If your business occasionally carries a balance on its credit card, the purchase rate matters far more than cashback. A card earning 1% cashback while charging 25% interest on an unpaid balance will cost you significantly more than it returns.
This guide ranks the best low-interest business credit cards available in the UK as of March 2026, ordered by purchase rate from lowest to highest.
Each card has been assessed for purchase rate, representative APR, annual fees, cashback, FX charges, accounting integrations, and eligibility. Where a card carries a high headline APR due to its annual fee structure, we explain the distinction clearly.
If you want a broader overview of the full market before narrowing down, see our guide to the best business credit cards. If avoiding interest entirely is your goal, our best interest-free business credit cards guide covers 0% purchase period options.
Understanding Purchase Rate vs. Representative APR
Two figures appear on every credit card advertisement: the purchase rate and the representative APR. They measure different things, and confusing them leads to poor decisions when comparing low-interest cards.
The purchase rate is the annual interest rate charged on spending if you carry a balance month to month. This is the number that directly determines your interest cost. When comparing low-interest cards, always compare purchase rates.
The representative APR is a regulatory figure that combines the purchase rate with any annual fee, spread over a standardised assumed balance of £1,200. A card with a low purchase rate but a significant annual fee can therefore show a far higher representative APR than its actual borrowing cost suggests. The HSBC Commercial Credit Card, for example, has a 15.9% p.a. purchase rate but a 22% representative APR, because the £32 annual fee raises the regulatory calculation. Similarly, the NatWest card has a 16.9% purchase rate but a 24.3% representative APR.
If you pay your balance in full every month, neither figure matters because you pay no interest. If you sometimes carry a balance, focus on the purchase rate. If you never clear the balance and also carry debt on the card, the representative APR is a more complete cost measure. See our guide to business credit cards for a fuller explanation of how APR is calculated. Checking your business credit score before applying is also worth doing, as cards with variable rates may offer you a rate higher than the advertised minimum depending on your credit profile.
Best Low-Interest Business Credit Cards: At a Glance
Cards are sorted by purchase rate ascending. All figures are variable and correct as of March 2026. Verify current rates directly with each provider before applying.
| Card | Annual Fee | Purchase Rate | Rep. APR | Best For | Link |
|---|---|---|---|---|---|
| Capital on Tap Free (Top Pick) | £0 | From 13.86% | 34.65% | Lowest rate; cashback; no FX fee (Ltd/LLP only) | Visit Site |
| Bank of Scotland Business | 1st year free; then £32/card* | 14.9% | 15.95% | Lowest high-street rate; startups; sole traders | Visit Site |
| HSBC Commercial Credit Card | 1st year free; then £32/card | 15.9% | 22% | HSBC customers; fraud protection | Visit Site |
| NatWest Business Credit Card | 1st year free; then £30/card* | 16.9% | 24.3% | NatWest customers; startups; sole traders | Visit Site |
| Metro Bank Business | £0 | 18.9% | 18.9% | No-fee; guaranteed flat rate; EU travel | Visit Site |
| Santander Business Cashback | £30/account | 18.9% | 23.7% | Cashback + no FX fee (full balance payers only) | Visit Site |
| Barclaycard Select Cashback | £0 | 25.5% | 25.5% | No-fee; no bank account required; FreshBooks (full balance payers only) | Visit Site |
* Annual fee waived in year 1 and ongoing if annual card spend reaches £6,000 or more.
