Having poor credit does not mean your options are exhausted. A number of UK business credit cards are genuinely accessible to businesses and directors with impaired credit histories, and some are specifically designed with that audience in mind.
The right card will not only help you manage cash flow day to day, it can also help you rebuild your credit score over time, as long as you use it responsibly.
This guide covers the five best business credit cards for bad credit available in the UK right now. For each one, we explain exactly how the credit check works, what the real eligibility barriers are, and which type of business it suits best.
Capital on Tap Business
Capital on Tap Pro
- Business Credit VS Personal Credit
- The Best Business Credit Cards for Bad Credit
- Bad Credit vs Limited Credit: What Is the Difference?
- Will a Lender Check My Personal Credit for a Business Credit Card?
- How to Choose a Business Credit Card with Bad Credit
- What Is a Personal Guarantee and Do I Need One?
- How to Improve Your Business Credit Score
- Alternatives to Business Credit Cards for Bad Credit
Quick Comparison: Best Business Credit Cards for Bad Credit
| Card | Annual Fee | Rep APR | Cashback | Credit Check | Link |
|---|---|---|---|---|---|
| Capital on Tap Free | £0 | 36.45% variable | 1% uncapped | Soft only | Visit Site |
| Barclaycard Select Cashback | £0 | 26.5% variable | 1% if spending £2,000+/month | Hard | Visit Site |
| Metro Bank Business | £0 | 18.9% variable | None | Hard (existing customers benefit) | Visit Site |
| NatWest Business Plus | £70/cardholder | 29% variable | Up to 3% tiered | Soft at enquiry | Visit Site |
| RBS Business Plus | £70/cardholder | 29% variable | Up to 3% tiered | Soft at enquiry | Visit Site |
The Best Business Credit Cards for Bad Credit
Capital on Tap Business Credit Card: Best Overall
Annual fee: £0
Purchase rate: from 13.86% variable
Representative APR: 34.65% variable
Cashback: 1% on all spend (points redeemable as cashback, Avios or Virgin Points)
Interest-free period: Up to 42 days when paid in full
Credit limit: £1,000 to £250,000
FX fee: None
ATM fee: None
Accounting integrations: QuickBooks, Xero, FreeAgent, Sage
Credit check: Soft search only on personal file
Our Verdict: The strongest option on this list for bad credit applicants. Capital on Tap is the only card here that runs a soft credit search only, meaning applying will not affect your credit score even if you are declined. Its fintech underwriting weighs your business’s recent revenue and performance rather than relying solely on your credit history, and there is no publicly stated minimum credit score. The main threshold is no unsatisfied CCJs in the last 12 months. If you run a limited company or LLP, this should be your first application. Note that Section 75 consumer protection does not apply, as this is not a regulated credit agreement in the traditional sense. For a full breakdown of features and fees, read our Capital on Tap Business Credit Card Review.
Overview
Unlike most business credit cards, the Capital on Tap (Free) card uses a soft credit search only when you apply, meaning it will not appear on your credit file and cannot be seen by other lenders, even if your application is unsuccessful. This matters significantly for bad credit applicants who may be uncertain whether they will be accepted and cannot afford to accumulate hard search marks on their file.
Beyond the credit check, Capital on Tap’s underwriting draws on real-time business performance data rather than relying solely on historical credit scores, so a poor credit history does not automatically disqualify you.
The card itself is well-featured: unlimited free employee cards, no FX fees, no ATM fees, and direct integrations with QuickBooks, Xero, FreeAgent and Sage make it a practical everyday card rather than a bare-bones credit-rebuilding product.
Credit limits run from £1,000 up to £250,000 depending on your business’s financial profile, and the 1% cashback on all spending (redeemable as cash, Avios or Virgin Points) applies from day one with no minimum spend threshold.
The key restriction is business structure. Capital on Tap is available only to UK-registered limited companies and LLPs. Sole traders are not eligible, regardless of their financial position. The card also carries a 36.19% representative APR, which is high relative to some alternatives, so it is best suited to businesses that clear their balance in full each month. Note that Section 75 consumer credit protection does not apply to Capital on Tap purchases.
