A business charge card can bring additional flexibility to a business that already has predictable cash flow, with the potential for no pre-set spending limit plus rewards and perks such as cashback, airport lounges or breakdown cover.
A business charge card is different from a business credit card because you don’t carry a balance from month to month, you repay in full each month and you don’t pay interest, although there may be an annual fee.
The Best Business Charge Cards in the UK (2024)
As of June 2024, here are some of the best deals I’ve found on business charge cards, although the card most suitable for you will depend on the needs of your business.
Note that most high street banks will require you to have a business current account with them in order to apply for a business charge card.
Certainly! Here is the table in a format you can easily copy:
| Card Name | Key Features | Link |
|---|---|---|
| Lloyds Bank Business Charge Card | Fee-free for 12 months then low annual fee, merchant rewards | Visit Site |
| Barclaycard Select Charge Card | Competitive annual fee, good perks for small businesses | Visit Site |
| American Express Business Gold Card | High reward rates, comprehensive travel benefits | Visit Site |
| The Co-operative Business Charge Card | Comes with insurance and expense management tools | Visit Site |
| NatWest Onecard | Comes with insurance and expenses management tools | Visit Site |
Lloyds Bank Business Charge Card
(Best Business Charge Card Overall)
The Lloyds Bank Business Charge Card is designed for companies that already do their business banking with Lloyds, or are prepared to move. Unlike some other card issuers, it allows sole traders to apply.
There is an enticing introductory offer of the first year with no annual fee, plus a decent repayment period, but you must pay the card balance by direct debit from your Lloyds Business Current Account each month.
With a few rewards and perks on offer such as cashback on some purchases through Mastercard’s merchant rebate scheme, and a decent 45-day repayment period, this card is a good all-rounder which could suit a range of business types.
Key features
Fee-free for 12 months: Then £32 annual fee per cardholder.
Repayment period: 45 days.
Rewards: Earn merchant rebates with Business Savings by Mastercard, for instance, 4% cashback on hotels, 5% cashback on Microsoft.
Perks: Travel insurance, buyers’ protection insurance.
Unlimited extra cards: To manage your employee spending.
Cash withdrawals: Up to £500 per day.
Why Choose the Lloyds Bank Business Charge Card?
Free for the first year, and then charging a reasonable £32 annual fee, the Lloyds Bank Business Charge Card is not as expensive as some of the other charge cards on the market which offer rewards (such as the pricey Amex Gold).
It lets you earn cashback on business-related purchases from some merchants, and gives you 45 days to repay your balance, which may help improve your company’s cash flow.
You’ll have to bank with Lloyds to get this card, but it is currently offering a business account fee-free for a year before the £8.50 monthly fee kicks in.
This card is available to sole traders, partners or company directors. You may be required to give a personal guarantee if you have a limited company or limited liability partnership.
Looking for a Business Current Account?
Read our guide to the best business current accounts here.
Barclaycard Select Charge Card
(Best Business Charge Card for Small Businesses)
The Barclaycard Select charge card could be a good choice for small businesses, with its competitive annual fee and range of perks and rewards. These include a year of car club membership plus accounting software worth up to £260.
Key features
Annual fee: £42
Repayment Period: Up to 38 days
Insurance included: Purchase protection and cardholder misuse insurance
Perks: Free FreshBooks accounting plan
Rewards and discounts: Business healthcare, breakdown cover and a year’s free membership to Zipcar
Why Choose the Barclaycard Select Charge Card?
This card could help improve your expenses management by giving you more control and visibility over business spending.
Barclays says the Select charge card is designed for businesses that are new to using cards but want to manage employee spending in a secure way and improve their cash flow.
To apply, you’ll need to be a business owner or director who can demonstrate well-managed financial commitments and business turnover of at least £10,000 a year (actual or planned for new businesses).
American Express Business Gold Card
(Best Business Charge Card for Rewards)
The American Express Business Gold Card rewards your business spending with flights, hotels, shopping discounts or charitable donations, but the annual fee is higher than competitors and the card may not be accepted everywhere.
Key features
Fee-free for 12 months: Then £195 per year.
Rewards: Extra points for higher quarterly spending and for purchases made on American Express Travel.
Welcome bonus: Earn 20,000 bonus Membership Rewards points if you spend £3,000 in the first three months.
Repayment period: Up to 54 days.
Discounts: Airbnb, Amazon.co.uk, British Airways, BP, Deliveroo, Lidl, Nando’s, Now TV, Hackett, PayPal, Sainsbury’s, and more.
Perks: Travel insurance, business expenses solution AmexExpense.
Additional cards: Up to 20 at no extra cost.
Why Choose the American Express Business Gold Card?
The American Express Business Gold Card aims to make business spending more rewarding by offering points for purchases that you can use to make payments through PayPal or use for hotels, car hire, flights spa days, office supplies and more.
This card has no annual fee for the first year but costs a hefty £195 annually from the second year. It’s important to note that if you currently hold a Membership Rewards enrolled American Express Card or have held one in the past 13 months, you won’t be eligible for the welcome bonus.
If this card is not right for you, Amex also offers also Basic and Platinum versions of its business charge cards. It’s worth bearing in mind that, while most major retailers take American Express, it is not accepted everywhere.
Learn More About American Express
Read my detailed comparison of American Express business credit cards
How do AMEX Credit Card Rewards Work?
The American Express Business Gold Card offers 1 Membership Rewards point per £1 spent. For example, if you spend £1,000 on the card in a month, you would earn 1,000 Membership Rewards points.
These points can then be redeemed for statement credits, with each point worth around 0.5p, meaning 1,000 points would equal £5 in statement credits.
You can earn 1 additional bonus point for every £1 you spend on flights, hotels, car hire or experiences through American Express Travel.