Interest Calculator
Carrying a balance on the wrong card can cost hundreds of pounds more per year than necessary. Use the calculator below to enter your average balance and monthly spend, and see your real annual cost across all seven cards once fees and cashback are factored in:
The Best Low-Interest Business Credit Cards: Full Reviews
Capital on Tap Free Business Credit Card – Best Overall
Annual fee: £0 (Pro version available at £299/year)
Purchase rate: From 13.86% p.a. (variable)
Representative APR: 34.65% variable (example based on £1,200 balance at mid-range rate; see note below)
Cashback: 1% unlimited, redeemable as cashback, Avios, Virgin Points, or gift cards
Interest-free period: Up to 42 days
FX fee: None
Credit limit: Up to £250,000
Accounting integration: Xero, QuickBooks, FreeAgent, Sage
Our Verdict: Capital on Tap’s free card is our top pick for the best low-interest business credit card for limited companies. The starting purchase rate of 13.86% p.a. is the lowest available on this page, and it comes with no annual fee, 1% unlimited cashback, no foreign transaction fees, and integrations with all four major UK accounting platforms. The representative APR of 34.65% looks alarming but reflects a regulatory calculation at a mid-range rate, not the headline rate you may qualify for. The critical caveat: this is a variable rate and your actual rate depends on your credit profile. Businesses with a strong credit profile may qualify near the floor; others may be offered a higher rate. Use Capital on Tap’s eligibility checker before applying, as it uses a soft search and does not affect your credit score. For a full breakdown of features and the Pro version comparison, see our Capital on Tap review.
Overview
Beyond the rate, Capital on Tap stands out in this comparison for the combination of features it offers at no annual cost. The unlimited 1% cashback has no monthly spend threshold and no cap, making it superior in cashback structure to both Barclaycard (which requires £2,000 per month to activate cashback) and Bank of Scotland (which has the same £2,000 threshold). Cashback is redeemable as cash, Avios, Virgin Points, or gift cards, giving flexibility that most business credit cards do not offer.
The zero FX fee is rare among cards at this price point and is particularly valuable for limited companies that purchase software subscriptions priced in US dollars or euros, pay overseas suppliers, or have directors who travel internationally for business. The four-platform accounting integration covers Xero, QuickBooks, FreeAgent, and Sage, which together account for the vast majority of UK small business accounting software. With over 200,000 customers and a Trustpilot score of 4.7 out of 5, Capital on Tap has a strong track record for service quality.
The interest-free period of up to 42 days is shorter than the 56-day standard on the bank-tied cards in this comparison. For businesses that time payments carefully around cash flow, this difference is worth noting. The eligibility restriction to UK-registered limited companies and LLPs means sole traders cannot apply, regardless of their credit profile or turnover.
If you are a sole trader looking for a low-interest option, the best business credit cards for sole traders guide covers your available options, including Bank of Scotland and HSBC. The minimum annual turnover requirement of £24,000 is low enough that most active limited companies will comfortably qualify, and Capital on Tap’s soft eligibility checker allows you to confirm your likely outcome before submitting a full application.
For a complete breakdown of all features and a direct comparison of the free and Pro versions, see our Capital on Tap review.
Pros & Cons
- Lowest starting purchase rate in this comparison (from 13.86% p.a.)
- No annual fee
- 1% unlimited cashback with no monthly minimum and no cap
- No FX fees
- Up to £250,000 credit limit
- Xero, QuickBooks, FreeAgent, and Sage integrations
- Soft eligibility check available before applying
- Rate is variable: you may be offered a significantly higher rate than 13.86% depending on credit profile
- Interest-free period of 42 days is shorter than the 56-day standard on bank cards
- Limited companies and LLPs only; sole traders are not eligible
- Minimum £24,000 annual turnover required
- No unpaid CCJs permitted
Eligibility Criteria
- UK-registered limited company or LLP only (sole traders are not eligible)
- Minimum annual turnover of £24,000
- No unpaid County Court Judgements
- Applicant must be aged 18 or over
Bank of Scotland Business Credit Card – Lowest High-Street Rate
Annual fee: Free in year 1; then £32 per cardholder (waived if combined spend across all cards reaches £6,000 or more per year)
Purchase rate: 14.9% p.a. (variable)
Representative APR: 15.95% variable
Cashback: 1% on fuel and EV charging; 0.5% on other eligible spend (minimum £2,000 combined monthly spend across all linked cards)
Interest-free period: Up to 56 days
FX fee: 2.95%
Credit limit: £1,000 to £25,000 (£5,000 cap for businesses under 12 months old)
Our Verdict: The Bank of Scotland Business Credit Card offers the lowest purchase rate among the high-street bank cards on this page at 14.9% p.a. variable, and its 15.95% representative APR is the most transparent in this comparison: what you see is almost exactly what you pay. The first year is free, and the annual fee is waivable thereafter with modest card spend. It also accepts new businesses (with a reduced credit limit), which is unusually accessible. The main limitations are the requirement to hold a Bank of Scotland Business Current Account and the 2.95% foreign transaction fee, which rules it out for businesses with significant international spending.
