Business credit cards

Compare business credit cards

A business credit card could help you manage your business expenses, earn rewards, or access flexible repayment terms.
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What is a business credit card?

A business credit card works in the same way as a normal credit card, but it’s designed for business expenses, not personal use.

A business credit card allows you to separate your business and personal expenses and build a separate business credit history. It could be used to help with regular spending and for larger, unexpected expenses.

Specifically designed for corporate needs, business credit cards often come with higher credit limits compared to personal credit cards. Many offer extra features such as employee cards, expense tracking and tailored rewards that cater to business spending.

Any registered business in the UK, whether a small business, start-up or sole trader, can apply for a business credit card.

Compare the Market has partnered with business finance provider Swoop to help you find the right business credit card to suit your needs. Swoop is a credit broker, not a lender, and will show you products offered by lenders. To apply you must be a UK resident aged 18 or over. Credit is subject to status and eligibility.

How does a business credit card work?

Business credit cards work in much the same way as a personal credit card. However, your business credit card will be in your company’s name, not your own. Your business can then borrow up to a certain limit that will be set by the credit card provider.

Many company credit card providers also offer additional cards with spending controls for partners and employees. This allows authorised cardholders to make purchases up to a set limit. The company then pays the bill.

You’ll need to pay at least the monthly minimum repayments including interest. The amount will be set out on your monthly credit card statement. However, if you can clear the full balance each month, you won’t be charged interest.

There may be a penalty fee for late or missed payments, and these could have a negative impact on your company credit rating. But using your business credit card responsibly, and making the repayments on time, could help boost your business credit score.

Business credit cards usually come with annual fees. These vary between providers, so it’s something to consider when comparing your options.

What types of business credit card are there?

There are several types of business credit cards available, each designed to meet different business needs, such as:

High-Limit Rewards Cards: these cards offer higher credit limits and cashback rewards, helping you earn on everyday business expenses.

Flexible Repayment Cards: designed for short-term financing needs, these cards provide flexible payment terms, allowing you to manage cash flow more effectively.

Swoop can help find the right business credit card for your business needs.

What are the differences between business charge cards and business credit cards?

There aren’t that many differences between business charge cards and business credit cards. They both offer a convenient way to make purchases and manage your business expenses. Charge cards, like business credit cards, also tend to offer various perks and rewards specifically tailored for corporate spending.

However, there are a few significant differences to note:

Repayments

With a business charge card, you must pay off the full balance every month. With a business credit card, you can choose to pay off the full balance, a portion, or the required monthly minimum repayment.

Pre-set spending limit

Unlike credit cards, business charge cards don’t have a pre-set spending limit. There is an undisclosed limit which is based on your company’s creditworthiness. If your business has a good credit history, you may be able to spend more than you would on a credit card.

Interest

Business charge cards don’t usually charge interest. This is because you must pay off the full balance each month. With most credit cards, if you don’t pay the full balance, you’ll be charged interest on the remaining amount.

Credit score

To be eligible for a charge card, your business will typically need to have a very good to excellent credit score. However, even if you have a bad credit score, it still may be possible to get a credit card. This would give you the chance to use the card responsibly and build up your company’s credit rating.

Availability

Business charge cards aren’t that common, whereas business credit cards are more widely available, making them easier to compare. You may also find that charge cards aren’t as widely accepted as credit cards.

Charge card or credit card: which one is right for my business?

The one that’s right for your business depends on how you want to use the card. If you want to pay off your balance gradually, a business credit card offers more flexibility.

But if you want to make a big purchase without accumulating interest, and can comfortably cover the full balance, you might prefer a business charge card.

Depending on how you manage your company’s cash flow, both charge cards and credit cards can either improve or worsen your business credit score.

Can I get a business credit card?

To get a business credit card you’ll need to meet the eligibility criteria, which can vary between providers. Some may require you to have a minimum monthly turnover and be trading for a certain number of years.

Some providers may also require you to be listed as active on Companies House and be registered as a limited company (Ltd) or limited liability partnership (LLP). So, for example, if you’re self-employed or a sole trader, you may have to look for a specific credit card that suits your business structure.

In addition to specific criteria, you’ll also need to:

Be over 18
Be a UK resident with a UK registered business
Pass the credit card provider’s credit check.

Swoop acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.

Can I get a credit card for my small business?

Yes, there are credit cards available that cater specifically to small businesses.

A small business credit card can make it easier to keep your business expenses separate from your personal spending.

A business credit card can also be a great way to build up your business credit score. Many small businesses and start-ups struggle to get credit due to a low credit history. Used responsibly, a business credit card could help get you access to better deals the future.

It’s likely that credit card providers will want to see your personal credit rating if you’re a small business owner. So, it’s worth getting a free credit check yourself before you apply.

Can I get a business credit card as a startup?

You may find it harder to get a business credit card as a start-up. That’s because some providers require that you’ve been trading for a certain number of years.