The Co-operative Business Charge Card
(Best No-Frills Business Charge Card)
The Co-operative’s Business Charge Card is ‘no frills’, with no rewards or perks on offer, but it could improve your spending flexibility with a reasonable repayment period plus an introductory deal on fees.
Key features
Repayment period: Up to 48 days interest free as long as you repay in full monthly by direct debit.
Six months fee-free: Then £2 per card per month.
Spending limit: Subject to status.
Why Choose the Co-operative Bank Business Charge Card?
This card has a competitive annual fee of £24 for a single cardholder, and the first six months come free of charge. You get a generous 48 days to repay, however the card doesn’t come with any rewards or perks.
You can request multiple cards with pre-determined limits based on the needs of your business. To be eligible for this card, you need to be a Co-operative Bank business current account holder.
You can’t get the card as a sole trader, a partnership with two or three partners, or an unincorporated business.
The Co-operative Bank is proud of its ethical credentials, which might appeal to you if this aligns with your company culture and values.
NatWest Onecard
(Best Business Charge Card from a High Street Bank)
The NatWest onecard is a charge card designed for all your business expenses, from travel to office supplies.
You can use the card overseas, although you will incur non-sterling transaction fees.
As with many business charge cards issued by High Street lenders, you need to have a NatWest business current account to apply for the onecard.
Key features
Annual fee: £45 for the Standard Card, £75 for the Gold card.
Monthly interest: 1.6% if you don’t clear the balance in full by the due date.
Tiered late payment fees: If you fail to repay your balance on time, you’ll get a free seven-day grace period, followed by a charge calculated monthly as a percentage of the statement balance, ranging from 0.45% for 14 days to 0.7% for 28 days.
Spending management tool: Free NatWest app ClearSpend allows you to see your available balance, card limit and recent transactions, plus graph of your spending patterns.
Cash withdrawals: Up to £1,000 per day, charged at 2.95% of the transaction amount (minimum £2.95).
Travel perks: Up to £100,000 of travel accident cover if you pay for trip with the charge card. Holders of the Gold onecard also get access to a 24hr travel assistance service.
Insurance: Comes with corporate liability waiver insurance to protect against employee card misuse.
Why Choose the NatWest onecard?
If you already bank with NatWest or are prepared to move, you might consider the onecard as a good all-rounder business charge card from a trusted brand name.
The onecard comes as a Standard card or a Gold card, with the latter offering a few more perks such as more comprehensive travel insurance, but for a higher monthly fee.
It comes with free tools to help you manage card spending and analyse your expenses trends, and a bit of flexibility over repayment periods, although it soon starts adding fees if you pay late.
The NatWest onecard is a Mastercard, so it should be widely accepted by retailers.
Pros and Cons of Business Charge Cards
Business Charge Cards are Great For:
- Cash flow management: Manage your cash flow by being able to make large purchases when you need them, even if you don’t yet have the cash available. You will need enough cash to clear the balance by the due date though, or face penalty charges.
- Expenses tracking: Track and manage company expenses and employee spending so you stay on top of your business finances and improve accounting.
- No pre-set spending limit: Gives you flexibility to meet your everyday expenses with no set spending limit, as long as you repay on time.
- Earn rewards: You could get cashback, points, travel benefits, insurance, free software or other perks and rewards when your use your card.
- Build business credit: Use your card responsibly toimprove your credit profile and increase the chances of being accepted for other financial products with favourable terms.
But Be Aware Of:
- Repay in full: You can’t carry a balance from month to month, you must pay off your whole balance each month. This could be challenging depending on your typical cashflow, and means you can’t use the card to spread the cost of larger purchases long term.
- Annual fees: May be higher than you would pay for a business credit card.
- Eligibility: You may need to show a strong business and personal credit history to be approved, which could exclude new or small businesses.
- Risk of overspending: Without a pre-set spending limit, you will need to be careful not to overspend on a business charge card.
- Penalty charges: Late or missed payments could result in late fees, interest charges, withdrawal of the card and damage to your business and personal credit scores.
Business Charge Cards FAQs
What is a business charge card?
A business charge card is a payment card you can use for business expenses.
They don’t usually have a pre-set spending limit, the amount you can spend usually depends on the financial health of your business and your payment history.
There’s no interest to pay but you must repay the full balance each month, unlike a credit card where you can carry debt over from month to month and pay interest on your balance.
You may have to pay an annual fee, but you may also be able to earn rewards or other perks when you use the card.
What’s the difference between a business charge card and a business credit card?
Business Charge Cards
- Option to carry a balance from month to month, interest charged
- Usually no pre-set spending limit, but will depend on the health of your business and payment history
- Annual fee may be higher than a credit card
- May offer rewards and perks such as travel benefits
- Discipline and robust cash flow needed to clear the balance
- May have stringent approval criteria
Business credit card
- Repay full balance each month, no interest charged
- Will have a pre-set credit limit but this can change over time
- Annual fee may be lower than a charge card
- May offer rewards and perks or may offer cashback with limited other rewards
- Offers flexibility of repayments to help cash flow
- May be easier to get even if your business is new
Can anyone get a business charge card?
Different types of businesses such as limited companies, sole traders and partnerships can get a business credit card. You will usually need to have both a strong, established business and a good personal credit history.
Who is a business charge card suitable for?
If your business has large monthly expenses such as frequent travel costs or inventory purchases, and predictable cash flow, a business charge card may help you track and analyse your spending.
You can also earn rewards and other perks.
An alternative to a business charge card might be a business credit card, or a pre-paid card which you load with cash before using it.
What happens if I miss a payment?
With a business charge card, you have to repay in full each month.
If you fail to do this, you could incur late fees, and restrictions on how you can use the card, such as a reduced spending limit.
A missing or late payment could also negatively impact your business and personal credit score.