Overview
The cashback structure mirrors that of the Lloyds Business Credit Card, which is part of the same Lloyds Banking Group: 1% on fuel and EV charging, and 0.5% on other eligible spend, both requiring a combined minimum of £2,000 in monthly spend across all linked cards to activate.
For businesses with consistent card spend above that threshold, the cashback adds meaningful value on top of the competitive rate. For businesses with lower or irregular spend, the cashback may be difficult to activate consistently, and the card should be assessed on its interest rate alone in that case.
New businesses are accepted with a credit limit capped at £5,000 in the first year, which is a useful feature for startups looking to establish a business credit history without having to seek credit elsewhere. The 2.95% foreign transaction fee applies to all purchases made outside the UK, which rules this card out as the primary option for businesses with significant international spending.
If you are a startup considering your options, our guide to the best business credit cards for start-ups covers the full range of startup-friendly options. The representative APR of 15.95% is unusually close to the purchase rate of 14.9%, which reflects the modest annual fee in the regulatory calculation and makes this one of the most transparent rate comparisons on this page.
Pros & Cons
- Lowest purchase rate among high-street bank cards (14.9% p.a.)
- Transparent representative APR (15.95%) closely reflects the purchase rate
- No annual fee in year 1; waivable ongoing
- Accepts new and startup businesses
- Up to 56 days interest-free
- Open to sole traders
- Requires a Bank of Scotland Business Current Account
- Cashback requires £2,000 or more combined monthly spend across linked cards to activate
- 2.95% FX fee
- £5,000 credit limit cap for businesses under 12 months old
- Personal guarantee may be required for limited companies
Eligibility Criteria
- Must hold a Bank of Scotland Business Current Account
- Open to sole traders, partners, and directors aged 18 or over with borrowing authority
- No unpaid County Court Judgements
- Personal guarantee may be required for limited companies and LLPs
HSBC Commercial Credit Card
Annual fee: Free in year 1; then £32 per cardholder
Purchase rate: 15.9% p.a. (variable)
Representative APR: 22% variable (higher than purchase rate due to annual fee in regulatory calculation)
Cashback: None direct; discounts and offers available via HSBC Business Rewards
Interest-free period: Up to 56 days (38 days when paying by Direct Debit)
FX fee: 2.99%
Credit limit: From £500
Our Verdict: A strong card for existing HSBC business customers who carry a balance. At 15.9% p.a. purchase rate, HSBC offers one of the lower ongoing interest rates on this page. The 22% representative APR looks higher than competitors at first glance, but this is almost entirely a function of the £32 annual fee in the regulatory calculation. Compare purchase rates, not representative APRs, when assessing interest cost on this card. The inclusion of identity theft helpline access and fraud protection are genuine practical benefits not offered by most cards in this comparison.
Overview
The HSBC Commercial Card sits at 15.9% p.a. purchase rate, which is the second lowest among the high-street bank cards on this page and substantially below the market average for business credit cards. It is available to sole traders, partnerships, limited companies, schools, and charities with borrowing authority, making it one of the more broadly accessible cards in this comparison in terms of eligible business types.
As with all the bank-tied cards here, you must hold an HSBC Business Current Account to apply. The first year is fee-free; from year two, the annual fee of £32 per cardholder applies with no spend-based waiver, which means businesses with multiple cardholders will see the ongoing cost accumulate in a way that NatWest and Bank of Scotland customers can avoid through the £6,000 annual spend threshold those banks offer.
