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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Meet Richard: the small business owner helping people to find their dream holiday home

Meet Richard: the small business owner helping people to find their dream holiday home

Written by Lucinda O'Brien, savings expert17 December 2024

Fact Checked

Richard Young officially launched selfcatering.co.uk in 2024 and it’s already gaining momentum thanks to his digital marketing skills.

Richard Young uses SEO and paid traffic to boost business growth

Business name: selfcatering.co.uk
Industry: Hospitality and travel
Founded in: January 2022
Top business product: Business credit card
Key learning: “It’s better to try something and see whether it works, than not try at all.”

If you want to start a business, then sometimes you just need to get up and go for it.

This is the lesson from Richard Young, who co-founded selfcatering.co.uk, after managing his own self catering properties for years. The online business helps people find their dream holiday cottage by working with rental companies across the UK. The website currently has thousands of properties available for people to browse.

Here, Richard shares his business story and highlights the challenges and opportunities that come with an online business.

What motivated you to start your own business?

I’ve been working with self catering properties in the West Midlands since 2008, and I was keen to create a new website that would offer a handpicked, curated collection of holiday cottages. Then, I had the opportunity to start self-catering.co.uk with my co-founder. The domain already existed but it hadn’t been used for years, so I got it up and running from scratch.

When did you start trading?

Officially we launched the business this year, but I’ve been testing the domain since January 2022 to see what would work best on the website. I’ve been doing SEO for more than two decades and I’ve worked with various companies throughout the years, so these skills have really helped to grow the business. I also have two full-time developers that work on selfcatering.co.uk and we hire freelancers for copywriting.

What have been the main challenges you’ve faced so far?

The main challenge was trying to find out what worked in terms of driving traffic to the website. At the moment we split our focus between paid traffic - PPC - and organic SEO, which focuses on keyword research and on-page SEO techniques to increase traffic.

Obviously, the paid side of things needs to be funded and it can be trial and error to find out what works. One of the things we discovered was the difference between mobile and desktop traffic. This influenced our paid campaigns because people weren’t booking a holiday costing thousands of pounds on their mobile. So we had to pivot our campaigns to suit our customers.

How did you determine your initial funding for the business?

Well, I worked for the minimum amount of money as possible, and tried to do as much work myself before hiring the developers. Initially, I created the website through Wordpress which allowed me to test the waters. This was a slower process than if I had hired someone immediately, but it meant I could keep on top of the costs involved in setting up the business.

Were there any financial products that helped to get your business off the ground?

I did all the usual stuff like set up a business bank account with NatWest, buy business insurance with Hiscox and get a business credit card via Capital On Tap. The business credit card is great as the majority of our spending is on PPC so it means our everyday spending can earn rewards with Capital on Tap. We’ve done quite well with the rewards but we’ve also spread our options by having an Amex too.

Insurance is trickier as we’re an online business. We have public liability insurance and it’s difficult to know exactly all the risks we might encounter, so it’s important that the insurance covers a range of scenarios.

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Is there anything you wish you’d known sooner in terms of starting the business?

Yes, there are plenty of free things available! When you sign up with Google or Bing there is an opportunity to get some free ad credits, so always make the most of that. If you are starting an online business I would really recommend doing your research and taking advantage of the freebies that are available. It’s also a good idea to join Facebook groups in your industry and ask other business owners if they have any tips about starting out.

What’s next for your business?

Our focus is on growth. We want to hire more people and bring more properties to selfcatering.co.uk. I’m keen to attract more inner city properties in the UK and I’m looking at launching a similar product in the US.

What would you say to someone who’s thinking about starting a business?

Start - don’t wait! I think a lot of people are waiting for the perfect moment and that might never happen. It’s better to try something and see whether it works, than not try at all. With selfcatering.co.uk we started with properties in one area and then expanded our offering once we knew what worked. This taught me you shouldn't be afraid to start with a niche and then build your business from there.

This case study is for informational purposes only and is not intended as financial or professional advice. The results described are specific to the individual's personal experience, so please consult with a qualified professional if you need financial advice.