Compare the best and cheapest business credit cards

7 min Read Published: 05 Jun 2024

Compare the best and cheapest business credit cardsA business credit card is similar to a personal credit card but is designed to be used by a business rather than an individual. It can be a great tool to earn rewards points, spread the cost of purchases and manage cashflow. On this page, you can find the top business credit cards in the UK, plus all the key information you need to know about using one.

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What is a business credit card and how does it work?

You can usually apply for more than one card on the account which means you can issue cards to employees in your business if you wish to. The account will have an overall credit limit but limits are typically higher than on a standard credit card. Credit card repayments are made each month and, if the balance isn’t paid off in full, interest will be charged. Whether a business credit card can affect personal credit will depend on the type of business you run. If you are a sole trader, you will have responsibility for the debt so if you are late with payments or are unable to pay back the amount borrowed, your personal credit is likely to be affected. If, on the other hand, the business is a limited company your personal credit won’t be affected as the credit is borrowed against the name of the company.

Which business credit card is best for you?

You can use Money to the Masses partner Creditec* to quickly build a list of the credit cards that match up with your needs. By simply adding in a few basic details, you will get a tailored collection of the best credit cards for you. You can use your Creditec* results to check how likely you are to be accepted for a certain card, which cards available to you offer the best rewards or find out what option will leave you with the lowest fees to pay. Creditec* is able to check your eligibility without running a full credit check, which means your credit score will not be affected. Click this link to start your comparison*.

Which are the best business credit cards? - June 2024

Name of card  Representative APR Annual fee Perks  Best for
 

Metro Bank Business Credit Card

18.9% variable £0 Free transactions in most European countries Relatively low rate and no fee
 

Santander Business Cashback Credit Card

23.7% variable £30 1% cashback on all business spending, no foreign transaction fees on purchases in local currency Those looking for cashback on day-to-day business spending
 

Barclaycard Select Cashback Business Credit Card

27.5% variable £0 1% cashback on purchases, access to accounting software from FreshBooks, rewards with selected retailers Those looking for good functionality to help manage spending and cashback
 

Capital on Tap Business Credit Card

From 15.5% £0 1% cashback on every £1 spent, no foreign exchange or UK ATM charges, credit facility £1,000 - £250,000 Low rates for some small businesses and no annual fee
American Express Business Gold Card N/A (charge card) £195 (no annual fee in first 12 months) Earn 20,000 Amex points if you spend more than £3,000 in the first 3 months

Earn 1 Amex point for every eligible £1 spent, double points on American Express travel and an additional 10,000 points per quarter if your business spends £20,000+ per quarter

Businesses looking for flexible rewards
 

American Express Business Platinum Credit Card

N/A (charge card) £650 Earn 40,000 Amex points if you spend more than £6,000 in the first 3 months

1 membership reward point per £1 spent, access to more than 1,200 airport lounges worldwide

Those looking for flexible reward points that can be redeemed against both travel and retail

Best business credit card for small businesses

Capital one on tap credit card Capital on Tap Business Credit Card

  • Best for: Businesses looking for a low-cost option
  • APR: From 15.5%
  • Introductory offer: No introductory offers
  • Perks: 1% cashback for every £1 spent, no foreign exchange or UK ATM charges, credit facility of £1,000 - £250,000, unlimited free supplementary cards
  • Annual fee: No annual fee (£99 per year to upgrade to the Capital on Tap Business Rewards credit card)
  • Why we like it: Rates could be as low as 15.22%, depending on your individual business

Best business credit card for medium businesses

Santander Business Cashback credit card Santander Business Cashback Credit Card

  • Best for: Those who already have a Santander Business current account
  • Representative APR: 23.7% variable
  • Introductory offer: No introductory offers
  • Perks: 1% cashback on all business spending, no foreign transaction fees on purchases in local currency, free supplementary cards available
  • Annual fee: £30
  • Why we like it: It balances a relatively low annual fee with the potential to earn a decent level of cashback, particularly if you have several cardholders

Best business credit card with no fee

Metro Bank Business credit card Metro Bank Business Credit Card

  • Best for: Those looking for a no-fee, low-rate credit card and existing Metro Business current account holders
  • Representative APR: 18.9% variable
  • Introductory offer: No introductory offers
  • Perks: Free transactions in most European countries
  • Annual fee: No annual fee
  • Why we like it: It's a simple card with a low-interest rate, with the added bonus that you can apply in branch and walk out with the card on the same day

Best business credit card for rewards

The American Express Business Gold Card American Express Business Gold Card

  • Best for: Businesses looking for flexible rewards
  • Representative APR: N/A (charge card)
  • Introductory offer: Earn 20,000 Amex points if you spend more than £3,000 in the first 3 months
  • Perks: Earn 1 Amex point for every eligible £1 spent, double points on American Express travel and an additional 10,000 points per quarter if your business spends £20,000+ per quarter
  • Why we like it: Although it attracts a high annual fee, the membership rewards points are flexible and can be used for buying computers for the office or taking clients out, as well as for air travel

For a review of other cards in the American Express range, read our article "Which is the best American Express credit card?"

