How long does it take to get a business credit card?

Depending on the provider, it could take a few days or a couple of weeks for the business credit card to arrive in the post. Once you submit your application it will need to be reviewed by the card issuer but that is normally approved quickly.

Is a credit record checked for a business credit card?

Credit card providers usually check your business's finances and credit record when you apply for a business credit card. If your business doesn't have much credit history, your personal credit history may be checked.

Does using a business credit card affect my personal credit record?

Using a business credit card could affect your personal credit card, particularly if you're the main account holder. It's best to use a business credit card sensibly, as you would a personal credit card, If you're worried about repayments you should speak to the card provider as soon as possible.

Can I get a business credit card with rewards?

Yes. You can get business credit cards that give you back a percentage of what you spend back as cashback. Others offer air miles or other rewards, such as shopping vouchers.

Can several employees have their own card?

Yes, you can get several credit cards for one account, meaning selected employees can have their own card with the business paying just one bill.

Do I need a business current account to apply?

No. Having a business current account isn't necessary to get a business credit card, but having one could make paying your bill and handling your finances easier.

Can I get a business credit card as a startup?

Yes, there's nothing to stop you from applying for a business credit card as a startup - it might be a helpful tool as you're starting out too as you try and manage your business' cash flow. But because your business is new, you may need to provide additional information to evidence that you'll be able to keep up with repayments. It will also help the provider determine your credit limit. This might mean providing a personal credit history check, company statements and details of any assets.

Can I have a business current account if I'm a sole trader?

Yes, business current accounts are available for sole traders as well as partnerships and limited companies.

Can I use a personal current account for my business transactions?

It's generally not advisable to use a personal current account for business transactions, as it can lead to complications in managing finances and accounting. If you have a limited company, then a business bank account is a legal obligation as your limited company is a separate legal entity.

What fees can I expect with a business current account?

Fees vary depending on the bank and the type of account. Common fees include monthly account fees, transaction fees, and charges for additional services.

Can I get a business current account with bad credit?

It can be more challenging to get a business current account with bad credit, but some banks may offer options specifically designed for businesses with poor credit history. Taking steps to improve your credit history and ultimately your credit report can be helpful too.

Can I have multiple business current accounts?

Yes, you can have multiple business current accounts. It can be useful for separating different aspects of your business or if you have multiple businesses.

Do I need to maintain a minimum account balance?

Whether you need to maintain a minimum account balance depends on the specific terms and conditions of the account. As with any bank account you might open, it's important to check specific terms and ask the account provider if you're still unsure.

Are there any limitations on the number of transactions or cash deposits I can make?

Business current accounts may have limitations on the number of free transactions or cash deposits you can make each month. Additional fees may apply if you exceed the limits.

What happens if I close my business, can I close my business current account?

If you close your business, you should inform your bank and close your business current account. The bank will guide you through the process, and any remaining funds will be transferred to another account.

Am I certain to get an overdraft with a business account?

There's no guarantee you'll get an overdraft with your business bank account. Just like with a personal bank account, you'll still need to pass a credit check to be approved for an overdraft facility, and the amount approved can differ depending on your circumstances. If you need an overdraft facility for your business then it's worth speaking to your account provider to see what options are available to you.

Is my business eligible to use the Current Account Switch Service?

You can use this service if your business has fewer than 50 employees, an annual turnover of £6.5 million or less, and both your current and new banks are part of the switch guarantee scheme. If you're unsure whether your business qualifies, it's best to contact your new bank for more information.

Do I need a business account for a business loan?

Some banks may insist that you have a business current account with them before they will accept you for a loan while others, such as the government-backed Start Up Loan, will transfer the loan to a personal bank account.

Do I need to be the owner of a company to get a loan?

No, you don't need to be the owner of a company to get a loan. Registered company directors can apply for most business loans.

Can my small business get a loan?

Yes, small businesses can get loans, but you may be offered different ones depending on your firm's size and revenue. For instance, only businesses that are less than three years old can get a government Start Up Loan.

Does my business have a credit record?

Yes, your business does have a credit record and it may affect whether or not your loan application will be accepted. You can find the credit score for your business through credit referencing agencies such as Experian.

Could I lose my home if my business defaults?

You could lose your home if your business defaults. It all depends on the type of loan you choose, whether it is secured against your home and if you sign a director guarantee. Always check the terms and conditions carefully before agreeing to any loan.

How long does it take to be approved?

The length of time to be approved for a business loan depends on the provider, the checks they carry out, the information they need to see and how quickly you're able to provide it. It also depends on the type of loan - for example secured loans can have longer approval times.

Is it possible to pause payments when the loan account is open?

If you experience financial difficulty during the term of your loan, you may be able to request a payment holiday. This is where repayments are paused for a period of time. You'll need to speak to the loan provider in the first instance - and you should do so as soon as you experience any financial difficulty.