Pros & Cons
- Soft credit search only (no impact on your credit score)
- No annual fee
- 1% cashback on all spend, uncapped
- No FX fees and no ATM fees
- Unlimited free employee cards
- Fast online application with quick decisions
- Credit limits up to £250,000
- Integrations with major accounting software
- Limited companies and LLPs only (sole traders cannot apply)
- Section 75 protection does not apply
- Representative APR of 36.19% is high if you carry a balance
- No unsatisfied CCJs in the last 12 months required
- Minimum ~£24,000 annual revenue required
Eligibility Criteria
- Limited companies and LLPs only (sole traders not eligible)
- Director must own at least 25% of the business
- No unsatisfied CCJs in the last 12 months
- Minimum annual revenue approximately £24,000
- UK-registered business
3. Barclaycard Select Cashback Business Credit Card: Best for Businesses Without an Existing Banking Relationship
Annual fee: £0
Representative APR: 26.5% variable
Cashback: 1% on all purchases in months where spend reaches £2,000 or more; zero cashback below that threshold
Annual cashback cap: £400 per account
Interest-free period: Up to 56 days when paid in full
FX fee: 2.99%
Employee cards: Free, with individual spending limits via MyControls
Accounting integration: FreshBooks (free)
Credit check: Hard search at application
Our Verdict: Barclaycard Select Cashback has one meaningful advantage over every other card on this list: you do not need an existing banking relationship to apply. If you do not already bank with NatWest, RBS or Metro Bank, this is the most accessible no-fee cashback card available to sole traders and limited companies alike. The credit check is a hard search, so it will appear on your file, but existing Barclaycard customers are assessed using their account history, which reduces the weight placed on your credit report. The cashback threshold of £2,000 per month is the central consideration: in months where you spend below that level, you earn nothing. Businesses with consistent monthly spending above £2,000 will find this card excellent value; those with irregular or lower monthly spend will find the cashback frustratingly out of reach.
Overview
Unlike the NatWest, RBS and Metro Bank cards on this list, the Barclaycard Select Cashback does not require you to hold an existing account with the bank. Any UK business with a turnover of £10,000 or more can apply, including sole traders and startups with a credible business plan, making it the most accessible no-fee cashback card here for businesses without an existing banking relationship.
The application involves a hard credit check, which will appear on your file, but existing Barclaycard customers are assessed using their account history, which reduces the weight placed on the credit report.
The cashback works as a 1% monthly statement credit, paid automatically in any month where your total business spend on the card reaches £2,000 or more. In any month where spending falls below that threshold, no cashback is earned. The annual cap is £400 per account.
Free employee cards, individual spending limits via the MyControls tool, and a free FreshBooks accounting plan round out the package. The FreshBooks subscription covers invoicing, expense tracking and time management tools that would otherwise cost around £22 per month.
Pros & Cons
- No existing banking relationship required
- Open to sole traders and startups
- 1% cashback with no category restrictions in qualifying months
- Cashback paid as monthly statement credit
- Free employee cards with individual limits
- Free FreshBooks accounting plan included
- Up to 56 days interest-free
- Hard credit check at application
- Zero cashback in months where spend is below £2,000
- Annual cashback cap of £400
- 2.99% foreign transaction fee
- Cannot apply within 6 months of being declined for a Barclaycard commercial card
Eligibility Criteria
- Sole traders, limited companies and partnerships
- Minimum annual turnover £10,000
- Startups accepted with a credible business plan
- No existing Barclays account required
- Cannot apply within 6 months of a previous Barclaycard commercial card decline
Metrobank Business Credit Card
Annual fee: £0
Purchase rate: 17.44% variable p.a.
Representative APR: 18.9% variable
Cashback: None
Interest-free period: Up to 56 days when paid in full
FX fee: None within SEPA European countries; 2.99% outside Europe
Additional cards: Up to 9 per account
ATM limit: £300
Credit check: Hard search (existing customers benefit from banking history weighting)
Application: In-branch only
Rating: Moneyfacts 5-star (June 2025)
Our Verdict: Metro Bank offers the lowest representative APR on this list at 18.9% variable, which makes it the most cost-effective choice if there is any realistic chance of carrying a balance. The no-annual-fee structure and zero FX fees within SEPA countries add further value. For existing Metro Bank customers with a poor credit history, the underwriting process takes your banking behaviour into account, which can tip the balance where your credit score alone would not be sufficient. The restrictions are significant, however. You must already hold a Metro Bank Business Current Account, and you must apply in branch. Metro Bank’s network is concentrated in London and the South East, so businesses based elsewhere will find this card impractical. There is also no cashback on offer at all, so if rewards matter to you, one of the other cards will be a better fit.
