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 my credit record checked for a business credit card?

Yes, when you apply for a business credit card, credit card providers will typically assess both your business's credit record and your company’s overall financial health. If your business has limited or no credit history, the card issuer may also check your personal credit score to evaluate your creditworthiness.

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, business credit cards with rewards are available. These cards often offer cashback, allowing you to earn a percentage of what you spend back. Other rewards may include air miles, travel points, or shopping vouchers, depending on the card provider. Choose a business credit card with rewards that aligns with your business's spending habits to maximise the benefits.

Can several employees have their own card?

Yes, you can get multiple corporate credit cards under one account, which allows selected employees to have their own cards while the business receives a single bill. Many providers also offer spending controls, so you can set limits and monitor expenses for each card.

Do I need a business current account to apply?

No, a business current account is not a requirement to apply for a business credit card. However, having one can simplify managing your finances, making it easier to pay your bills and keep business transactions separate from personal ones.

Can I check my eligibility before applying for a business credit card?

Many providers let you check your eligibility online before applying. This typically involves a soft credit check, which won’t affect your credit score, and will give you an idea of your chances of approval prior to any application.

Are business credit cards interest-free?

Business credit cards aren’t usually interest-free. However, many providers will offer an interest-free period on purchases if you pay off the balance in full each month. If you carry a balance, interest will apply, so it’s important to check the terms.

Can I get a business current account with bad credit?

Yes, it’s possible to get a business current account even if you have bad credit, though it may be more challenging. Some banks and financial institutions offer business accounts specifically designed for people with poor credit histories. These will sometimes come with fewer features, but can still help you manage your business finances effectively. To improve your chances of being accepted for an account, you can take steps to enhance your credit history, such as paying bills on time, reducing outstanding debt, and regularly checking your credit report for errors.

How long does it take to open a business bank account?

Opening a business bank account typically takes between one and four weeks, though the process can be faster depending on the bank and your business type. Some banks even offer same-day account opening. Factors that can affect the timeline include your business structure (sole traders usually take less time), your relationship with the bank, and the application method. Some banks offer faster services, and non-residents or high-risk businesses may experience longer processing times. Once your application is submitted, the bank will conduct background checks and may contact you for additional information.

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

While it’s technically possible to use a personal current account for business transactions, it’s generally not recommended. Keeping personal and business finances separate helps you stay organised, track expenses more easily, and simplify tax reporting. If you run a limited company, using a business current account is a legal requirement because your company is considered a separate legal entity. Sole traders aren’t legally required to have a business account, but opening one can provide tailored features, such as accounting tools.

What fees can I expect with a business current account?

The fees for a business current account can vary depending on the bank and the account type. Common charges to look out for include: Monthly maintenance fees: A fixed charge for maintaining your account. Transaction fees: Costs for deposits, withdrawals, and payments. Overdraft charges: Fees for accessing overdraft facilities. International transfer fees: Charges for sending or receiving money abroad. Debit card usage fees: Costs for using your business debit card, especially abroad. Some business accounts may offer free banking for an introductory period, so it’s essential to carefully review the fee structure to find an account that matches your business needs and budget.

Are business bank accounts protected by FSCS?

Yes, business bank accounts are protected by the FSCS up to £85,000, provided the bank is FCA or PRA-authorised. For small businesses or limited companies, protection applies if the bank fails. Sole traders have combined protection with personal accounts under one £85,000 limit. For more complex claims, eligibility may vary depending on your business type. Check with your bank for specific coverage details.

Can I have multiple business current accounts?

Yes, you can have multiple business current accounts. This can be useful for managing different aspects of your finances, such as separating operational expenses from tax savings, or tracking revenue for different projects. If you run multiple businesses, separate accounts for each can simplify accounting and financial reporting.

Do I need to maintain a minimum account balance?

Whether you need to maintain a minimum balance depends on the specific business current account you choose. Some banks may require a minimum balance to avoid fees or to access certain account features, while others may be more flexible. Review the account’s terms and conditions or ask your provider directly if you're unsure.

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

Many business current accounts have limits on free transactions or cash deposits each month. Exceeding these limits may incur fees. Some accounts also cap the maximum cash deposit per day or month. To avoid extra charges, review the account terms and choose one that suits your transaction volume.

