A business credit card can be a flexible way for businesses to borrow money, but which should you choose?

To help you decide, we’ve reviewed the top business credit cards available in the UK and compared their features, benefits, and terms.

Best Business Credit Cards in the UK 2024
Capital-on-Tap-Business-Credit-Card

Capital on Tap Business Credit Card

(Best Overall)

The Capital on Tap Business Credit Card is our top overall pick due to its impressive range of benefits tailored to small businesses, a competitive 1% cashback reward scheme, and flexible credit limits.

Features

Card Summary

Read our full Capital on Tap review

American Express Business Gold Card: Best Business Credit Cards in 2023

American Express Business Gold Card

(Best Business Charge Card with Rewards)

The American Express Business Gold Card is designed to reward your business spending with flights, hotels, shopping discounts or charitable donations.

As this is a charge card rather than a credit card, you must repay the full balance each month. 

Features

Card Summary

>>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.
Metro Bank

Metro Bank Business Credit Card

(Best for European Travel)

Metro Bank’s Business Credit Card is designed to effectively manage your business’s spending, offering a streamlined service with a focus on simplicity and accessibility.

Features

Card Summary

 Amazon Business Prime American Express® Card: Best Business Credit Cards in 2023

Amazon Business Prime American Express Card

(Best Business Credit Card for Amazon Rewards)

The Amazon Business Prime Credit Card from American Express offers higher rewards for Amazon purchases and the option to extend payment periods by 90 days, improving cash flow.

However, note that the APR is high.

Features

Card Summary

Santander Business Credit Card: Best Business Credit Cards in 2023

Santander Business Cashback Credit Card

(Best for Small Business)

The Santander Business Cashback Credit Card offers a rewarding way to manage your spending, with features aimed small and medium-sized businesses and a low annual fee.

Features

Card Summary

Barclaycard Select Cashback Credit Card: Best Business Credit Cards in 2023

Barclaycard Select Cashback Business Credit Card

(Best for Cashback)

The Barclaycard Select Cashback Credit Card offers business owners a rewarding cashback scheme and other perks, such as free insurance coverage.

Features

Card Summary

>>Read my full article on Barclaycard Business Credit Cards

RBS Business Credit Card: Best Business Credit Cards in 2023

RBS Business Plus Credit Card

(Best for Managing Spend)

The RBS Business Plus Credit Card offers different levels of cashback depending on the type of purchase, up to an annual limit.

While it does have an annual fee, it also comes with access to a free app to help businesses manage their spending.

Features

Card Summary

The American Express® Business Basic Card: Best Business Credit Cards in 2023

The American Express Business Basic Card

(Best for a Basic Charge Card)

The American Express Business Basic Card is designed to provide businesses with the essential features they need for making purchases, offering flexible spending power and no annual fee.

It is a charge card that offers convenience and control to business owners.

Features

Card Summary

Juni Business Virtual Charge Card

Juni Business Virtual Charge Card

(Best for E-commerce)

Juni’s virtual business charge card is designed for e-commerce businesses.

This card provides cashback, easy integration with numerous platforms, and quick virtual card creation.

This is a charge card not a credit card so the balance needs to be repaid in full each month. 

Features

Card Summary

What’s our methodology?

What is a Business Credit Card?

A business credit card is a flexible way to borrow money up to a pre-set credit limit.

It functions similarly to a personal credit card but is tailored to meet the needs of businesses.

It provides a line of credit that allows businesses to make purchases, manage expenses, and build a credit history separate from personal finances.

A business credit card differs from a prepaid business card in that a business credit card offers a line of credit to make purchases and withdraw cash, accruing interest if the balance is not paid in full, whereas a prepaid business card requires loading funds in advance.

How Does a Business Credit Card Work?

A business credit card works by providing businesses with a revolving line of credit. Once approved, you can use the card to make purchases for your business, pay bills, and cover other expenses.

The credit card issuer sets a credit limit, which is the maximum amount you can borrow. You can make payments on the card either in full or in minimum monthly instalments, and any remaining balance incurs interest charges.

Business credit cards may also offer additional perks and rewards tailored to business needs.

Do I Need a Business Credit Card?

Having a business credit card can offer several advantages for your company.

It helps separate your personal and business expenses, simplifies accounting and expense tracking, and allows you to build a credit history for your business.

Business credit cards often come with various perks, such as cashback on your everyday spending, travel benefits, and expense management tools.

Who Can Get a Business Credit Card?

Business credit cards are typically available to various types of businesses, including sole proprietorships, partnerships, corporations, and limited liability companies (LLCs).

The specific eligibility requirements may vary depending on the issuer, but generally, you will need to have a legitimate business with a certain level of income or revenue.

Some issuers may also consider your personal credit history and financial situation when evaluating your application.

Pros and Cons of Business Credit Cards

Pros:

  • Manage short-term expenses and cash flow during uneven revenue periods.
  • Earn rewards like cashback, travel rewards, and points per pound spent.
  • Easily track and categorise business spending.
  • Build a strong credit history with timely repayments.
  • Control business spending with free employee cards and customisable limits.
  • Get protections like extended warranties, travel insurance, and fraud protection.
  • Access quick capital for small businesses.

Cons:

  • High interest rates can accumulate on balances carried month to month.
  • Easy access to funds can lead to overspending and debt.
  • Personal liability for business debts can impact your personal credit score.
  • Rewards can be complex and require management.
  • Annual fees may outweigh the benefits depending on card usage.
  • Foreign transaction fees can add up.
  • Limited consumer protection against billing errors or disputes compared to personal credit cards.