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How to get a business credit card: expert tips

How to apply for and get a business credit card

Written by Dan Moore, Contributing writerEdited by Joe Phelan, business expert, 20 December 2024

Fact Checked

A business credit card can help you manage work expenses more effectively. Learn how to improve your chances of making a successful application.

A business credit card makes it easier to keep work and personal spending separate.

Any small business, whether a new start-up or a well-established company, can apply for a business credit card. However, approval isn’t guaranteed. Here’s how to improve your chances of successfully applying for one.

Key takeaways

Any small business can get a business credit card, providing they meet its requirements
It’s important to run eligibility checks before applying to avoid leaving marks on your credit report
Be careful when completing the application process – errors can result in your application being delayed or rejected

Earn rewards and save money with a business credit card

Compare business credit cards

Why get a business credit card?

If you work for yourself or run a small business, you may be eligible to apply for a business credit card. Your approval will depend on several factors, including your personal or business credit history and how carefully you complete the application.

A business credit card can be worthwhile if you value the benefits of keeping personal and work spending separate. Many businesses are drawn to the rewards, cashback, and other perks, such as accountancy software and travel insurance.

What information do you need to apply for a business credit card?

Anyone considering a business credit card should take time to collect all the information card providers are likely to need before making an application.

You’ll need to provide personal details, such as proof that you’re aged 18 or over and a UK resident, as well as information about your business, including financial details, turnover, and trading history.

What to do before you apply for a business credit card

You can increase your chances of being accepted for your chosen card by following these steps:

1. Check your credit ratings

Before you apply for a business credit card, check your credit reports for any errors that may deter card providers. If you spot any mistakes, contact the agency or agencies and ask them to make a correction.

If you have a negative mark on your credit file, such as a missed credit card payment or a loan default, it may be best to wait until it’s removed. This typically happens automatically six years after the incident was first recorded.

2. Shop around

When looking for a suitable business credit card, pay special attention to the following:

Interest rates: Compare the annual percentage rate (APR) on different cards for purchases. Note any introductory offers, what the introductory APR is, when it expires, and what the rate reverts to afterwards
Fees: Bear in mind any charges, such as annual account fees and foreign usage charges
Rewards: Look for cards that come with rewards that are relevant to you, such as cashback or air miles
T&Cs: Check whether you need to be an existing customer. Some banks will insist on this before providing a card

3. Run an eligibility check

Applying for too many credit cards can harm your credit report, so it's best to start with eligibility checks. These checks help you identify the cards you're most likely to qualify for, allowing you to narrow down your options. Once you've shortlisted the best providers, you can explore further. Eligibility checks only involve a ‘soft check’ on your credit file, which leaves no trace, unlike the ‘hard checks’ that occur when you formally apply.

How do you apply for a business credit card?

Once you’ve identified the best business credit card and gathered all the required information, you can make your application. Here are a few tips for how to boost your chances of success:

Take your time to carefully read through the application form. If possible, print it out and complete a draft version first. Rushing through the process can lead to mistakes, which could harm your chances of approval or cause unnecessary delays
If possible, keep a copy of your application, just in case the provider has follow-up questions or is unclear about anything in your submission (take screenshots if necessary)
Check you’ve sent the application to the right address. If you’re applying via email, request delivery and read receipts. If you apply by post, opt for special delivery where you get a signature on receipt
Record the application date in your diary. If you apply online, you may discover whether your application has been successful almost immediately, although it can take up to 10 working days in some instances

What should you do if your application is unsuccessful?

If your application is rejected you may still be able to get a business credit card by following these steps:

Avoid further applications for six months, as rejected applications may damage your credit score
Try to clear any debts you have and pay off the balance each month on other credit cards
Consider getting a balance transfer card if you have debts on other credit cards. This may go against the six-month rule, but failing to clear your balance each month is more damaging to your credit score
Sign on to the Electoral Roll if you haven’t done so already
Double check your credit report for errors, and ask your business partners and fellow directors to do the same if applicable
After around six months, shop around for the best cards and run eligibility checks
Consider applying for a start-up loan or grant if you need a cash injection

FAQs

Who can apply for a business credit card?

Anyone who runs a company or works for themselves can get a business credit card, including sole traders and owners or partners of a limited company.

Can you get a business credit card with no revenue?

Your company generally needs some turnover before you can get a business credit card. An income of over £2,000 may be sufficient.

Does applying for a business credit card affect your credit score?

Applications can affect your personal credit score if you’re a sole trader or don’t have much of a business credit score, and the provider runs a hard check on your personal credit report.

Applying for a business credit card can also affect your company credit report as it involves a hard check. Any adverse effect is temporary, provided you don’t make multiple applications in your company’s name.

What credit score do you need to get a business credit card?

Each of the three credit reference agencies has different benchmarks that card providers consider when assessing you for a business credit card. With Experian, for example, a business credit score of 80 to 100 is ‘excellent’, while a score of between 40 and 80 may result in a request for more information. A score below 40 may deter potential card providers or at least result in higher APRs and a lower credit limit.