The Best Business Credit Cards in the UK: Top Picks for 2023

Business credit cards are an essential tool for any business owner, regardless of the size of their company. With so many options available, choosing the right card can be a daunting task. In this article, we will explore the best business credit cards in the UK, providing an overview of their features and benefits.

One of the most important factors to consider when selecting a business credit card is the rewards programme. Many credit cards offer cashback or reward points for purchases made with the card, which can be redeemed for a variety of benefits. Other features to consider include the interest rate, credit limit, and any additional perks such as travel insurance or airport lounge access. By comparing the various options available, business owners can find a credit card that best suits their needs.

In addition to rewards and perks, business credit cards can also help to build a company’s credit score. By using the card responsibly and making timely payments, businesses can establish a positive credit history and improve their chances of obtaining financing in the future. With so many benefits to be gained, choosing the right business credit card is a crucial decision for any business owner.

You may also be interested in reading our expert guide about  best UK business bank accounts that we created this year.

Benefits of Business Credit Cards

Business credit cards offer a range of benefits for small business owners. In this section, we will cover some of the key benefits of business credit cards.

Rewards

One of the main benefits of business credit cards is the rewards they offer. Many business credit cards offer rewards programs that allow you to earn points or cashback on your purchases. These rewards can be used to offset the cost of future purchases or redeemed for other rewards such as travel or gift cards.

Annual Fees

Some business credit cards come with an annual fee, but many do not. If you use your credit card frequently, the rewards you earn may offset the cost of the annual fee. Be sure to compare the rewards offered by different credit cards to determine whether the annual fee is worth paying.

Interest Rates

Interest rates on business credit cards can vary widely. Be sure to compare interest rates when choosing a credit card. If you plan to carry a balance on your credit card, look for a card with a low interest rate.

Credit Limits

Business credit cards often come with higher credit limits than personal credit cards. This can be beneficial for businesses that need to make large purchases. Be sure to choose a credit card with a credit limit that meets your business needs.

Cashback

Many business credit cards offer cashback rewards. Cashback rewards can be a great way to offset the cost of business expenses. Be sure to compare the cashback rewards offered by different credit cards to determine which card offers the best value.

Discounts

Some business credit cards offer discounts on purchases from select merchants. These discounts can be a great way to save money on business expenses. Be sure to compare the discounts offered by different credit cards to determine which card offers the best value.

Overall, business credit cards offer a range of benefits for small business owners. Be sure to compare the features and benefits of different credit cards to determine which card is right for your business.

Types of Business Credit Cards

When it comes to business credit cards, there are a variety of options available to UK business owners. Here are some of the most popular types of business credit cards offered by major UK banks and financial institutions:

American Express

American Express offers a range of business credit cards that are designed to suit the needs of different types of businesses. These cards come with a range of benefits, such as cashback rewards, travel perks, and access to exclusive events. Some of the most popular American Express business credit cards include the American Express Gold Business Card and the American Express Platinum Business Card.

Barclaycard

Barclaycard offers a range of business credit cards that are designed to help businesses manage their expenses and cash flow. These cards come with a range of benefits, such as cashback rewards, travel perks, and access to exclusive events. Some of the most popular Barclaycard business credit cards include the Barclaycard Business Credit Card and the Barclaycard Fuel+ Card.

Capital on Tap

Capital on Tap offers a range of business credit cards that are designed to help businesses manage their expenses and cash flow. These cards come with a range of benefits, such as cashback rewards, travel perks, and access to exclusive events. Some of the most popular Capital on Tap business credit cards include the Capital on Tap Business Credit Card and the Capital on Tap Business Rewards Card.

Metro Bank

Metro Bank offers a range of business credit cards that are designed to help businesses manage their expenses and cash flow. These cards come with a range of benefits, such as cashback rewards, travel perks, and access to exclusive events. Some of the most popular Metro Bank business credit cards include the Metro Bank Business Credit Card and the Metro Bank Business Rewards Card.

Royal Bank of Scotland

Royal Bank of Scotland offers a range of business credit cards that are designed to help businesses manage their expenses and cash flow. These cards come with a range of benefits, such as cashback rewards, travel perks, and access to exclusive events. Some of the most popular Royal Bank of Scotland business credit cards include the Royal Bank of Scotland Business Credit Card and the Royal Bank of Scotland Business Rewards Card.

Overall, there are plenty of options for UK businesses looking for a credit card to help manage their expenses and cash flow. It’s important to compare the different options available and choose a card that best suits your business needs.

Eligibility and Decision Criteria

Credit History

When applying for a business credit card in the UK, the applicant’s credit history is usually taken into account. If the applicant has a history of missed payments or defaults, it may affect their chances of being approved for a business credit card. Lenders will typically look at the credit history of the business as well as the personal credit history of the applicant.

