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Business credit cards uk

Business credit cards are like a financial toolkit for your company. They help manage expenses, build business credit, and often offer rewards. They function similarly to personal credit cards but are tailored to meet the needs of business owners. The primary differences include higher credit limits, business-specific rewards, and enhanced expense-tracking capabilities.
Updated 12 Aug, 2024

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Mette Johansen

Midweight Copywriter

business credit cards

Your ultimate guide to best business credit cards in the UK

Business credit cards are a vital tool for managing company finances, providing the flexibility to cover expenses while offering additional benefits like rewards and expense tracking. Unlike personal credit cards, business credit cards are specifically designed to meet the needs of business owners, featuring higher credit limits, business-related perks, and advanced tools to manage corporate expenses effectively.

Business credit cards uk

Understanding business credit cards

The main difference between personal and business credit cards is their purpose and features. Personal credit cards are tailored for individual spending, whereas business credit cards are equipped with features that assist in managing company finances. These cards are ideal for small and large businesses alike, offering greater control over expenses, the ability to build business credit, and even employee cards for added convenience.

Key benefits of business credit cards in the UK

1. Simplified expense tracking

One of the key advantages of business credit cards is the ability to track expenses easily. With detailed statements that categorize purchases, business owners can keep an eye on their spending, simplifying accounting, budgeting, and tax preparation. This makes it easier to manage company funds and plan for future expenses.

2. Building business credit

Using a business credit card wisely can also help build a solid business credit history. This is essential for securing better loan terms and favorable agreements with suppliers. A strong credit score opens the door to larger business loans, better interest rates, and better overall financial opportunities for growth.

3. Cashback and rewards

Many business credit cards offer cashback or reward points that businesses can redeem for travel, office supplies, or other business-related purchases. These perks can help businesses save money on everyday costs, ultimately improving their bottom line. In addition to cashback, some cards offer travel rewards, allowing businesses to offset the costs of business travel.

Overview of top business credit cards in the UK

When it comes to choosing the best business credit card, there are several options available in the UK, each offering unique benefits. Below are some of the most popular business credit cards:

British Airways Amex

The British Airways American Express Business card is an excellent choice for companies that frequently travel. This card allows businesses to earn Avios points on every purchase, which can be redeemed for flights and upgrades. With comprehensive travel insurance, including coverage for trip cancellations and lost luggage, it provides peace of mind for business owners traveling for work. However, it comes with a high annual fee after the first year, and the rewards are primarily focused on travel, which may not be ideal for businesses with limited travel needs.

American Express Business Gold

The American Express Business Gold card offers flexibility by allowing businesses to earn Membership Rewards points on all purchases. It’s a great option for businesses that want the freedom to choose how they redeem their rewards. The first year’s annual fee is waived, making it an attractive option for new businesses looking to try out a business credit card without an upfront cost. However, after the first year, the annual fee kicks in, and the card’s acceptance may be limited in some locations, particularly for international transactions.

Barclaycard Select Cashback

For businesses seeking a straightforward cashback option, the Barclaycard Select Cashback card offers 1% uncapped cashback on all purchases, with no annual fee. This makes it a cost-effective choice for businesses that want to earn cashback without worrying about spending limits. However, it lacks some of the additional benefits of more premium cards and comes with a higher APR for cash advances, which could be costly if used regularly.

RBS Business Card

The RBS Business Card is a budget-friendly option for small businesses. With a low annual fee and cashback on fuel purchases, this card is particularly beneficial for businesses with substantial fuel expenses. It’s a straightforward card that helps businesses save on travel costs, but its rewards are limited to fuel purchases, which may not appeal to companies with diverse spending needs.

Metro Bank Business Card

Metro Bank’s Business Card stands out for its competitive interest rates and the fact that it comes with no annual fee. This makes it a highly cost-effective solution for businesses looking to reduce their financial burden. The absence of an annual fee also helps businesses keep more money in their accounts, maximizing financial efficiency. However, this card offers fewer rewards and benefits than premium options, which may be a downside for companies looking for extensive perks.

Santander Business Cashback

The Santander Business Cashback card offers uncapped cashback on all purchases, making it a great option for businesses that frequently engage in international transactions. It also eliminates foreign transaction fees, allowing businesses to save on international purchases. However, it does come with an annual fee, and while it offers continuous cashback, it doesn’t provide as many additional benefits as other high-end business credit cards.