Overview
The Metro Bank Business Credit Card carries a representative APR of 18.9% variable, the lowest on this list by a meaningful margin, and significantly cheaper than Capital on Tap’s 36.19% if you expect to carry a balance.
On a £3,000 carried balance, that difference amounts to roughly £560 per year in interest, so for businesses that regularly need to spread costs over more than one month, Metro Bank is worth serious consideration. There is no annual fee, and purchases made within SEPA European countries carry no foreign transaction fee.
For existing Metro Bank customers with a poor credit history, the underwriting takes your banking behaviour into account alongside your credit score, which is a useful advantage where the credit report alone might not paint a complete picture.
Access is restricted in two important ways: you must already hold a Metro Bank Business Current Account, and the application must be completed in a branch rather than online.
Metro Bank’s branch network is concentrated in London and the South East, which makes this card impractical for businesses based elsewhere. There is no cashback at all, so if rewards are a priority, one of the other cards on this list will be a better fit.
Pros & Cons
- Lowest representative APR on this list (18.9% variable)
- No annual fee
- No FX fee within SEPA European countries
- Existing customers benefit from banking history in underwriting
- Up to 9 additional cards per account
- Up to 56 days interest-free
- Requires an existing Metro Bank Business Current Account
- In-branch application only (no online route)
- Branch network concentrated in London and the South East
- No cashback
- £300 ATM withdrawal limit
- 2.99% FX fee outside Europe
Eligibility Criteria
- Must hold an existing Metro Bank Business Current Account
- Sole traders, partnerships and limited companies eligible
- In-branch application required
- Hard credit check applies
NatWest Business Plus Credit Card: Best for Fuel Cashback and Overseas Spend
Annual fee: £70 per cardholder (no first-year waiver)
Purchase rate: 13.9% variable
Representative APR: 29% variable
Cashback: 3% fuel and EV charging; 2% trade and business supplies; 1% travel and accommodation; 0.5% all other spend
Annual cashback cap: £600 per account per year
Interest-free period: Up to 56 days when paid in full
FX fee: None on purchases abroad
Expense management: Free ClearSpend app
Credit check: Soft search at enquiry stage; full hard check on formal application
Our Verdict: The NatWest Business Plus card is well-suited to existing NatWest customers with bad credit, for two reasons. The initial eligibility enquiry uses a soft search, so you can test whether you are likely to be approved without any impact on your score. And NatWest’s underwriting takes your existing banking relationship into account, giving you a meaningfully better chance of approval than a cold application to a lender who knows nothing about you. The tiered cashback structure is the most rewarding on this list for businesses with high fuel costs, and the zero FX fee makes it a strong everyday card for businesses that travel or buy overseas. The £70 annual fee per cardholder is the main cost consideration: for a business with two cardholders, that is £140 per year before cashback starts to work in your favour.
Overview
The NatWest Business Plus card runs a soft credit search at the initial enquiry stage, meaning existing NatWest customers can check whether they are likely to qualify without any impact on their credit score. A full hard check follows only if you proceed to a formal application.
NatWest’s underwriting also takes your existing banking relationship into account, which gives customers with a poor credit history a better chance of approval than they would receive from a lender with no prior knowledge of their business.
The tiered cashback structure rewards businesses with high fuel costs most: 3% on fuel and EV charging is the strongest rate in that category available on any card in this comparison, with 2% on trade and business supplies, 1% on travel and accommodation, and 0.5% on all other spending. The annual cashback cap is £600 per account across all categories combined.
Businesses spending heavily across multiple tiers will reach that limit relatively quickly, so it is worth calculating expected cashback against the £70 annual fee per cardholder before applying. Zero FX fees on purchases abroad add further value for businesses that travel or buy from overseas suppliers.