Credit Score

Credit scores are another important factor that lenders consider when deciding whether to approve a business credit card application. A good credit score can increase the chances of approval, while a poor credit score may result in a rejection. A credit score of 700 or above is generally considered good in the UK.

Turnover

The turnover of the business is another crucial factor that lenders consider when assessing eligibility for a business credit card. Lenders may require a minimum annual turnover to approve an application for a business credit card. The required minimum turnover can vary depending on the lender and the type of business credit card.

Payment Terms

Lenders will also look at the payment terms of the business. If the business has a history of late payments or has a high level of outstanding debt, it may affect the chances of being approved for a business credit card. Lenders may also require that the business has been trading for a certain period of time before approving an application.

Personal Guarantee

Some lenders may require a personal guarantee from the applicant before approving an application for a business credit card. This means that the applicant will be personally liable for any debt incurred on the business credit card. The personal guarantee may be required if the business has a poor credit history or is a new business without a proven track record.

In summary, when applying for a business credit card in the UK, lenders will typically consider the credit history and credit score of both the applicant and the business, as well as the turnover of the business, payment terms, and whether a personal guarantee is required.

Features and Benefits

When it comes to choosing a business credit card, it’s important to consider the features and benefits that can help you manage your expenses and earn rewards. Here are some of the key features and benefits to look for:

Flexible Repayment Options

Many business credit cards offer flexible repayment options, such as the ability to choose between paying the balance in full each month or carrying a balance with interest. This can help you manage your cash flow and avoid unnecessary fees.

Employee Cards

Some business credit cards allow you to issue additional cards to your employees, which can help you track expenses and earn rewards on their purchases. You can also set spending limits for each card to control costs and prevent overspending.

Set Spending Limit

Setting a spending limit on your business credit card can help you stay within your budget and avoid overspending. Many cards allow you to set a limit for each employee card as well, giving you even more control over your expenses.

Travel Benefits

If you travel frequently for business, look for a credit card that offers travel benefits such as airline miles, hotel rewards, and travel insurance. These benefits can help you save money and make your trips more comfortable and convenient.

Overall, choosing a business credit card with the right features and benefits can help you manage your expenses, earn rewards, and make your business more efficient and profitable.

Additional Considerations

Foreign Transaction Fees

When considering a business credit card, it is important to take into account any foreign transaction fees that may be incurred. These fees can vary from card to card and can add up quickly, especially if you frequently travel abroad for business. Some cards offer no foreign transaction fees, while others charge up to 3% per transaction. Be sure to check the terms and conditions of the card before applying to avoid any surprises.

Late Payment Fees

Late payment fees can be a costly expense for any business. It is important to understand the late payment fees associated with the credit card you choose. Some cards may charge a flat fee, while others charge a percentage of the balance due. It is recommended to set up automatic payments or reminders to avoid late payments and potential fees.

Petty Cash

If your business requires petty cash, some credit cards offer the option to withdraw cash from an ATM. However, this option may come with additional fees and higher interest rates. It is important to weigh the pros and cons of using your credit card for petty cash before making a decision.

Credit Facility

A credit facility is an agreement between a lender and borrower that allows the borrower to access a specific amount of credit. Some business credit cards offer a credit facility, which can be useful for managing cash flow. However, it is important to understand the terms and conditions of the credit facility, including interest rates and repayment terms.

New Business

If you are a new business, it may be more difficult to be approved for a business credit card. Some cards may require a certain amount of time in business or a minimum revenue. It is important to research the requirements of the card before applying. Additionally, if you are approved for a card, it is recommended to use it responsibly to build credit for your business.

Overall, when choosing a business credit card, it is important to consider all aspects of the card, including fees, credit facilities, and eligibility requirements. By doing so, you can make an informed decision that best suits the needs of your business.

Conclusion

In conclusion, business credit cards can be a valuable tool for business owners who want to manage their finances more effectively. The best business credit cards in the UK offer a range of benefits, including cashback rewards, travel perks, and introductory offers.

When choosing a business credit card, it is important to consider your specific needs and spending habits. The right card for you will depend on factors such as your business size, the type of expenses you typically incur, and your credit score.

Some of the top business credit cards in the UK include the American Express Gold Business Card, the Barclaycard Business Credit Card, and the HSBC Business Credit Card. Each of these cards offers unique benefits and features that can help you save money and manage your finances more effectively.

Overall, business credit cards can be a valuable tool for business owners who want to streamline their finances and take advantage of rewards and perks. By choosing the right card and using it responsibly, you can enjoy a range of benefits and help your business thrive.