Comparing business credit cards in the UK

When comparing business credit cards, it’s essential to consider both the rewards and the associated costs. Each card offers a different set of advantages, and understanding these will help businesses choose the best option based on their specific needs.

British Airways Amex – Pros and Cons

Pros: The British Airways Amex is ideal for businesses that travel frequently, offering generous rewards in the form of Avios points. The card also includes comprehensive travel insurance, providing added value for business owners who travel often.

Cons: The high annual fee after the first year may not justify the rewards for businesses with minimal travel. Additionally, its focus on travel rewards may not appeal to companies that do not travel frequently.

American Express Business Gold – Pros and Cons

Pros: This card is great for businesses that want flexible rewards. The first year’s fee waiver is a huge bonus, and the ability to earn Membership Rewards points on all purchases adds value.

Cons: After the first year, the annual fee kicks in. Additionally, the card’s acceptance is limited in some locations, especially for international transactions, which could be restrictive for businesses operating globally.

Barclaycard Select Cashback – Pros and Cons

Pros: The unlimited cashback and lack of an annual fee make this card an excellent option for companies that want to earn cashback on everyday purchases.

Cons: While cashback is the primary benefit, the card lacks other perks like travel rewards or extended purchase protection, and the higher APR for cash advances can be costly if used often.

RBS Business Card – Pros and Cons

Pros: The low annual fee and cashback on fuel make this card a practical choice for businesses with significant travel or transport costs.

Cons: The limited cashback categories and lack of travel rewards may not suit businesses with broader needs or those seeking a more diverse rewards program.

Metro Bank Business Card – Pros and Cons

Pros: No annual fee and competitive interest rates make this card a budget-friendly option for businesses looking to minimize their expenses.

Cons: The card doesn’t offer the extensive rewards or perks available with higher-end options, which may make it less appealing for companies seeking more benefits.

Santander Business Cashback – Pros and Cons

Pros: Uncapped cashback and the absence of foreign transaction fees make this card a solid choice for businesses that deal with international transactions.

Cons: The annual fee and limited additional benefits could deter businesses that are looking for more comprehensive rewards or travel perks.

Business credit cards uk

Choosing the right business credit cards in the UK

When selecting the ideal business credit card for your company, it’s crucial to consider various factors to ensure the card meets your business needs and provides the best possible benefits. A business credit card can be a powerful tool for managing finances, earning rewards, and streamlining business operations. However, not all credit cards are created equal, so evaluating key features is essential before making a choice.

Key factors to consider

Several factors play a pivotal role in choosing the right business credit card for your business. Here’s a breakdown of what you should prioritize during your selection process:

Annual Fees vs. Rewards

One of the first things to evaluate is the annual fee of the card. While some business credit cards come with hefty fees, they may offer significant rewards or exclusive perks that justify the cost. On the other hand, cards with lower annual fees may have fewer benefits. To determine what’s best for your business, weigh the costs against the potential rewards and perks. A card with a higher annual fee could be worth it if it offers extensive rewards or benefits tailored to your business’s needs.

Spending Patterns and Reward Programs

Understanding your business’s spending habits is crucial in selecting the right rewards program. For example, if travel is a significant part of your business, a card that offers travel-related rewards could be extremely beneficial. Cards that offer cashback or points for office supplies, gas, or other business-related expenses can also optimize your spending. By aligning your rewards with your business needs, you can make the most out of your credit card’s benefits.

Interest Rates

Interest rates, or Annual Percentage Rates (APRs), are another important consideration, especially if you plan to carry a balance month to month. Lower interest rates can help save money on interest charges over time, which is essential for businesses that are not always able to pay off their credit card balance in full. Choosing a card with a competitive APR can reduce long-term costs significantly.

Credit Limits

The credit limit offered by a business credit card is essential for ensuring that your business has enough flexibility to cover its expenses. A higher credit limit allows for better cash flow management, enabling you to handle larger transactions or unexpected expenses. However, it’s important to remember that responsible credit usage is key to maintaining a healthy financial situation for your business.

