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?

In terms of whether you need a business account for a business loan, it depends on the loan and lender. Some banks may insist that you have a business current account with them before they will accept you for a loan.

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 new businesses can get government start-up loans.

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 on the Experian website.

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 With Bad Credit

How to get a business credit card with bad credit

Written by Jessica Bown, Finance WriterEdited by Lucinda O'Brien, savings expert, 16 August 2024

Fact Checked

Taking out a business credit card generally involves a credit check. People and companies with high credit scores tend to get the top business credit cards, but there are still some deals available for those with bad credit.

Woman handing over a paper bag of veg to a customer at a fruit and veg stall

A low credit score doesn’t always mean you can’t get a business credit card.

You generally have to pass a card company’s credit check to get a business credit card. But a low credit score doesn’t always result in rejection. Find out more with our short guide on how to get a business credit card with bad credit.

Can you get a business credit card with bad credit?

Yes. There are business credit cards available to individuals and businesses with bad credit. Just don’t expect to qualify for the business credit cards offering the best rates and benefits.

If you have a business bank account with a bank or building society that also offers business credit cards, you may even be able to avoid undergoing a hard credit check altogether.

This is because your account provider can use the information it has on how you manage your business bank account, together with a soft credit check, to determine your suitability.

In most cases, however, card providers do conduct a hard credit check on both you and your business when you apply for a business credit card.

If you know you have a less-than-perfect credit history, it’s sensible to check your credit file before applying for a business credit card. You should also ensure you only apply for cards designed for people with lower credit scores.

That way, you avoid rejected applications causing further damage to your credit rating.

Earn rewards and save money with a business credit card

Compare business credit cards

What is a soft credit check?

A soft credit check is a less intrusive assessment of creditworthiness than a hard credit check, which is visible on your credit file.

It’s the type of credit check conducted by eligibility checkers. A soft credit check tells you which financial products you’re likely to get. It typically remains visible on your file for 12 months but only to you. Lenders don’t see soft credit checks, so they don’t affect your credit score or likelihood of getting a particular credit card or loan.

How to check your business credit report

Companies, like people, have credit scores based on their financial history, including how much they borrow and how they manage their accounts.

If you’re unsure of your business’s rating, you can check your business credit report in the same way as your personal credit file.

To do this, you need to:

Contact the three leading credit reporting agencies - Experian, TransUnion and Equifax – and ask for a copy of your business credit report.
Check your reports carefully to ensure that all the information is up to date, and contact the banks or companies concerned if you spot any errors.

The different agencies measure your score between 0 and 100. A ‘good’ business credit score is therefore above 70, while an ‘excellent’ business credit score is 80 or more.

Alternatives to a business credit card

Business credit cards are a great way to borrow money in the short term. But in most cases, you should clear your business credit card debts in full each month to avoid paying high interest charges.

If you need to borrow money over a longer term, you are often better off with a business loan – unless you can get a business credit card offering 0% on purchases.

Remember that loans for individuals and businesses with bad credit often have higher interest rates. If you or your company have a poor credit score, the amount you can borrow via a business loan may also be smaller.

Depending on how much you need to borrow, another option to consider is a business overdraft. These are available with most business bank accounts.

Again, your credit limit is usually dependent on your borrowing history. Business overdraft interest rates are often higher than those on personal overdrafts.

How to improve your business credit score

To improve your business credit score, ensure you:

Make loan and credit card payments on time – setting up a Direct Debit to clear at least the minimum amount each month can help with this
Keep debts down – borrowing more pushes up your credit utilisation ratio, which can negatively impact your credit score
Avoid applying for loans and cards you won’t get – rejected applications leave a hard credit check mark on your credit file
Check your business credit file – mistakes and outdated information can damage your credit rating
Consolidate debts – having a single loan or credit card can make it easier to manage your business finances