What happens if I close my business?

If you close your business, notify your bank and close your business current account. The bank will guide you through the process, which will typically involve settling any outstanding payments or fees. Any remaining funds can be transferred to a personal account or another business account.

Am I guaranteed an overdraft with a business account?

No, getting an overdraft with a business current account isn’t guaranteed. Just like with personal accounts, you’ll need to pass a credit check to be approved, and the overdraft limit offered will depend on both your financial circumstances, and the bank’s assessment of your business. If you need an overdraft, it’s a good idea to speak directly with your account provider to explore available options and understand the terms, including any fees and interest rates that could apply.

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

Your business may be eligible to use the Current Account Switch Service if it meets the following criteria: Fewer than 50 employees Annual turnover of £6.5 million or less Both your current and new banks are part of the switch guarantee scheme If you're unsure whether your business qualifies, contact your new bank for confirmation and guidance on the switching process.

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

Yes, sole traders can open a business current account, just like partnerships and limited companies. Having a dedicated account is smart as it separates personal and business finances, simplifying income tracking, expenses, and tax management. Many banks offer accounts tailored to sole traders with features like accounting integrations, invoicing tools, and business support, helping you manage cash flow and prepare tax returns more easily.

Can I use my business current account for personal transactions?

Generally, it’s not advisable to use your business current account for personal transactions. Keeping business and personal finances separate helps maintain clear records, avoid tax complications, and ensures compliance with accounting standards. Mixing personal and business expenses can lead to confusion and potential legal issues, especially when it comes to taxes and audits. Additionally, it's worth noting that many banks prohibit the use of business accounts for personal purposes.

Do I need a business account for a business loan?

Whether you need a business account for a business loan depends on the lender and the type of loan. Some banks may require you to have a business current account with them before they approve your loan application. However, certain loan programs, such as the government-backed Start Up Loan, may allow the loan to be deposited directly into your personal bank account instead. Always check the specific requirements of your lender to understand their policy on business accounts.

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?

Yes, it may be possible to pause payments on your loan account if you're facing financial difficulty. Some lenders offer a payment holiday, which allows you to temporarily pause your repayments for a set period. To request a payment holiday, contact your loan provider as soon as you experience financial hardship. It's important to communicate early to explore your options and avoid any penalties or missed payments. Always check your loan terms to understand the conditions and eligibility for a payment holiday.

Can I get a business loan if I have bad credit?

Yes, it is possible to get a business loan with bad credit, but it can be more challenging. Lenders typically look at your business’s financial health, cash flow, and overall stability, rather than just your personal credit score. However, you may face higher interest rates or stricter terms if you have bad credit.

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What is a business credit card and why do you need one?

What is a business credit card?

Written by Rachel Wait, Contributing writerEdited by Joe Phelan, Business finance editor, 13 April 2025

Fact Checked

A business credit card gives your company flexible access to funds, whenever you need them.

Business credit cards enable you to make purchases now and pay for them later.

A business credit card provides a flexible way for small businesses to borrow funds, helping them cover unexpected expenses, purchase inventory or improve cash flow. This guide takes a closer look at how they work and who can benefit most.

Key takeaways

Business credit cards let you borrow up to a pre-agreed credit limit and make flexible monthly repayments
Using a business credit card can help with cash flow management
You can often give additional cards to employees for work expenses
Some business credit cards include benefits such as cashback and travel insurance
Used sensibly, a business credit card can help you improve your business’s credit score

Earn rewards and save money with a business credit card

Compare business credit cards

How do business credit cards work?

A business credit card works much like a personal credit card, but it’s designed for corporate spending rather than personal use. Credit limits also tend to be higher, and the card is held in your company’s name, not your own.

You can use a business credit card whether you’re a sole trader, partnership or limited company.

A business credit card gives you access to a line of credit up to a pre-agreed limit. You can use your business credit card to make purchases now and pay for them later.

Each month, your credit card provider sends you a statement, outlining how much you’ve borrowed and how much you need to repay. You can either pay the minimum monthly repayment, a larger amount of your choosing, or the full balance. Repaying the full balance means you don’t pay any interest.

