Low-interest business credit cards are an affordable way to manage business expenses, especially when you need a little more time to pay off balances.

But with so many options out there, how do you pick the right one? How do you know if the low interest isn’t the only positive point of the card you’re about to choose?

In this guide, I will break down the top low-interest business credit cards available in the UK, looking at their interest rates, benefits, and features. I aim to help you find the card that best suits your business needs.

Best Low Interest CC

Understanding the Importance of APR

The Annual Percentage Rate, commonly referred to as APR, represents the real cost of borrowing. It includes the interest rate that a lender will charge you but also every fee or additional cost associated with obtaining your loan.

When looking at credit products, especially credit cards, the APR gives you a clearer idea of how much you will pay over time.

APR’s Impact on Monthly Credit Card Payments and Long-term Debt

Monthly Payments – When choosing a credit card for your business, you might be tempted to focus on monthly credit card payments, believing it’s the most significant indication of your debt situation.

While it’s an essential factor, it’s important to understand how APR influences this amount. The APR is divided by 12 (for each month of the year) to determine the monthly periodic rate. This rate is then applied to the balance to compute the interest charged for that month.

A higher APR means a higher interest charge is added to your outstanding balance, which increases the monthly payment.

Long-term Implications – Over time, a higher APR can amplify the cost of borrowing. If you don’t pay off the full balance on a business credit card each month, interest accrues on the remaining amount. With a high APR, this interest can rise fast.

As your business continues to carry a balance, you’re not just paying interest on the principal (the original amount borrowed) but also on the interest. Over the years, this can result in paying much more than the original borrowed sum.

The Benefits of a Low-Interest Business Credit Card

The difference between, for instance, a 15% APR and a 19% APR might seem negligible. But over time, and especially with larger business balances, this difference can be substantial.

Consider a credit card balance of £50.000. With a 19% APR, if you were to make only the minimum payments, it would cost you £2.000 more each year than with a 15% APR card. Over time, the total amount paid in interest with the higher APR could be thousands of pounds more.

Seeking a lower APR leads to significant savings, even for more modest balances. It reduces your monthly interest costs, of course, but it also means that more of the payment goes towards the principal balance, helping pay off the debt faster.

What to Consider When Choosing a Low-Interest Business Credit Card?

When choosing a low-interest card, your main focus will obviously be the Representative APR. But there are several factors you need to consider. Here’s a look at factors that will help you choose the perfect card for your needs.

Introductory APR – Most credit card companies offer a promotional period, typically ranging from 6 to 18 months, where they provide an extremely low or even 0% APR.

This period can be a blessing if your business needs to make significant purchases and you require some time before you can pay off the balance. But be careful about the duration of this introductory period and what happens when it ends.

Ongoing APR – After the promotional period expires, the credit card’s regular interest rate, known as the ongoing APR, takes effect. It can vary widely between cards and issuers.

It might be tempting to go for a card that offers a great introductory offer, but always factor in the ongoing APR. This is the rate you’ll deal with in the long run, and for businesses that often carry a balance, a low ongoing APR can save you loads.

Balance Transfer Offers – Balance transfer lets you move your balance from one card (usually with a higher interest rate) to another, often with a lower interest rate. This can be an effective strategy to consolidate debt and save on interest payments.

However, there are often fees associated with balance transfers, which can offset the savings from a lower interest rate. Calculate the potential savings and costs before making your decision.

Fees – Besides interest rates, fees are the main expense to be aware of. They can take many forms.

  • Annual Fees – A yearly charge for using the card. Sometimes, the benefits and rewards the card offers justify this fee, but not always.
  • Balance Transfer Fees – A charge for transferring a balance from one card to another. This fee is typically a percentage of the transferred amount.
  • Foreign Transaction Fees – Fees charged when making a purchase in a foreign currency. This is something essential to consider if your business deals with international vendors or if you travel a lot.

Rewards and Benefits – Perks are not reserved for expensive credit cards. Surprisingly, some low-interest business credit cards also come with attractive rewards and benefits such as cashback, travel points, or discounts.

The Best Low-Interest Business Credit Cards

Credit CardAnnual FeePurchasesRep. APRApply
metro bank

£32 Per Card15.9%22%Apply
BOS Business Credit Card Mini
Bank of Scotland
£32 Per Card16.3%22.4%Apply
Business Cashback
Barclaycard Payment Select Mini
Business Select

MetroBank Business Credit Card


Best For – Fee-Free Transactions


  • No Annual Fee
  • 1% Cashback
  • Up to 56 Days of Interest-Free Purchases
  • Low Single Interest Rate on all Transactions
  • 0% Balance Transfer Fee
  • 0% Fee on Non-Sterling Transactions in Europe
  • Up to 25 Additional cards for Free
ServiceInterest Rate
Representative APR14.9%
Cash Advances14.9%

HSBC Commercial Credit Card

HSBC Commercial Credit Card

Best For – Affordable Purchases Rate


  • No Annual Fee for a Year
  • Low-Interest Rate on Transactions
  • Up to 56 Days of Interest-Free Purchases
  • The 56 Days Period Applies to Cash Advances
  • Free Additional Cards for Employees
  • Your Additional Cardholders Earn Cashback
ServiceInterest Rate
Representative APR22%
Cash Advances15.9%

Bank of Scotland Business Credit Card

BOS Business Credit Card

Best for – Low FOREX Fees


  • Up to 45 Days of Interest-Free Purchases
  • Low 3% FOREX Fee
  • Up to 20 Additional Cards for Your Employees
  • Your Additional Cardholders Earn Cashback
ServiceInterest Rate
Representative APR22.4%
Cash Advances16.3%

Santander Business Cashback Credit Card

Best For – Cashback


  • Up to 56 days interest-free each billing cycle.
  • A standard rate of 18.9%.
  • Consistent 1% cashback on all purchases.
  • Cashback is credited monthly into the credit card account.
  • No cashback limits beyond the overall credit limit of the card.
  • Per-business charging approach
  • Add up to three extra cardholders at no additional cost.
ServiceInterest Rate
Representative APR23.7%
Cash Advances27.9%

Barclaycard Business Select Credit Card

Barclaycard Payment Select Large

Best For – Rewards


  • No Annual Fee
  • Uncapped 1% Cashback, Paid Monthly
  • 2% Cashback on all BT and EE Expenses (Until 29/09/2023)
  • Free Access to Accounting Software
  • Up to 56 Days of Interest-Free Purchases
  • Outstanding Customer Support
ServiceInterest Rate
Representative APR27.1%
Cash Advances33.4%


What is a low-interest business credit card?

A low-interest business credit card is a type of credit card tailored for businesses that offers a lower interest rate on carried balances compared to typical business cards.

Why should a business consider a low-interest credit card?

How do I determine which low-interest business credit card is right for me?

Is there a difference between personal and business credit cards?

What credit score is typically needed for a low-interest business credit card?

Can startups or new businesses apply for these cards?

Can I transfer a balance from another card to a low-interest business credit card?

How often should I review my business credit card needs?