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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Overcoming cash flow challenges: practical solutions for small businesses

Common cash flow problems and solutions

Written by Rachel Wait, Contributing writerEdited by Joe Phelan, business expert, 15 March 2025

Fact Checked

Learn more about some of the most common cash flow problems for businesses and the steps you can take to resolve them.

A business can look profitable on paper but still run into cash flow difficulties from time to time.

Effective cash flow management is an essential part of running a small business. If your business has positive cash flow, it means you have more money coming into your business than going out, making it easier to pay expenses such as rent and bills on time.

But if your cash flow is negative, you have more money going out of your business than coming in. This can make it harder to meet financial obligations, and your business could struggle to survive.

For this reason, it’s important to understand the cash flow difficulties your business might face and the steps you can take to overcome them.

7 cash flow challenges and solutions

A business can look profitable on paper but still run into cash flow difficulties from time to time. Below is a list of some of the most common cash flow problems and what you can do to resolve them.

1. Slow or late payments

Slow and late payments are one of the biggest causes of cash flow problems. After all, if your customers are late paying their invoices, this can make it harder for you to meet your own financial obligations and expenses.

How to overcome it: It’s crucial to make your payment terms clear at the start of a new contract. You could also use accounting software and invoicing tools that chase late payments on your behalf, so you don’t need to deal with it. Some apps will take electronic payments, too, making it easier for your customers to pay.

To encourage prompt payments, consider rewarding customers who pay early – perhaps by offering a discount. To take things even further, you could start charging penalty fees for late payments. But if you do this, you must make the fees clear when you draw up the initial client contract and again when you issue the invoice.

2. Poor inventory management

Having too much inventory ties up your cash and can negatively impact your cash flow. It can also prevent you from restocking with products that might sell faster and increase your sales.

How to overcome it: Carry out regular inventory checks and make a list of any items that aren’t selling well. Instead of buying more of these products, it’s best to sell them off fast, even if this means lowering the price. This helps boost your cash reserves and gives you room to stock up on products that are more likely to sell at higher prices.

You can also use inventory management software and forecasting tools to help you assess what you should produce and sell.

3. Too much debt

If your business has relied heavily on credit, such as business loans or credit cards, and you’re now struggling to meet the repayments, this can have a negative impact on your cash flow. The more you’ve borrowed, the harder this can be.

How to overcome it: The key is to get your debt repayments under control. To do this, consider consolidating your debt so that you only have one loan to repay at a lower rate of interest. This can make your repayments more manageable and improve cash flow.

It’s also crucial to speak to your lender as soon as possible if you’re struggling with debt repayments, as it may be able to come up with an alternative repayment plan for you.

4. Poor accounting and forecasting

If you don’t keep on top of your business finances, it can be impossible to know how much cash you have coming into the business, and how much is going out. As a result, you won’t be able to predict when you might face a cash flow shortage or take steps to help mitigate this.

How to overcome it: Keep accurate records of your cash inflows and outflows and update accounting information regularly.

You should create a weekly or monthly cash flow forecast to cover the next three months or even longer. This will allow you to anticipate periods of tight cash flow and potential payment challenges, giving you time to explore ways to free up cash, such as cutting overhead costs or securing new investment.

5. Lack of cash reserves

Building a cash reserve can be challenging for a new business, but without one, covering unexpected costs may put your cash flow at risk.

How to overcome it: Building a cash reserve gives you a financial cushion to manage unexpected expenses and events. Start by setting aside a small percentage of monthly revenue and increase this over time. You may need to get better at budgeting, cutting costs and allocating funding to achieve this.

6. High overheads and expenses

High costs for rent, utilities, and other expenses can put a strain on your cash flow. While investing in your business is necessary, it’s important to regularly review your expenses to identify potential savings.

How to overcome it: Review your cash flow analysis to pinpoint where your money is going. Look for cost-saving opportunities that won’t compromise your company’s values or core operations. For example, you might move to a more affordable location or switch to a supplier with lower prices while maintaining product quality.

7. Use of outdated equipment

If your business uses tired and old equipment, you could end up forking out a lot of money for repairs and replacements, which can have a big impact on cash flow.

How to overcome it: Instead of buying equipment outright, consider leasing it. This allows you to pay a smaller, fixed monthly fee, preserving your cash reserves. Leasing also ensures you have access to the latest equipment, helping to improve efficiency and streamline production.