Additional Perks and Benefits

Business credit cards often come with added perks beyond rewards. Some cards provide travel insurance, purchase protection, and extended warranties, which can be particularly valuable for business owners. These extra benefits can provide peace of mind and protect your business transactions, making it worth looking into what additional offerings come with each card.

To make an informed decision, it’s essential to compare the key features of different business credit cards available in the UK. Each card comes with unique benefits, and evaluating these can help you determine which card fits your business needs best.

Consider your spending habits

A comparative analysis of business credit cards will help you identify the one that aligns with your company’s spending patterns. For instance, if your business frequently incurs travel-related costs, a card with travel rewards could offer significant benefits. On the other hand, if your expenses revolve around office supplies, look for cards that offer cashback or points for these types of purchases. Ultimately, choose a card that maximizes rewards based on your typical spending and minimizes costs.

Features and benefits to look for

When comparing different cards, it’s important to assess the rewards programs, expense tracking tools, and any additional perks each card offers. Some business credit cards come with robust tools for managing expenses and simplifying accounting, which can save time and effort for your business. Review the various benefits, from cashback offers to travel perks, and determine which will provide the most value for your business.

Rewards program insights

Many cards offer rewards programs that cater to specific categories, such as travel, dining, or office supplies. Some cards offer flat-rate cashback, while others provide higher rewards for certain spending categories. Review the rewards program details carefully and select a card that offers the highest rewards in the areas your business spends most.

Types of business credit cards in the UK

There are two main types of business credit cards to consider when making your choice: general-purpose cards and co-branded cards. Each comes with its own advantages and may be more suitable depending on your business’s goals.

Standard business credit cards

Standard business credit cards are perfect for companies that want simplicity and straightforward benefits. These cards typically have no annual fees and offer cashback on all purchases, making them ideal for businesses looking to minimize costs without sacrificing rewards. They are particularly well-suited for small businesses or companies that don’t want to deal with complex benefits structures.

Premium business credit cards

For businesses that frequently travel or have higher expenses, premium business credit cards offer a wealth of enhanced rewards. These cards often come with higher annual fees but offer significant perks such as travel insurance, airport lounge access, and greater rewards on travel-related expenses. If your business travels often, these premium cards can be highly beneficial.

The application process for business credit cards

Once you’ve chosen the right business credit card, the next step is applying. The application process for business credit cards typically involves providing various details about your business and financial situation.

To apply for a business credit card, you will typically need to provide the following:

  • Business Information: Including your company name, address, and registration number.
  • Financial Information: Such as business revenue, tax returns, and bank statements.
  • Personal Information: This includes the personal identification and credit history of the business owner or responsible party.

Step-by-step guide to applying

  1. Choose the right card: Review the available options and choose a business credit card that aligns with your company’s needs.
  2. Gather documentation: Ensure you have all the necessary documents, including financial and personal information.
  3. Complete the application: You can typically complete the application form online or in-person, depending on the card issuer.
  4. Submit your application: Once your application is completed, submit it along with the required documents.
  5. Wait for approval: After submission, the card issuer will review your application and inform you of the decision.
Business credit cards uk

Tips for getting approved for a business credit card

When applying for a business credit card, ensuring approval requires a few essential steps. By focusing on your creditworthiness, providing accurate information, and preparing the necessary documentation, you can increase your chances of a successful application.

Maintain a healthy credit score

One of the most important factors in securing approval for a business credit card is maintaining good credit. Both your personal and business credit scores play a significant role in the decision-making process. Lenders will review your credit history to assess your reliability in repaying debt. It is essential to regularly check your credit scores and take steps to improve them, such as paying off debts and avoiding late payments. A healthy credit score signals to lenders that your business is financially responsible and capable of handling credit.

Ensure your application information is accurate

Before submitting your business credit card application, make sure that all the information you provide is accurate. Inaccuracies can cause delays or even lead to rejection. Double-check your personal and business details, including your business’s financials, tax ID, and contact information. Mistakes, even small ones, can hurt your credibility, so ensure everything is up to date and properly filled out.

Prepare financial documents in advance

Most business credit card applications require supporting financial documents. These may include your business’s tax returns, balance sheets, profit and loss statements, and bank statements. Having these documents ready ahead of time can make the application process smoother and quicker. It shows the lender that your business is organized and financially stable, further increasing the chances of approval.