What are the benefits of business credit cards?

Business credit cards offer a range of benefits, including:

Cash flow management: Business credit cards can act as a financial safety net, ensuring you have sufficient funds available to cover expenses even when cash flow is tight
Extra cards: You can often issue additional cards to your employees but link them all to the same account, with just one bill to pay
Expense management: A business credit card makes it easier to manage company expenses and reduce admin. Plus, you can often set spending limits for each employee
Rewards and perks: Some business credit cards offer perks such as cashback, air miles and travel insurance
Separate accounts: A business credit card enables you to keep your business finances separate from your own, simplifying bookkeeping and tax preparation
Build business credit: Timely repayments on your business credit card help you establish a business credit score

What are the drawbacks of a business credit card?

While there are several benefits to holding a business credit card, you should also consider the downsides:

Fees can apply: You may have to pay an annual fee for your card, and fees also apply if you miss or are late meeting your repayments
Risk of debt: If you are unable to repay the balance in full each month, you can quickly build up debt, particularly as you usually pay interest on the remaining balance
Less protection: Unlike personal credit cards, business credit cards don’t offer Section 75 protection, which protects your purchases if something goes wrong
More expensive: Business credit cards can be more expensive than other types of borrowing, such as business loans
Risk of damaging your credit score: If you don’t keep up with your credit card payments, you risk hurting your credit score

How are business credit cards different from personal credit cards?

The main difference between business and personal credit cards is that your credit limit is likely to be a lot higher on a business credit card. That’s because lenders base your credit limit on your business income, not your personal income.

Business credit cards can also come with features such as additional employee cards, expense tracking tools and rewards focused on business-related expenses.

What can you use a business credit card for?

You can use a business credit card for a variety of purposes, including:

Paying bills and invoices
Managing office expenses
Purchasing new equipment or inventory
Covering travel costs
Paying for staff training
Entertaining clients

Who can get a business credit card?

You can usually apply for a business credit card whether you’re a sole trader, partnership or limited company. However, this depends on the provider, so check the eligibility criteria carefully.

Be aware that you might need to meet a minimum monthly or annual turnover requirement, and some providers might ask that you’ve been trading for a certain number of years.

All credit card providers require you to be over the age of 18 and most lenders ask that you’re a UK resident with a UK-registered business. Another common requirement is that you must open a business bank account with the provider before you can apply for a business credit card.

Can I get a business credit card as a startup?

Yes, it’s possible to get a business credit card if your company is just starting out. However, because you don’t yet have a business credit history, lenders have no way of knowing how reliable you are as a borrower and may be more reluctant to lend to you.

This means you could have fewer providers and credit cards to choose from, and you may not get the best deals. If a lender accepts your application, you could have a lower credit limit and pay a higher interest rate.

However, if your business is new, some lenders will use your personal credit score to help them decide whether to give you a business credit card. If you have a good personal credit score, your application is more likely to be successful.

How do I apply for a business credit card?

The quickest and easiest way to apply is online. But you might also be able to apply over the phone or in person (if your provider has bank branches).

When filling in the application form, you must provide both personal and business details. The provider assesses your application based on the information you give.

This includes assessing your business’s financial health and affordability to ensure you can meet the monthly repayments. Your provider also examines your business’s credit history as well as the value of your company assets to gain a better understanding of your business’s financial stability.

Information needed to get a business credit card

The information you need to provide to get a business credit card typically includes:

Company name
Company address
Business start date
Business structure (limited company, partnership or sole trader)
The sector your business works in
Number of employees
Company Registration Number (if registered with Companies House)
Countries you trade with
Annual turnover

You also need to provide personal details, including:

Full name
Date of birth
Home addresses for the past three years
Personal income
Unique taxpayer reference (UTR)
Personal details of all business partners or directors

What types of business credit cards can you get?