The representative APR of 22% is noticeably higher than the 15.9% purchase rate, but this gap is almost entirely explained by the £32 annual fee being included in the regulatory calculation. When comparing the true cost of borrowing between cards, the purchase rate of 15.9% is the relevant figure, not the representative APR.
Businesses paying by Direct Debit should note that the interest-free period reduces from 56 days to 38 days under that payment method, which is a meaningful reduction for businesses that time purchases around statement cycles. There is no direct cashback programme: HSBC Business Rewards provides partner discounts at selected retailers rather than cash credited to the account, which requires active engagement with the programme to realise any benefit.
The card does include identity theft helpline access and cardholder misuse insurance, which are practical protections not offered by most cards in this comparison and are worth noting for businesses that issue cards to multiple members of staff.
Pros & Cons
- Low purchase rate (15.9% p.a.)
- No annual fee in year 1
- Identity theft helpline and fraud protection included
- Available to sole traders, partnerships, limited companies, schools, and charities
- Up to 56 days interest-free
- Requires an HSBC Business Current Account
- No direct cashback
- Interest-free period reduces to 38 days when paying by Direct Debit
- 2.99% FX fee
- Representative APR (22%) overstates true borrowing cost due to fee inclusion
Eligibility Criteria
- Must hold an HSBC Business Current Account
- Open to sole traders, partnerships, limited companies, schools, and charities with borrowing authority
- UK resident, aged 18 or over
NatWest Business Credit Card
Annual fee: Free in year 1; then £30 per cardholder (waived if annual spend reaches £6,000 or more)
Purchase rate: 16.9% p.a. (variable)
Representative APR: 24.3% variable
Cashback: 1% on fuel and EV charging only (via Mastercard Business Savings)
Interest-free period: Up to 56 days
FX fee: 2.95% non-sterling
Credit limit: From £500
Accounting integration: ClearSpend app; FreeAgent (free for NatWest Startup Account holders)
Our Verdict: A practical, low-friction option for NatWest account holders. At 16.9% p.a. purchase rate, the borrowing cost is competitive relative to most of the market. The annual fee structure is also unusually generous: year one is always free, and the ongoing fee is waived in any year you spend £6,000 or more (around £500 per month), a threshold most active businesses will clear easily. For NatWest Startup Account holders, the inclusion of FreeAgent accounting software adds meaningful practical value. The main limitation is the cashback programme, which is restricted to fuel and EV charging only. For broad-based cashback on all spending, Capital on Tap or Bank of Scotland are stronger choices. For a broader look at NatWest business banking products, see our NatWest Business Bank Account review.
Overview
The annual fee structure on the NatWest Business Credit Card is unusually generous relative to the high-street bank cards in this comparison. Year one is always free for all new applicants, and the ongoing £30 per cardholder fee is waived in any subsequent year where that cardholder spends £6,000 or more, which equates to around £500 per month.
Most active businesses will clear that threshold without difficulty, making this effectively a no-fee card for regular users. The cashback programme is restricted to fuel and EV charging only via Mastercard Business Savings, which is less flexible than the broad-based cashback available from Capital on Tap, Bank of Scotland, or Santander. Businesses looking for cashback on general spend should treat NatWest as a rate-first choice rather than a rewards card.
NatWest Startup Account holders receive FreeAgent accounting software free of charge as part of their account, and this benefit extends to new card applicants, making it a strong combined package for recently incorporated businesses. New NatWest customers can apply for the card at the same time as opening a business current account, and the year-one fee waiver applies immediately.
If you are considering opening a NatWest account alongside the card, our NatWest Business Bank Account review covers the full account offering. The turnover ceiling of £2 million means this card is designed for smaller SMEs; businesses above that threshold should apply for the NatWest Business Plus card instead, which carries a higher annual fee but offers broader cashback and no FX charges.
Pros & Cons
- Competitive purchase rate (16.9% p.a.)
