Business credit cards

The basic requirement is that you should be a sole trader, partner, or director of a registered company. Also, be aware that lenders may evaluate both your business and personal credit scores, especially for new or small enterprises. ​

Obtain and examine your business and personal credit reports to identify areas for improvement. A strong credit history can significantly boost your approval prospects.

Research a number of business credit cards to find one that aligns with your company's spending habits and financial needs. Consider factors such as interest rates, fees, rewards programs, and credit limits.

Before submitting a formal application, use online eligibility checkers to assess your likelihood of approval without impacting your credit score. This can help you avoid unnecessary ‘hard’ checks.

Prepare the required information for your application:

• Personal details: Full name, home address, and date of birth.​

• Business details: Company name, address, start date, and a brief description of your business activities. ​

Complete the application process through your chosen lender's preferred method, whether online, over the phone, or in person. Be prepared for a credit check and, if required, to provide a personal guarantee, especially if your business is new.

A business credit card allows companies to make purchases on credit and pay the balance later. You'll receive monthly statements and can choose to pay the full amount, a set sum, or the minimum – though only paying the minimum will lead to higher interest charges.

Many business credit cards charge an annual fee, so factor this into your decision. Alternatively, business charge cards have no preset credit limit but require the full balance to be cleared each month, making them ideal for businesses with larger, predictable expenses.

When choosing a card, always check the terms and conditions. Compare interest rates, fees, rewards, and credit limits to find one that suits your business's needs and spending habits.

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. 

Yes – using a business credit card can affect your personal credit, especially if you're the primary account holder or have personally guaranteed the account.

Many issuers check your personal credit when you apply, and your payment history can influence your score if you're liable for the debt.

To avoid negative impacts, use your business card responsibly: pay on time, keep your balance low, and avoid maxing out your limit.

If you’re worried about managing repayments, contact your card provider early – they may offer flexible options or help restructure your debt.

Many business credit cards offer attractive rewards programs designed to help you earn benefits on your business purchases. Common rewards include cashback, where you receive a percentage of your spending back, as well as air miles, travel points, or even shopping vouchers. 

To make the most of your rewards, it’s important to choose a business credit card that aligns with your company’s spending patterns. For instance, if your business frequently spends on travel, a card that offers travel rewards like air miles or hotel points may be ideal.

Yes, many business credit card providers allow you to check your eligibility online before submitting a full application. This process usually involves a soft credit check, which won’t affect your credit score. A soft check gives you an idea of your chances of approval.

By checking your eligibility first, you can avoid unnecessary hard credit checks, which could impact your personal credit score and your business’s financial standing.

Yes, many business credit card providers offer the option to get multiple employee cards under one account. This allows selected employees to have their own cards, while the business receives a single monthly statement for all charges. 

In addition, providers often offer spending controls, enabling you to set individual spending limits and easily monitor expenses for each cardholder. This can help streamline expense management and improve oversight of your company's spending.

No, you do not necessarily need a business current account to apply for a business credit card. 

However, having a dedicated business bank account can significantly simplify your financial management, allowing you to separate your business finances from personal transactions, making it easier to track business expenses and manage your cash flow. 

A business current account can help you stay organised, streamline bill payments, and ensure smoother financial operations for your company. Many business credit card providers may even prefer applicants with a business account, as it shows more structured financial management.

Yes, startups and new businesses in the UK can apply for a business credit card. A business credit card can be an essential tool for managing cash flow and covering initial business expenses in the early stages. 

However, as a new company, you may be required to provide additional information to demonstrate your ability to meet repayment obligations. To assess your eligibility, the provider may conduct a personal credit check (especially if you're a sole trader or have personal liability), request company financial statements, and ask for details about your business assets. 

This will help the provider determine your credit limit and the terms of your card. Keep in mind that approval may be more challenging for new businesses without an established credit history, but offering a personal guarantee or showing strong personal credit can help increase your chances of approval.

Business credit cards in the UK typically aren’t fully interest-free, but many offer an interest-free period on purchases — usually between 20 and 56 days — as long as you pay the balance in full each month.

If you carry a balance beyond the due date, interest will apply, so it's important to clear the full amount to avoid charges. Always check the card’s terms to understand the interest-free period and any fees.

Choosing a card with a generous interest-free window can help manage cash flow, especially when spreading the cost of large purchases.

The number of business credit cards you should have depends on your business's needs. If your business has varied expenses, like travel or supplies, multiple cards can help manage these categories and maximise rewards (e.g., cashback or travel points). However, it’s important to manage credit limits carefully to avoid high credit utilisation, which could affect your credit score. 

Multiple cards can also help with cash flow management by spreading out payment due dates, but make sure you can track and manage each account effectively. Ultimately, choose the number of cards that fits your business spending and financial management capabilities.

Purchases made for business purposes using your credit card, such as office supplies or travel expenses, can typically be claimed as business expenses when filing your taxes. 

It's important to keep detailed records of all transactions to ensure they are valid tax-deductible expenses. Business credit card statements can be a helpful tool for tracking and categorising these expenses for your self-assessment or corporate tax returns. 

However, interest paid on outstanding balances is generally not tax-deductible, so it's crucial to manage payments and avoid carrying a balance. It’s generally a good idea to consult with an accountant to ensure you're complying with tax laws and making the most of available deductions.

Approval times vary by provider. Some offer instant decisions, and you may even receive a digital card the same day. If additional verification is needed, approval can take a few days, and the physical card typically arrives within 5–10 working days.

To speed up the process, have the following information ready:

• Business name and trading details

• Company registration number (if applicable)

• Financial figures (e.g., annual turnover)

• Personal details for directors or partners