Pros & Cons
- Soft credit search at enquiry stage (test eligibility without score impact)
- Existing NatWest customers benefit from banking history in underwriting
- Best cashback structure for fuel and EV charging (3%)
- No FX fee on purchases abroad
- Free ClearSpend expense management app
- Up to 56 days interest-free
- Requires an existing NatWest Business Current Account
- £70 annual fee per cardholder (no waiver)
- Annual cashback cap of £600 per account
- Full hard check applies at formal application stage
- Turnover must be under £6.5m
Eligibility Criteria
- Must hold an existing NatWest Business Current Account
- Sole traders, partnerships and limited companies eligible
- Turnover under £6.5 million
- Soft enquiry available before formal application
RBS Business Plus Credit Card: Best for Scotland and Northern England Businesses
Annual fee: £70 per cardholder (no first-year waiver)
Purchase rate: 13.9% variable
Representative APR: 29% variable
Cashback: 3% fuel and EV charging; 2% trade and business supplies; 1% travel and accommodation; 0.5% all other spend
Annual cashback cap: £600 per account per year
Interest-free period: Up to 56 days when paid in full
FX fee: None on purchases abroad
Expense management: Free ClearSpend app
Credit check: Soft search at enquiry stage; full hard check on formal application
Rating: Moneyfacts 5-star
Our Verdict: The RBS Business Plus is the equivalent product to the NatWest Business Plus, built for businesses that bank with Royal Bank of Scotland. The cashback structure, fees, APR and eligibility criteria are identical. For existing RBS customers with a poor credit history, the soft enquiry process means you can test eligibility safely, and RBS’s access to your transaction history works in your favour during underwriting in the same way as it does at NatWest. The same calculus on the annual fee applies: two cardholders cost £140 per year, so your cashback earnings need to clear that before you are in profit. For businesses with regular fuel costs or frequent overseas purchasing, the tiered rates and zero FX fee make that a realistic target. The RBS branch network is concentrated in Scotland and Northern England, which may be relevant for in-branch account management.
Overview
The RBS Business Plus card offers a soft credit search at the initial enquiry stage, so existing RBS customers can check their likely eligibility without affecting their credit score. A full hard check applies only if you proceed to a formal application.
RBS’s underwriting takes your existing banking relationship into account, which benefits customers with a poor credit history by giving the lender additional context beyond what the credit report shows.
The tiered cashback structure is identical to the NatWest Business Plus: 3% on fuel and EV charging, 2% on trade and business supplies, 1% on travel and accommodation, and 0.5% on everything else, with a combined annual cap of £600 per account. Zero FX fees apply to all purchases abroad.
The £70 annual fee per cardholder means a business running two cards pays £140 per year, so it is worth calculating whether your expected cashback, particularly on fuel and trade spend, will cover that cost before applying. The ClearSpend app is included free for expense tracking, and the card holds a Moneyfacts 5-star rating.
Pros & Cons
- Soft credit search at enquiry stage (test eligibility without score impact)
- Existing RBS customers benefit from banking history in underwriting
- Best cashback structure for fuel and EV charging (3%)
- No FX fee on purchases abroad
- Free ClearSpend expense management app
- Moneyfacts 5-star rated
- Up to 56 days interest-free
- Requires an existing RBS Business Current Account
- £70 annual fee per cardholder (no waiver)
- Annual cashback cap of £600 per account
- Full hard check applies at formal application stage
- Branch network concentrated in Scotland and Northern England
Eligibility Criteria
- Must hold an existing RBS Business Current Account
- Sole traders, partnerships and limited companies eligible
- Turnover under £6.5 million
- Soft enquiry available before formal application
Bad Credit vs Limited Credit: What Is the Difference?
These two situations are often treated as the same thing, but they are meaningfully different and lenders assess them differently.
Bad credit means your business, or you personally as a director, has a history of using credit and managing it poorly. Missed payments, defaults, County Court Judgements and IVAs all fall into this category. Lenders see evidence of risky behaviour and price that risk into their decision.
Limited credit (sometimes called thin credit) means there is simply not much evidence either way. A startup that has never borrowed, or a director who has never held personal credit, will have a limited credit profile. Lenders cannot assess risk because there is no track record, so they fall back on other signals such as revenue, business age and the applicant’s personal finances.
