Small Business Credit Cards

A credit card is often essential for small business owners to enable them to purchase items quickly and are unsecured against business assets.

There are many credit card companies that offer new and existing businesses the opportunity to get a corporate card with great offers and fast approval. You can apply for your card even if you have bad credit as a sole trader. Here are the best deals.

Business Credit Card Offers and Comparison

Although there is still a credit crunch in place, it's wise if you keep your personal and business expenses separate for VAT and accounting purposes. That's why it's advisable to get a business credit card even if you're trading as a sole trader or in a Limited Liability Partnership. If you have a limited company, then you should have cards in the name of your company.

There are few offers on the marketplace at the moment but when comparing credit cards you should look out for the following:

  • Does it charge an annual fee?
  • What is the annual APR if you don't pay the balance off in full?
  • Are there any introductory rates such as 0% for purchases for a year?
  • Are there any balance transfer rates similar to those offered by personal cards?

Some of The Best Credit Cards for Business Users

See our comprehensive comparison table below for the full list. We've picked two cards we believe offer a great deal for small business owners.

Barclays or Barclaycard Flex, Select and Platinum

Barclaycard Flex Business Credit CardBarclaycard is a well-known and trusted organisation when it comes to using credit cards for business purposes.

Barclaycard introduced the first credit card into the UK in 1966 and currently has over 10 million customers. They also offer merchant accounts to accept payments from customers.

  • Choose from a range of credit or charge cards.
  • The Flex card carries no annual fees and comes with a competitive interest rate.
  • The Select card usually has no annual fee and includes Purchase Protection and Cardholder Misuse Insurance.
  • A £150 yearly fee gets you the Platinum Plus Card that includes a much lower interest rate, up to £400 cashback, two Priority Pass lounge visits and enhanced travel insurance.

You manage most of these cards via your online account and includes helpful reports to manage your company expenditure each month.

Barclaycard only offers MasterCard credit access now rather than the previous Visa version.

Capital on Tap

Capital On Tap Contactless Credit CardA new type of lender has now entered the commercial market at lower interest rates than a standard credit card. If you're eligible, your business effectively receives an unsecured business loan that you spend against using a credit or debit card.

You access the following benefits:

  • Interest rates between 9.99% and 39.9% depending on your credit history.
  • No annual card fees.
  • No foreign exchange fees on overseas purchases.
  • Up to £25,000 credit limit to expand your business.
  • Free cash withdrawals at UK ATM's.

You can either use the funding for monthly expenses or transfer the entire balance into your business banking current account.

Business Credit Card Comparison

Here's a comparison of other cards available. All banks offer credit cards for businesses including HSBC, Barclays Bank (Barclaycard), NatWest and American Express. At the time of publication, the following offers existed (which is why we recommend the two above):

Bank Annual Fee APR % Interest-free Period
Metro Bank £0 14.9% 56 Days
AMEX Basic £0 Charge Card 42 Days
HSBC £0 (£32 after 1 year) 15.9% 56 Days
Barclaycard Flex £0 24.9% 56 Days
Capital on Tap £0 9.9%-39.9% 56 Days
Santander £30 23.7% 56 Days
Lloyds Bank £32 22.4% 45 Days

The interest-free period denotes the maximum amount of time between a card purchase and when you make the payment. All data correct as of 8th September 2020 for a range of credit cards marketed towards small businesses.

Capital on Tap is an unsecured business loan effectively loaded onto a credit card at lower than standard interest rates.

Sources of Data for Credit Card Comparison