There are several different types of business credit card to consider:

0% interest business credit cards: Some business credit cards offer interest-free spending for several months. This enables you to spread the cost of a large purchase without paying interest provided you clear the balance in full before the 0% period ends. However, 0% deals on business credit cards are not as common as for personal credit cards, and the interest-free period is typically much shorter
Overseas business credit cards: Some business credit cards offer a range of travel perks, including travel insurance and fee-free spending when you’re overseas
Rewards business credit cards: You can often choose cashback on your spending or air miles. Some cards offer loyalty points to redeem on gift cards or for hotel stays
Bad credit business credit cards: If your business has little to no credit history, you could apply for a business credit card designed specifically to help you build credit. Responsible use of the card can help improve your business credit score and unlock better deals in the future

What are the costs of a business credit card?

As well as the interest rate on a business credit card, the following fees might apply:

Annual fee
Late payment or missed payment fees
Cash withdrawal fees
Foreign transaction fees
Fee for exceeding your credit limit

Check the terms and conditions of your credit card so you know exactly what you might have to pay.

Do business credit cards offer purchase protection?

Unlike personal credit cards, business credit cards don’t offer Section 75 protection. This means you don’t have cover for purchases of over £100 and up to £30,000 if the items don’t turn up, they arrive damaged, or the company you purchased from goes out of business.

However, many providers offer their own versions of purchase protection or insurance. This varies depending on the credit card, but you might have cover for any of the following:

Online guarantee: This protects you against fraudulent online use of the card
Misuse insurance :This covers unauthorised or inappropriate use of your card by employees
Extra fraud insurance: Some providers offer additional cover for any fraud or misuse, ensuring your business is fully protected
Travel insurance: Your business credit card might also include free travel insurance

What are the alternatives to business credit cards?

If you’re not sure whether a business credit card is the best option for your company, there are plenty of alternative ways to borrow money, such as:

Business loans: These enable you to borrow a lump sum of cash that you repay over a set term. Business loans can offer fixed monthly repayments, making it easier to budget
Asset finance: This can help you to cover the cost of machinery and equipment without paying for them upfront. Instead, you make smaller regular payments over the term of the agreement
Invoice finance: You use your business’s unpaid invoices as collateral and a finance company gives you access to a percentage of the value of those invoices. You repay the sum advanced once your customers pay up
Business overdrafts: If you have a business bank account, it might include an overdraft. This can provide a flexible way to borrow funds, but you should only use it for short-term borrowing because costs can be high

FAQs

What credit limit will your business get?

Your credit limit depends on factors such as your company’s annual turnover, its financial standing and its credit history. You’re more likely to receive a higher credit limit if your business has an excellent credit score and high annual turnover.

Does getting a business credit card improve my credit score?

That depends. Using your business credit card responsibly by staying within the limit and making timely repayments should improve your credit score after a few months. However, if you miss repayments or pay them late, your credit score could deteriorate.

What is a business credit card eligibility checker?

A business credit card eligibility checker reveals your chances of getting accepted for a business credit card without affecting your credit score.

Eligibility checkers only carry out a soft credit check on your credit file, which means it doesn’t leave a mark for other lenders to see. It then tells you the likelihood of approval for a particular credit card so you can decide whether to apply in full.

What rewards can I get with a business credit card?

Business credit cards can come with perks such as travel insurance, fee-free spending overseas, Air Miles or cashback. Consider which rewards are most likely to benefit your business and compare a range of credit cards to find the most suitable offer.

Can I get a business credit card with bad credit?

Yes, you can get a business credit card with bad credit. In fact, some providers offer business credit cards designed to help you build your business credit score over time. However, these often come with lower credit limits and higher interest rates. You might also need to sign a personal guarantee, which means you become personally responsible for repaying the debt on the card if your company can’t.

Can I use a personal credit card for business?

Yes, you can use a personal credit card for business purposes, but it’s generally better to use a dedicated business credit card for company spending. As well as helping you to track which purchases were for the business and which were for personal use, it reduces the risk of being held personally liable for the debt.

What is business credit card APR?

The APR, or annual percentage rate, is the total cost of your borrowing for a year, including interest and fees. Lenders only have to offer the advertised APR to 51% of successful applicants. This means the remaining 49% could pay a higher interest rate, depending on factors such as their credit score.

How many credit cards can a company have?

There’s no set limit. However, you may find that some providers restrict how many you can take out. If you already hold a handful of credit cards, you could find it more difficult to apply for another because lenders believe you’re relying too heavily on credit and struggling to manage your business finances.