Limited credit is generally easier to overcome than bad credit, assuming the director’s personal finances are in reasonable shape. For both profiles, Capital on Tap is a strong starting point because its underwriting focuses on business performance rather than historical credit scoring.
If you are unsure where you stand, the first step is to check your business credit score before applying for anything. Our guide to how to check your business credit score explains how to do this without affecting your score.
Will a Lender Check My Personal Credit for a Business Credit Card?
Yes, in most cases. Here is how it works in practice for the cards on this list.
Capital on Tap (Free and Pro): Runs a soft search on your personal credit file and a separate search on your business file. The personal soft search does not appear on your credit report and cannot be seen by other lenders, even if you are declined.
Barclaycard Select Cashback: Hard credit check at application. Existing Barclaycard customers are assessed using their account history, so less weight is placed on the credit report.
Metro Bank Business: Hard credit check. Existing Metro Bank customers benefit from their banking history being factored into the decision.
NatWest Business Plus and RBS Business Plus: Soft search at the initial enquiry stage, then a full hard check on formal application. The soft enquiry stage lets you test eligibility without risk to your score.
What does this mean in practice? If you have bad credit and want to test the market, Capital on Tap is the only card where applying carries no risk to your credit file at all. For the NatWest and RBS cards, you can at least use the enquiry tool to check likely approval before committing to a full application. For Barclaycard and Metro Bank, you are committing to a hard check from the outset.
For a broader look at cards that offer quick decisions, see our guide to instant approval business credit cards.
How to Choose a Business Credit Card with Bad Credit
Prioritise the credit check type
For most bad credit applicants, the single most important variable is whether the card runs a soft or hard check. A hard check leaves a mark on your credit file for 12 months and can temporarily lower your score, particularly if you make multiple applications in quick succession. Where possible, use eligibility checkers before applying, and limit formal applications to cards you have a realistic chance of being accepted for.
Know your structure
Capital on Tap, the most accessible card on this list for bad credit, is available only to limited companies and LLPs. Sole traders cannot apply. If you are a sole trader, your options are Barclaycard, Metro Bank, NatWest Plus or RBS Plus, each of which comes with its own eligibility requirements. Our guide to the best business credit cards for sole traders covers the broader market for that business structure.
Consider whether you will carry a balance
If you are going to clear your balance in full every month, the APR matters less and cashback becomes more important. If you are likely to carry a balance even occasionally, APR is the number that will determine your actual cost of borrowing. Metro Bank’s 18.9% representative APR is the lowest on this list by a meaningful margin.
Watch for banking relationship requirements
NatWest Plus, RBS Plus and Metro Bank all require you to hold an existing business current account with that provider. Capital on Tap and Barclaycard do not. If you do not already bank with NatWest, RBS or Metro Bank, those three cards are not accessible to you without first opening a current account.
Factor in annual fees
The Capital on Tap Free card, Barclaycard and Metro Bank carry no annual fee. NatWest Plus and RBS Plus charge £70 per cardholder per year. If your business has two cardholders, that is £140 per year before you earn a penny in cashback.
What Is a Personal Guarantee and Do I Need One?
Most business credit card providers ask directors of limited companies to sign a personal guarantee as part of the application. This makes you personally liable for any debt the business cannot repay.
For sole traders, a personal guarantee is effectively automatic because there is no legal separation between you and your business.
Personal guarantees are worth understanding carefully before you apply. If your business defaults on the credit card and you have signed a personal guarantee, the debt can be pursued against your personal assets. This includes the NatWest and RBS Plus cards.
Our guide to directors’ personal guarantees in insolvency covers the implications in detail if you want to understand your exposure before committing.
How to Improve Your Business Credit Score
Getting a business credit card is one of the most effective ways to build your credit score, provided you use it responsibly. Here are the habits that make the most difference.
Pay on time, every time. Payment history is the single most heavily weighted factor in business credit scoring. Set up a direct debit for at least the minimum payment so you never miss a deadline, then pay more when you can.
Keep your credit utilisation low. Using a large proportion of your available credit limit signals financial stress to lenders. Where possible, keep your balance below 30% of your limit.