- Annual fee waived in year 1 automatically
- Ongoing fee waived with £6,000 or more annual spend
- Open to sole traders and new businesses
- FreeAgent free for NatWest Startup Account holders
- Real-time spending tracking via app and ClearSpend
- Requires a NatWest Business Current Account
- Cashback restricted to fuel and EV charging only
- 2.95% FX fee applies
- Trustpilot reviews for NatWest overall are broadly poor (driven largely by banking complaints, not card-specific issues)
- Turnover must be under £2 million
Eligibility Criteria
- Must hold a NatWest Business Current Account
- Open to sole traders, limited companies, LLPs, partnerships, charities, clubs, and societies
- Annual turnover must be under £2 million
- No unpaid County Court Judgements
- UK resident, aged 18 or over
MetroBank Business Credit Card
Annual fee: £0
Purchase rate: 18.9% p.a. (variable; single flat rate offered to all customers)
Representative APR: 18.9% variable
Cashback: None
Interest-free period: Up to 56 days
FX fee: None within SEPA countries; standard fees apply outside Europe
Cash advance limit: Maximum £300 per day
Award: Moneyfacts Five-Star rated (June 2025)
Our Verdict: Metro Bank’s Business Credit Card offers a genuinely flat rate: every customer accepted for the card receives 18.9% p.a., with no variable range and no uncertainty about the rate you will actually be offered. For businesses that value rate certainty, this is a meaningful differentiator. The zero annual fee and zero FX fee within SEPA countries (covering most of Europe) make it a cost-effective option for businesses with European trading activity. The requirement to apply in branch limits access to businesses in England and Wales with a Metro Bank nearby, and the absence of cashback is the main feature gap relative to Capital on Tap and the high-street bank cards.
Overview
The flat rate structure is Metro Bank’s most distinctive feature. Unlike every other card in this comparison, which operates on a variable rate range where the rate you are offered depends on your business credit profile, Metro Bank applies the same 18.9% p.a. to all approved applicants. This means the representative APR and the purchase rate are identical, and there is no risk of being offered a rate higher than advertised.
For businesses that have been offered higher rates on other cards due to a limited credit history or modest turnover, Metro Bank’s predictability may make it preferable despite the headline rate being higher than the bank-tied alternatives earlier in this list.
The zero FX fee within SEPA countries (which covers the eurozone and most of Western and Northern Europe) makes this card a useful option for businesses that purchase from European suppliers, subscribe to European software platforms, or send staff to Europe regularly. Outside of SEPA, standard foreign transaction fees apply.
There is no cashback or rewards programme on the Metro Bank Business Credit Card, which is a notable gap for businesses that want to earn something back on spend. The in-branch application requirement is the most significant practical limitation: Metro Bank currently operates 76 branches, all located in England and Wales and concentrated in London and major urban centres.
Businesses based outside this geographic footprint cannot apply. The Moneyfacts Five-Star rating awarded in June 2025 reflects the card’s strong feature set for its target market, particularly the combination of no fee and no European FX charge.
Pros & Cons
- Flat 18.9% rate; no variable range or rate uncertainty
- No annual fee
- No FX fee within SEPA countries (most of Europe)
- Up to 56 days interest-free
- Moneyfacts Five-Star rated (June 2025)
- Must hold a Metro Bank Business Current Account
- In-branch application only
- England and Wales only; no branches in Scotland or Northern Ireland
- No cashback or rewards
- Cash advance limit of £300 per day
Eligibility Criteria
- Must hold a Metro Bank Business Current Account
- Business must be owned by individuals (not a parent company)
- At least half of signatories or directors must be UK-resident
- England and Wales only; application in branch required
- Aged 18 or over
Santander Business Cashback Credit Card
Annual fee: £30 per account (covers all cardholders, up to 4 cards total)
Purchase rate: 18.9% p.a. (variable)
Representative APR: 23.7% variable
Cashback: 1% on all eligible spend, uncapped, no monthly minimum
Interest-free period: Up to 56 days
FX fee: None on purchases made in local currency abroad
Credit limit: £500 to £25,000
Our Verdict: For businesses that consistently clear their full balance, Santander is the most cost-effective cashback card with international spending in this comparison. The 1% uncapped cashback with no monthly minimum spend threshold is more accessible than Barclaycard’s structure, and the zero FX fee is the most significant differentiating feature for businesses that buy from overseas suppliers, use international software subscriptions, or travel. The £30 annual fee covers the account rather than each card, so multiple users cost no more. The requirement to already bank with Santander is a real barrier, but for existing customers it is the best combination of cashback, FX cost, and purchase rate available to sole traders on this page.