Best business credit card for cashback

Barclaycard Select Cashback Business credit card Barclaycard Select Cashback Business Credit Card 

  • Best for: Those looking for a good basic rate of cashback, with the additional perk of free accounting software from FreshBooks
  • Representative APR: 27.5% variable
  • Perks: 1% cashback on all purchases, FreshBooks accounting software
  • Annual fee: £0
  • Why we like it: The cashback element is complemented by other rewards and is unlimited

Partner Spotlight

Compare credit card deals

We’ve teamed up with Creditec

  • Find out what credit cards you are eligible for
  • This will not affect your credit rating
  • 26.5% APR Representative (variable)

Powered by
Check your eligibility*

How to make the most of a business credit card

You may find a business credit card useful for managing cash flow or making purchases for your company over the phone or online. Business credit cards are also a good way of separating your business finances from your personal finances and some have the added benefit of helping you to track and manage your spending.

These cards can also be useful for managing your employees’ expenses. Employees can use a business card to pay for work-related purchases rather than having to make an expense claim which can help save time and resources. A business credit card can also help build up a credit profile, which is particularly important if the business is new.

What to consider before getting a business credit card

Before applying for a business credit card, it is important to consider the following:

  • Interest rates - Check what interest rate you will be charged as the APR on business credit cards can be much higher than on personal credit cards.
  • Spending habits - It’s important to consider how you and your employees plan to use a business credit card. If you won’t be able to pay off the balance in full each month, try to choose a card with a lower APR. If, on the other hand, you can afford to clear the balance each month, you may want to opt for a card that offers rewards and other benefits.
  • Fees and charges - Many business cards charge an annual fee so make sure this is affordable. Also check fees for late payments, exceeding the credit limit, foreign transactions and cash withdrawals.
  • Interest-free days - Most business credit cards give you up to 56 days’ interest-free on purchases, providing you pay your balance in full and on time. However, some give you less than this and others give you more, so check carefully.
  • Minimum payments - These are often set at very low levels so always try to pay off more than the minimum each month if you can.
  • Extra perks - If you are looking for a card that offers rewards, choose benefits your company will make full use of. For example, if your business travels regularly, Avios or other flight rewards may suit you best.
  • Eligibility - If your business is new and hasn’t built up a credit profile, you may not qualify for certain credit cards. Your business’ credit profile can also affect the APR you are offered - lenders only have to offer the advertised APR to 51% of applicants. Keep in mind too that with some credit cards, you may be required to open a bank account with the same lender.

Pros and cons of a business credit card

Here are the key advantages and disadvantages of using a business credit card:

Pros of business credit cards

  • A business credit card can help with cash flow problems, for example, if an invoice hasn’t been paid. Most credit cards offer around 56 days interest-free on purchases.
  • You can separate personal finances from your business finances.
  • You can usually take advantage of a higher credit limit than on a standard credit card.
  • A business credit card can make work expenses easier to manage.
  • Some credit cards allow you to earn rewards or cashback.

Cons of business credit cards

  • With a personal credit card, purchases over £100 and up to £30,000 are protected under section 75 of the Consumer Credit Act. Unfortunately, this protection does not extend to business credit cards. For more information about Section 75, read our article Section 75 of the Consumer Credit Act explained.
  • Annual fees and interest rates can be high.
  • Stringent checks are carried out when applying for a business credit card. Start-ups and new businesses without a credit history may find it harder to get accepted.
  • You are still personally responsible for the debt if you are a sole trader.

Alternatives to a business credit card

If you are not sure a business credit card is right for you, you could also consider a business charge card. These allow you to make purchases in the same way as a credit card but there is no credit facility which means you will need to pay off your balance in full each month. Business charge cards do not usually have a limit on how much you can spend and do not have an APR as you cannot use them to borrow money.

However, be aware if you do not manage to pay off your balance in full, you will have to pay hefty fees as well as interest and this can affect your credit rating. On the plus side, business charge cards often offer benefits and rewards such as travel insurance, concierge services, access to airport lounges and cashback.

Alternatively, if you need long-term funding, a business loan might be a better option as this can work out to be a cheaper way to borrow.

 

 

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