Common pitfalls to avoid

When applying for a business credit card, there are common mistakes that applicants often make. Being aware of these pitfalls and avoiding them can significantly improve your chances of getting approved and making the most out of your credit card.

Overlooking fees

Every credit card comes with associated fees, such as annual fees, late payment fees, foreign transaction fees, and more. It’s easy to overlook these charges when comparing card offers, but they can add up quickly and affect your overall financial health. Take time to carefully review the fee structure of each card and ensure it aligns with your business’s financial situation and needs.

Ignoring terms and conditions

Reading the fine print is crucial when applying for any financial product, including business credit cards. The terms and conditions outline the interest rates, fees, and other important information about how the card works. Understanding these details can help you avoid unpleasant surprises later. It also helps you make a more informed decision about whether the card is suitable for your business.

Applying for multiple cards at once

While it may seem tempting to apply for several business credit cards to increase your options, this approach can negatively impact your credit score. Each credit inquiry can cause a slight dip in your score, and too many inquiries within a short period could raise red flags for lenders. Stick to applying for one or two cards that best meet your needs and offer the most benefits to your business.

Managing business credit cards effectively

Once you have secured a business credit card, using it responsibly is crucial. Managing your business credit card well not only helps maintain a healthy credit score but also maximizes the rewards and benefits your card offers.

Responsible usage Is key

To get the most out of your business credit card, it’s important to use it responsibly. This includes making timely payments, keeping your credit utilization ratio low, and regularly monitoring your account. By doing so, you can maintain a strong credit profile for your business, which will benefit you when seeking loans or additional credit in the future. Responsible usage helps avoid unnecessary debt accumulation and strengthens your financial standing.

Maximizing the benefits of your business credit card

To truly benefit from a business credit card, there are a few strategies you can implement to maximize rewards and minimize costs.

Pay off your balance in full

One of the most effective ways to avoid unnecessary interest charges is to pay off your balance in full each month. Many business credit cards offer a grace period during which you can avoid interest on new purchases by paying the balance in full. This practice not only helps you save money but also ensures that you do not carry over any debt that could accumulate interest charges over time.

Track your expenses efficiently

Many business credit cards come with tools that help you track and categorize your expenses. Use these features to keep an eye on your spending, ensure you stay within your budget, and have a clear overview of your business’s financial health. By tracking your expenses closely, you can make informed decisions about where to cut costs or invest more.

Leverage rewards programs

Most business credit cards come with a rewards program that offers points, cash back, or travel rewards for eligible purchases. Maximize the benefits of these rewards programs by using your business credit card for all eligible purchases, especially those that you would normally spend on. This can help you accumulate rewards faster, which can be redeemed for things like office supplies, travel, or even cash back, ultimately reducing your overall expenses.

Choosing the right card for your business needs

Business credit cards can offer various solutions for managing expenses, building credit, and earning rewards. It’s important to understand the different types of cards available and select one that fits your business’s specific needs. Whether you’re looking for cards with low-interest rates, extensive rewards programs, or cards tailored to certain industries, there are options available that can benefit your business in different ways.

FAQs

What is the difference between a personal credit card and a business credit card?

Business credit cards are designed for business expenses and offer features like higher credit limits, business-specific rewards, and detailed expense tracking. On the other hand, personal credit cards are intended for individual use and typically offer rewards and benefits geared towards personal spending.

How can a business credit card help build business credit?

Using a business credit card responsibly—paying bills on time and keeping balances low—can help build a strong business credit profile. This can lead to better financing options and terms for your business in the future.

What factors should I consider when choosing a business credit card in the UK?

When choosing a business credit card, consider factors like annual fees, rewards programs, interest rates, credit limits, and additional perks such as travel insurance or purchase protection.

Are there any fees associated with business credit cards?

Business credit cards can have various fees, including annual, late payment, foreign transaction, and cash advance fees. It is essential to read the terms and conditions to understand all associated costs.

Can I use a business credit card for personal expenses?

While it is possible to use a business credit card for personal expenses, it is not recommended. Mixing personal and business expenses can complicate bookkeeping and tax reporting. It’s best to keep business and personal finances separate.

Mette Johansen

Content Writer at OneMoneyWay

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