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 your 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. A business credit score reflects your company’s ability to manage debt and repay loans, and is based on factors like payment history and outstanding debt.

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 get a business credit card as a startup?

Yes, startups can apply for a business credit card, and it can be a useful tool for managing cash flow during the early stages. However, since your business is new, you may be asked to provide additional information to prove your ability to meet repayment requirements. This could include a personal credit check, company financial statements, and details of any assets, which will help the provider determine your credit limit.

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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Cash flow management: the ultimate guide for small businesses

How to manage cash flow as a small business

Written by Rachel Wait, Contributing writerEdited by Lucinda O'Brien, senior financial editor, 14 March 2025

Fact Checked

Understanding cash flow management can be the difference between a business’s success and failure.

Cash flow management is the process of monitoring, analysing and optimising your business’s income and expenditure.

Cash flow is a measurement of the money you have coming into your business from sales, and the amount going out to pay suppliers and bills.

Managing cash flow effectively ensures you have enough cash on hand to meet your obligations, while also being able to take advantage of growth opportunities.

Key takeaways

Cash flow is the lifeblood of any business
Monitoring, analysing and optimising cash flow is essential
Managing cash flow effectively can enable you to take advantage of growth opportunities and predict when your business might face a cash shortfall
There are plenty of ways to improve cash flow, including prompt invoicing, negotiating longer payment terms, and looking for flexible finance options

What is cash flow management?

Cash flow management is the process of monitoring, analysing and optimising your business’s cash inflows (money received from sales or finance) and outflows (money spent to cover expenses).

Tracking your cash flow is essential to accurately forecast your business’s cash flow needs. You need enough cash in the bank to cover due payments, but you don’t want a surplus sitting in your bank account when it could be helping your business grow. It’s all about balance.

Why is it important to manage cash flow?

Cash flow is your business’s lifeblood. Without it, your business can’t survive. In fact, many small businesses fail within the first year due to poor cash flow management.

If you have more money going out than coming in (known as negative cash flow), you could struggle to pay bills, salaries and other expenses, and it could be difficult to stay afloat.

Understanding how to manage cash flow can enable you to meet your financial obligations on time. It can also boost your company’s creditworthiness and attract investors. Effective cash flow management indicates financial stability and a viable investment opportunity.

Also, if you can understand patterns in your cash flow, you can predict when you might have a cash flow shortage. This enables you to take steps to prevent a financial crisis. It can help you respond quickly to market changes, too, and take advantage of growth opportunities.

Cash flow management best practices

The best practices for cash flow management are:

Monitoring – It’s important to track and keep detailed records of all cash coming into and going out of your business. Then you know exactly where the money has come from and where it’s being spent. Do this from the start, so you have an accurate record of your business’s financial state
Analysing – You also need to analyse key metrics such as inventory turnover, accounts payable (money your business owes) and accounts receivable (money owed to your business) to help identify areas of improvement. Comparing cash flow performance to your historical data can help identify issues early on, so you can take steps to fix them
Optimising – This involves implementing strategies to accelerate cash inflows (such as offering discounts for early invoice payments) and managing expenses by identifying cost-saving opportunities. You may also need to consider financing options to bridge short-term cash gaps

7 strategies for managing cash flow

There are plenty of strategies to help manage cash flow – for example:

1. Invoice promptly

Getting paid quickly improves cash flow, so invoice customers promptly. Offering discounts for paying early is one way to encourage faster payments.

Automated payment methods can also make it easier for clients to pay, so you don’t waste time chasing late payments.

2. Negotiate longer payment terms

By delaying making your own payments to suppliers, you keep more cash in your business for longer, reducing the risk of a cash flow shortage. If you have a good relationship with suppliers, try asking for longer payment terms.

Alternatively, offer to pay in instalments, rather than at the end of a contract.

3. Review your inventory

Having too much inventory can tie up your cash, but if you have too little, you could miss out on sales opportunities. Carry out regular inventory reviews, so you know exactly how much stock you have and can find the right balance.

4. Invest in the right software

There’s a host of accounting software to help forecast cash flow, spot patterns and make projections. This can take some of the stress out of managing your cash flow, so compare the options.

5. Look at flexible financing options

Even profitable businesses can experience cash flow problems, so ensure you have access to flexible finance options to bridge any short-term cash gaps.

For example, invoice finance enables you to borrow against your unpaid invoices. You sell those invoices to a third party in return for up to 95% of their value upfront. The third party collects payment for the invoices from the customers directly before deducting its fee and paying you the balance.

You could also consider a business credit card to enable you to borrow funds, or a short-term business loan, which you typically repay within a year.

6. Ramp up slowly

Avoid growing the business too quickly, as this can result in cash flow shortages. Ramping up means you sell more, but you need to spend beforehand. If the time between spending more and selling more is too long, you could run into difficulties.

7. Reduce unnecessary spending

Finally, look at your company finances to see whether there’s anywhere you could cut back or negotiate a better deal. Perhaps you could save on your business energy bills or find a better deal on your business insurance.

However small the saving, it could make a difference and help you overcome any cash flow problems your business might face.