Important note on placement: At 18.9% p.a., Santander’s purchase rate is one of the highest on this page. It appears here because it is included in low-interest comparisons across the market and because its 1% uncapped cashback and zero FX fee make it a genuinely competitive card for businesses that pay the full balance every month. If you are likely to carry a balance, the interest cost at 18.9% p.a. will outweigh the cashback benefit quickly. For a broader view of cashback options, see our guide to the best cashback and reward business credit cards.
Overview
The cashback structure is the most accessible on this page for businesses of all sizes. The 1% rate applies to all eligible spend with no monthly minimum threshold and no annual cap, which means even businesses with modest or irregular card spend earn cashback from the first pound spent.
This contrasts with Barclaycard, which requires £2,000 in statement spend before any cashback is earned in a given month, and with Bank of Scotland, which requires £2,000 in combined monthly spend across all linked cards. Cashback is credited directly to the card account each month, so it reduces the balance owed rather than being held in a separate rewards account.
The zero FX fee on purchases made in local currency abroad is the card’s strongest differentiator for businesses with international activity. Unlike Metro Bank’s SEPA-limited FX waiver, Santander’s zero FX fee on local currency purchases applies worldwide.
This makes it a materially better option than Bank of Scotland, HSBC, NatWest, or Barclaycard for businesses that buy from non-European suppliers, subscribe to US-priced software, or have staff who travel outside Europe. The £30 annual fee covers the entire account rather than being charged per cardholder, so businesses with multiple card users pay no more than those with a single card, up to the maximum of three additional cardholders.
Santander’s application process requires an existing Santander Business Current Account and is conducted in branch or by telephone, which adds friction compared to online applications. The restriction to businesses with a maximum of two directors or partners who own the business entirely means this card is unsuitable for companies with more complex ownership structures.
For a broader view of cashback options across the market, see our guide to the best cashback and reward business credit cards.
Pros & Cons
- 1% uncapped cashback on all eligible spend with no monthly minimum
- No FX fee on local currency purchases abroad
- £30 per account covers all cardholders (up to 3 additional at no extra cost)
- Open to sole traders
- Up to 56 days interest-free
- Requires an existing Santander Business Current Account
- 18.9% purchase rate; carrying a balance will erode cashback value rapidly
- Maximum of 2 directors or partners; not suitable for larger partnerships
- In-branch or telephone application only
- No CCJs or IVA within the last 6 years
Eligibility Criteria
- Must hold a Santander Business Current Account (1|2|3 or standard)
- Open to sole traders, partnerships, LLPs, and private limited companies
- Maximum 2 directors or partners who own the business entirely
- No bankruptcy or IVA within the last 6 years
- All applicants aged 18 or over, UK resident
Barclaycard Business Select Credit Card
Annual fee: £0
Purchase rate: 25.5% p.a. (variable)
Representative APR: 25.5% variable
Cashback: 1% on all eligible spend, but only in months when statement spend reaches £2,000 or more
Interest-free period: Up to 56 days
FX fee: 2.99%
Accounting integration: Free FreshBooks Plus plan included
Award: Business Moneyfacts Best Business Card Provider for the 12th consecutive year (2025)
Our Verdict: For businesses that pay the full balance every month, spend consistently above £2,000 per month on the card, and do not need or want to open a separate business bank account, Barclaycard Select Cashback is a strong no-fee option. The free FreshBooks Plus plan (covering invoicing, expense tracking, and time tracking) adds genuine value. Start-ups are accepted with a credible business plan showing £10,000 or more in projected turnover. For any business that carries a balance, this card is entirely unsuitable; 25.5% p.a. is the highest purchase rate in this comparison by a significant margin.
