Tap can auto-sync with Sage, Xero, and FreeAgent). Most lenders even allow you to issue cards to employees using the same account, where complete spending controls lie with the business owner. These features not only introduce transparency in business finances but also help avoid over-the-limit spending, which could attract additional fees.

If you or your employees travel a lot for work, you could go for a business credit card that rewards business travel. These cards fetch you points on flight and hotel bookings, allowing you to redeem them for fuel costs, air miles, and discounts on other travel-related expenses.

If you are a freelancer or recently started a business, it might not be on your agenda to get a business credit card right away. You can use your personal credit card for business expenses, and it is completely legal.

However, bookkeeping becomes easier if you can separate personal expenses from business costs, especially when your business grows over time.

• If you find yourself with some idle cash, consider getting a business savings account to earn interest on it.

Factors like annual fees, late payment fees, finance charges, currency conversion fees, and even statement requests contribute to the overall cost of having and using a business credit card.

Some business credit cards, like Capital on Tap, don’t charge annual fees, while others charge hundreds of pounds per year. Late payment fees range from £0 to over £10. Foreign transaction fees are usually charged as a percentage but may be waived for some cards.

As you can see, some costs are variable in nature. However, you can reduce overall costs by making timely payments every month, and not exceeding the credit limit. Some credit card issuers also let you avoid paying interest on purchases if you make the repayment in full.

The limits on business credit cards depend on several factors like your creditworthiness, business size and financials, as well as the issuer.

Some issuers offer a minimum credit limit of between £500-£1000. Some business cards come with no upper limit, subject to status. If your card has no pre-set credit limit, you can spend as much as you need to. Higher limits can be achieved with a good credit score.

There are plenty of perks for having a business credit card, from rewards to cashback. Sometimes, you can even get attractive discounts on making purchases from merchants that have links with your issuer.

Also, some providers offer statement credits to your accounts for tech purchases or for memberships with major retailers or business tools.

To find the right credit card for your business, you'll need to consider a variety of factors. Some of the most important are outlined below.

The 2024 Small Business Credit Survey from the Federal Reserve Bank revealed that 56% of the businesses surveyed had a credit card. The popularity of business credit cards continues to increase with the evolving fintech landscape that is facilitating faster approvals and easier document verification.

Credit cards were the most commonly used financing product for businesses in 2023, closely followed by loans, and then line of credit.

• Not sure whether a credit card is the right choice? We compared the three most common credit lines: explore the differences between overdrafts, loans, and credit cards.

If you don’t think a business credit card fits your needs, here are some of the other options you can consider. If your business is heavily engaged in taking customer card payments, a merchant cash advance might be a good credit option. It allows you to borrow money and repay it via a percentage of your customers’ card transactions. In the process, you pay interest until the money owed is repaid completely.

This comes down to your individual business. They could provide a flexible way to borrow money. They’re also a great way to track and control your business expenses. There are plenty of other potential benefits—employee cards, cashback and rewards, managing cashflow better, and a chance to build credit.

Freelancers can manage without a business credit card and simply use their personal cards. However, they could still benefit from a business credit card to separate their business and personal finances.

If you are looking for a comprehensive suite of perks and benefits, apply for the Capital on Tap business credit card today.

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