Avoid multiple applications in quick succession. Each hard credit search leaves a mark on your file. Multiple hard searches in a short period can temporarily reduce your score and signal to lenders that you are under financial pressure.
Register with Companies House and the electoral roll. For limited companies, keeping your Companies House details accurate and current supports your business credit profile. For sole traders, being registered on the electoral roll helps lenders verify your identity and address.
Check your credit report for errors. Credit files occasionally contain mistakes, including accounts that do not belong to you. Errors on your file can suppress your score without your knowledge. Check your business and personal credit reports regularly and dispute anything that is inaccurate.
For a step-by-step guide, see our article on how to check your business credit score.
Alternatives to Business Credit Cards for Bad Credit
A business credit card is not the only way to access credit or manage cash flow. If you have been declined for a card, or if a credit card is not the right fit for your situation, here are the main alternatives worth considering.
Prepaid business expense cards. These are not credit products at all. You load funds onto the card and spend what is there. They do not require a credit check and cannot worsen your credit score, but they also do not provide access to credit. They are useful for expense management and separating business spending from personal accounts. See our comparison of the best prepaid business expense cards for options.
Business bank accounts with no credit check. If your priority is getting a business bank account opened quickly without a credit check, there are dedicated options for that. See our guide to business bank accounts with no credit check.
Business loans for bad credit. Alternative lenders often look at recent business performance and revenue rather than credit history when making lending decisions. The criteria are different from mainstream banks and approval is possible where a credit card application would not succeed. Our guide to getting a business loan with bad credit explains which lenders to consider and how they assess applications.
Merchant cash advances. If your business takes card payments, a merchant cash advance allows you to borrow against future card sales. Repayments are taken as a percentage of your daily card revenue, which means they flex with your trading performance. This can be a practical option for businesses with irregular cash flow. See our merchant cash advance guide for how it works.
Bad Credit Business Card FAQs
UK credit scoring works differently across the three main credit reference agencies (Experian, Equifax and TransUnion), and each uses its own scale. Rather than looking for a specific number, lenders typically look at the underlying record: missed payments, defaults, County Court Judgements and Individual Voluntary Arrangements are the events that create a bad credit profile. A CCJ stays on your business or personal credit file for six years from the date of judgement.
Possibly, depending on the card and the circumstances. Capital on Tap states that no unsatisfied CCJs in the last 12 months is a requirement, but satisfied or older CCJs are assessed case by case. For the other cards on this list, the position is less clear and will depend on the lender’s current underwriting criteria. The soft check on Capital on Tap means you can test your eligibility without risk to your file.
They can. When a lender runs a hard check on your personal credit file as part of a business credit card application, that enquiry appears on your personal report. If your business defaults and you have signed a personal guarantee, the impact on your personal credit can be significant. Capital on Tap’s soft check is the exception: it will not appear on your personal file at all.
True secured business credit cards, where you deposit cash as collateral in exchange for a credit limit, are rare in the UK business market. The products on this list are all unsecured. If your credit situation is severe enough that you cannot access any of them, a prepaid business card is the most practical near-term alternative while you work on rebuilding your credit profile.
Bad credit means you have used credit and not managed it well. No credit history (or limited credit) means there is simply no track record. Lenders treat these differently. Limited credit is generally easier to overcome, particularly for limited companies with strong recent revenue, because lenders like Capital on Tap can assess business performance directly. If you are a new business with no credit history, our guide to the best credit cards for start-ups may be more relevant.
It depends on the card. Capital on Tap runs a soft check only, which does not affect your score. NatWest and RBS run a soft check at the initial enquiry stage, so you can test eligibility safely before committing to a full application. Barclaycard and Metro Bank run hard checks from the point of application. Applying for multiple cards with hard checks in a short period can cause a temporary dip in your score.
This varies significantly by lender and by the strength of your business finances. Capital on Tap offers limits from £1,000 to £250,000, but the limit you receive will reflect your business’s revenue and credit profile. With bad credit, an initial limit at the lower end is more likely. Limits can increase over time with responsible use.
All rates and fees are correct as of March 2026. APR figures are representative examples, and the rate you are offered may differ based on your circumstances. Always check current terms directly with the card provider before applying.