Others may want to see your personal credit rating before deciding if they should offer you a business credit card. If you have a good credit score, there’s more chance they may accept your application.

If your business is still in the early stages, it might be worth considering a start-up business loan instead of a credit card. This could provide you with vital funding to get your business up and running. As your company grows and its credit score improves, you’ll have access to better business credit card deals further down the line.

What are the benefits of a business credit card?

The right business credit card could help you manage your corporate spending more efficiently. Depending on the card you choose, it could offer the following benefits:

Build your business credit score – used responsibly, a business credit card could help your business establish a good credit history, giving you access to better deals in the future.
Manage cash flow – quick access to funds means you can pay for immediate business expenses while you’re waiting for invoices to be paid.
Streamline expenses – it makes it easier to track and process employee expenses.
Separate accounts – keeping your business and personal accounts separate simplifies your spending and makes it easier to manage.
Rewards – many business credit cards come with useful rewards such as cashback, air miles, discounted insurance and travel services.
Interest-free spending – 0% interest credit cards allow you to make bigger purchases and settle the balance within a set period without paying interest.
Higher credit limits – based on your business income, a business credit card may allow you to borrow more than you could with a personal credit card.

What are the disadvantages of business credit cards?

Before you decide if a business credit card is right for you, there are some downsides to consider:

Risk of debt – this could build up quickly if you’re unable to keep on top of your monthly repayments.
Could lower your credit score – late and missed payments could damage your business credit rating. In some cases, it may even damage your personal credit score.
Annual fees – some cards come with hefty fees which could outweigh the benefits of rewards.
Less protection – you may not get Section 75 protection if a purchase goes wrong, as you would with a personal credit card.
Can be expensive to borrow – you might find that a small business loan has lower interest rates than a business credit card.

Which is the best credit card for my business?

The best credit card for you depends on a number of factors including your business structure, activities and credit history.

For example, if you travel overseas a lot for business, you may benefit from one with rewards such as air miles and discounted accommodation.

If you have a small, local business, you may decide the best small business credit card for you is one that offers cashback or vouchers for your favourite stores.

When deciding on the best business credit card for you, consider:

The APR – typically, the higher your credit score, the more access you’ll have to low interest deals
Annual fee – Some cards don’t charge an annual fee, but these may offer less perks
Other charges – such as foreign transaction fees if you intend to use the card abroad
Rewards – make sure they’re rewards that your business will make use of
Interest free period – does the card have a 0% interest introductory period, and if so, for how long?

Frequently asked questions

Can I use my personal credit card for business use?

Yes, you could use your personal credit card for business use. But you may find it easier to keep your business and personal finances separate.

If you use your personal credit card, it won’t help you build your business credit score. This may make it harder to get credit in the future – for example, if you want to take out a business loan.

What can I use my business credit card for?

You can use your business credit card for day-to-day spending and one-off purchases. For example:

Travel costs, office supplies or paying invoices
Spreading the cost of bigger purchases
As a replacement for petty cash instead of an office float
Unexpected emergency expenses.

What rewards can I get with a business credit card?

The rewards can vary between card providers and depend on the business credit card you choose, and the amount you spend.

Popular rewards you could earn include:

Up to 1% unlimited cashback on purchases
Travel perks: Avios points, airport lounge access, VIP hotel status
Flexible rewards redemption, including gift cards
Free employee cards for team spending
Exclusive discounts and partner offers
Flexible repayment terms, supporting cash flow management

Rewards cards may come with an annual fee, although this is sometimes waived for an initial period. If you do pay an annual fee, just make sure you’ll benefit from the perks to justify it.

What are the costs of a business credit card?

As well as interest on your outstanding balance, business credit cards may charge:

An annual fee
Late or missed payment penalties
Cash withdrawal fees
Foreign transaction fees
Penalties for going over your credit limit.

Always read the terms and conditions, so you know what fees to expect.

Can I get a business credit card with bad credit?

It can be more difficult to get a business credit card with bad credit, but it’s not impossible. However, it’s likely you’ll be charged a higher interest rate and be given a lower credit limit.

But used responsibly over time, a business credit card could help you to build your business credit score.

How can I build my business credit fast?

A healthy credit score is vital for business growth. Here are some quick tips to boost your business credit profile fast:

Pay your invoices on time, every time
File your accounts and returns on time
Keep your credit utilisation low– ideally under 30%
Limit credit applications – too many over a short period of time suggest you’re struggling to secure finance
Check your credit file and correct any errors
Avoid County Court Judgements (CCJs).

What is a business prepaid card?

A business prepaid card works like a debit card. It’s preloaded with money in advance and then used for purchases and ATM withdrawals.

A business prepaid card can be a handy alternative to a credit card, especially for employees. It’s a convenient way to stay within budget as they can only spend what’s on the card.

Unlike a business credit card, a prepaid card doesn’t require a credit check, so the application process is quicker and easier.