Important note on placement: At 25.5% p.a., Barclaycard’s purchase rate is the highest on this page. It appears here because it is a prominent no-fee business card available without a requirement to hold a Barclays business bank account, and because it offers 1% cashback for businesses that reliably spend more than £2,000 per month and pay their balance in full. It is not a low-interest card and is entirely unsuitable for carrying a balance. It is positioned last on this page accordingly.
Overview
The 1% cashback rate is competitive, but the £2,000 monthly spend threshold is a significant condition. In any month where total statement spend falls below £2,000, no cashback is earned at all, which makes this card unsuitable as a primary cashback option for businesses with low or variable monthly card spend.
For businesses that consistently spend above £2,000 per month and reliably pay the full balance, the cashback is straightforward and paid monthly as a statement credit. The absence of an annual fee means there is no fixed cost to account ownership, though the 2.99% FX fee makes it an expensive choice for international purchases.
The inclusion of a free FreshBooks Plus plan is a genuine practical benefit. FreshBooks is a cloud-based accounting and invoicing platform particularly well suited to service businesses, freelancers, and sole traders. The Plus plan covers unlimited client invoicing, expense tracking, time tracking, and automated payment reminders.
For businesses not already using dedicated accounting software, this represents real tangible value. Barclaycard has held the Business Moneyfacts Best Business Card Provider award for 12 consecutive years as of 2025, which reflects consistent industry recognition. The card is available to sole traders and limited companies without any requirement to hold a Barclays business bank account, which is a meaningful advantage for businesses that do not bank with Barclays and do not wish to switch. Start-ups are also eligible provided their business plan demonstrates projected turnover of £10,000 or more.
For a full comparison of Barclaycard’s business card range, see our Barclaycard business credit card comparison.
Pros & Cons
- No requirement to hold a Barclays business bank account
- 1% cashback on eligible spend above £2,000/month
- Free FreshBooks Plus accounting plan included
- Open to sole traders and start-ups
- Up to 56 days interest-free
- 25.5% purchase rate; the highest on this page and entirely unsuitable for carrying a balance
- No cashback earned in months when spend falls below £2,000
- 2.99% FX fee
- App rated below average by users (approximately 2.3 out of 5 on Google Play as of early 2026)
Eligibility Criteria
- Open to sole traders, limited companies, and partnerships
- Minimum £10,000 annual turnover (or a credible business plan showing this level for start-ups)
- No requirement to hold a Barclays bank account
- No unpaid County Court Judgements
- Not declined for a Barclaycard commercial card in the last 6 months
Which Card is Right for Your Business?
If you are a limited company or LLP and want the lowest possible rate with cashback
Capital on Tap is the obvious choice. The starting rate of 13.86% p.a. is the lowest on this page, the cashback is unlimited with no threshold, and there is no annual fee or FX charge. Check your eligibility with their soft search tool before applying. See our full Capital on Tap review for a complete assessment, including how the free and Pro versions compare.
If you are a sole trader and want the lowest possible rate
Bank of Scotland offers the lowest purchase rate (14.9% p.a.) available to sole traders on this page, combined with a transparent representative APR and no first-year fee. The requirement to hold a Bank of Scotland Business Current Account applies. If you already bank with Lloyds (part of the same group), the Lloyds Business Credit Card offers the same rate structure. For the full range of sole trader options, see our guide to the best business credit cards for sole traders.
If you are an HSBC customer
The HSBC Commercial Credit Card at 15.9% p.a. is a competitive option if you already hold an HSBC business account. The representative APR of 22% overstates the true interest cost due to the annual fee; the purchase rate is the relevant figure for comparing borrowing costs.
If you want a flat rate with no uncertainty and no annual fee
Metro Bank’s flat 18.9% rate means you know exactly what you will pay if you carry a balance, with no variable range and no risk of being offered a higher rate. The catch is the in-branch application requirement and geographic restriction to England and Wales.
If you pay the full balance every month and want cashback on international spending
Santander Business Cashback gives you 1% on all spend with no monthly minimum and no FX fee. At 18.9% p.a. it is not a low-interest card for balance carriers, but for full payers it is the most cost-effective option when FX spending is a factor. Requires an existing Santander Business Current Account.