How Do I Apply for a Business Credit Card?

To apply for a business credit card, you typically need to provide information about your business, such as its legal name, address, and tax identification number.

You may also need to provide financial statements, proof of income, and other documentation depending on the issuer’s requirements.

The application process can often be completed online.

Business Credit Card Eligibility Check

There are a few main criteria you’ll usually need to meet to be eligible for a business credit card in the UK, although different credit card issuers may have their own specific policies.

  1. Business type: Eligibility depends on business type, with preferences or restrictions for certain industries or structures.
  2. Business age: Credit card issuers often require the business to be operating for a few months to a year.
  3. Turnover and financials: Issuers assess annual turnover, profit margins, and cash flow to determine creditworthiness.
  4. Personal credit history: For small businesses, the owner’s credit score can impact approval chances.
  5. Debt-to-income ratio: A favourable debt-to-income ratio indicates the business can manage additional credit.
  6. Legal entity and company registration: The business must be a registered legal entity with a unique company registration number.
  7. Documentation and verification: Issuers may require bank statements, filed accounts, or tax returns to verify financial standing.
  8. Other factors: Additional considerations may include industry, number of employees, and trading history.

The Best Business Credit Cards in the UK (2024)

As of May 2024, here’s what we think are the best deals for different needs, like low fees and interest rates, or cashback and rewards.

Card NameKey FeaturesRatingRegister
Capital on Tap Business Credit CardCompetitive rewards programme, low fees, flexible credit limits⭐⭐⭐⭐⭐Check My Eligibility
American Express Business Gold Card (Charge Card)High reward rates, comprehensive travel benefits⭐⭐⭐⭐⭐Check My Eligibility
Metro Bank Business Credit CardLow APR, suitable for carrying a balance⭐⭐⭐⭐⭐Check My Eligibility
Amazon Business Prime American Express CardHigh rewards for Amazon purchases, extended payment terms, welcome offer, additional employee cards.⭐⭐⭐⭐⭐Check My Eligibility
Santander Business Cashback Credit CardCashback on purchases, low annual fee⭐⭐⭐⭐⭐Check My Eligibility
Barclaycard Select Cashback Credit CardStraightforward cashback scheme, no annual fee⭐⭐⭐⭐Check My Eligibility
RBS Business Plus Credit CardCompetitive interest-free period, purchase protection⭐⭐⭐⭐Check My Eligibility
American Express Basic Charge CardNo-frills charge card option⭐⭐⭐⭐Check My Eligibility
Juni Business Card Virtual cashback charge card for e-commerce companies⭐⭐⭐⭐Check My Eligibility

>>Read our articles on the best credit cards for startups, best interest-free, best credit cards for air-miles, and best international credit cards

Alternatives to Business Credit Cards

Business Charge Cards

Best For: Businesses that can reliably pay off their balance in full each month and seek flexible spending without preset limits.

Features:

  • No preset spending limit; spending capacity adjusts based on your financial health.
  • Requires full payment of the balance each month.
  • Often includes rewards and benefits similar to business credit cards.
  • Comprehensive expense tracking and reporting tools.

One major advantage of charge cards is the elimination of interest charges, as these cards require full payment each month, unlike business credit cards that accrue interest on carried balances.

Additionally, charge cards offer greater spending flexibility due to the lack of preset limits and provide detailed expense tracking, which aids in budgeting and financial planning.

However, the strict payment terms can strain cash flow if not managed carefully, as charge cards do not allow you to carry a balance forward.

Missing a payment can result in high fees, which can be more severe than the interest charges on a business credit card balance.

Overdrafts

Best For: Businesses needing short-term, flexible access to additional funds to manage cash flow gaps.

Features:

  • Linked to a business current account, allowing you to overdraw up to an agreed limit.
  • Interest is charged only on the amount overdrawn.
  • Provides a financial buffer for unexpected expenses or shortfalls.

Overdrafts charge interest only on the amount overdrawn, which can be more cost-effective than paying interest on the entire balance of a business credit card.

They also offer flexible access to funds when needed, similar to business credit cards, but with the added benefit of paying only for what you use.

On the downside, overdrafts can have higher interest rates compared to business credit cards, especially with frequent use.

Additionally, the credit limit on an overdraft is usually lower than what business credit cards offer, which may limit its usefulness for larger expenses.

Business Loans

Best For: Businesses needing a lump sum for significant expenses or investments, such as equipment purchase, expansion, or major projects.

Features:

  • A fixed amount of money borrowed and repaid over a set period.
  • Can be secured (backed by collateral) or unsecured.
  • Fixed or variable interest rates.
  • Predictable monthly payments.

Business loans offer higher sums than credit cards, making them ideal for large investments or projects.

Loans have fixed repayment schedules, which aid in budgeting and financial planning, unlike credit cards with variable interest rates.

However, loans provide a lump sum upfront, and you can’t increase the amount without reapplying.

The application process is more time-consuming and requires extensive documentation and financial review.

Frequently Asked Questions (FAQs)

What does APR mean?

What types of APR can be applicable to credit cards?

How can I find the right credit card for my business?

How does the application process for a business credit card work?

What credit score do I need to get approved for a business credit card?

Do business credit cards affect my personal credit?

Can I get a business credit card if I have a low credit score?

Does using a business credit card build credit?

Can freelancers or self-employed individuals apply for a business credit card?

Can I get more than one business credit card?

Is it OK to max out a business credit card?

Should I pay off my business credit card every month?

What perks can I get with a business credit card?