If you want interest-free periods rather than a low ongoing rate
If your priority is avoiding interest entirely rather than minimising it, a card with a 0% purchase period may serve you better than any of the cards on this page. See our guide to the best interest-free business credit cards for the current market overview. Our full business credit card comparison table covers the entire market if you want to assess all options side by side.
Low-Interest Business Credit Card FAQs
As of March 2026, Capital on Tap offers the lowest starting purchase rate at 13.86% p.a. variable, but this is a rate range and the rate you receive will depend on your business credit profile. Among high-street bank cards with fixed representative APRs, Bank of Scotland and Lloyds offer 14.9% p.a. purchase rate (15.95% representative APR), available to existing customers. Metro Bank offers a flat 18.9% p.a. to all approved applicants with no rate variation.
If you consistently pay the full balance every month, the APR is irrelevant; you pay no interest. In that case, a card’s annual fee, cashback rate, FX charges, and accounting integrations are the relevant factors to compare. The best business credit cards guide covers the full market with these factors weighted more evenly.
Yes, but the options are more limited. Capital on Tap (the lowest-rate card on this page) is restricted to limited companies and LLPs. Sole traders can access Bank of Scotland (14.9% p.a.), HSBC (15.9% p.a.), NatWest (16.9% p.a.), Metro Bank (18.9% p.a.), and Santander (18.9% p.a.), all of which require existing accounts with those banks. Barclaycard does not require a Barclays account but carries a 25.5% p.a. purchase rate. See our best business credit cards for sole traders guide for a full sole trader-focused comparison.
The purchase rate is the annual interest rate applied to spending if you carry a balance. The representative APR is a regulatory figure that combines the purchase rate with any annual fee, calculated over a standardised balance of £1,200. Cards with a modest annual fee and a low purchase rate (such as HSBC at 15.9% purchase rate, 22% representative APR, or NatWest at 16.9% purchase rate, 24.3% representative APR) can appear more expensive than they are when representative APRs are compared. Always compare purchase rates when assessing the true cost of borrowing. See our full explanation in the section above for worked examples.
No. Capital on Tap advertises a rate starting from 13.86% p.a., but this is the lower end of a variable rate range. The rate you are offered depends on your business credit profile. The representative APR shown in advertising (34.65%) reflects a mid-range example rate, which gives a more realistic indication of what many customers will receive. Businesses with a strong credit profile and established trading history are more likely to be offered rates toward the lower end of the range. Use Capital on Tap’s soft eligibility check to get an indicative rate before committing to a full application.
Business credit cards rarely offer 0% balance transfer periods. Most 0% introductory offers on the market apply to new purchases rather than existing debt. If you are looking to reduce the cost of existing business debt, our guide to interest-free business credit cards covers current 0% purchase options. For broader debt management questions, our guide to business credit cards covers the key considerations. The difference between a credit card and a charge card is also worth understanding when comparing options; see our business credit cards vs charge cards guide for a clear explanation.
It depends on the card. Bank of Scotland, HSBC, NatWest, Metro Bank, and Santander all require you to hold a business current account with them. Capital on Tap does not require a specific bank account, though you must be a UK-registered limited company or LLP. Barclaycard Select Cashback also requires no Barclays business account and is open to sole traders and limited companies alike. If you do not yet have a business bank account and are considering opening one to access a specific card, our guides to the best startup business bank accounts and best business bank accounts overall may help you choose the right account.
Advertising disclosure: Business Expert is an independent comparison site. Some products featured on this page may earn us a commission if you apply via our links. This does not influence our editorial assessments, the order in which cards are reviewed (which is determined by purchase rate), or the inclusion or exclusion of any card. All data is correct as of March 2026. Interest rates, fees, and eligibility criteria are subject to change. Always verify current terms directly with the card provider before applying. This article does not constitute financial advice. If you are unsure which product is right for you, consider speaking to a qualified financial adviser.
