Business credit cards

Business credit cards can be used to manage employee expenses too. This provides an audit trail of spend and can include spending limits to help control costs. And, those businesses with members of staff that need to travel abroad or conduct business internationally can look for a business credit card with reduced foreign exchange fees. Businesses with large and frequent international transactions or for those operating in multiple jurisdictions then a specialist foreign exchange broker may be more financially beneficially. 

Should I have a business credit card?

• Manage your cashflow with an interest free period
• Easy to track spending and review business expenses
• Separate personal and business costs for easier accounting
• Convenient way to purchase goods for your business, online and in store
• Remove the need for petty cash – easy to track and no need for reimbursement
• Easy for purchases internationally or expenses abroad
• Build the credit score of your business
• Some business credit cards offer cashback and rewards

Connect your business credit card to accounting software

You can connect your business credit card to keep track of all purchases in your relevant accounting software. This includes being able to capture images of your business receipts, so these are stored and matched to expenses leaving your business credit card or business current account.

How do I apply for a business credit card?

You should start by comparing business credit cards on our chart above. The key things to compare are each card’s APR, annual fee, any cashback or rewards, associated costs and the interest-free grace period, as well as if there are any introductory 0% deals on offer. 

Next, you can apply for the card with your preferred credit card lender. In some cases you’ll need to be an existing business banking customer with the brand, but not always, so make sure to check the criteria before you apply. Alongside that, make sure you meet all other eligibility requirements – some lenders have minimum annual turnover requirements and others have different cards for different kinds of businesses, so it’s important to check where you stand.

You can typically apply online or over the phone and will be expected to answer some questions about the business, its turnover (or expected turnover), financial information and the kind of credit limit you’re hoping for, together with the names of any additional cardholders. You’ll likely be expected to provide copies of bank statements and related financial and personal details, including tax statements.

The lender will then perform a credit check on your business – and sometimes a personal credit check too – and will offer you a deal accordingly, with a higher credit score meaning you’ll be eligible for better interest rates and potentially a higher credit limit. Your application will then be approved or declined and, if it’s the former, you’ll be sent your new card(s), usually within five to 10 working days. You can check your personal credit score for free.

Can I use a personal credit card for business?

Yes, but it’s not advisable because you need to be able to identify and track those items that are for your business use only to complete your company accounts. A separate card and account make this more straight forward and simple. 

If you have employees, then sharing your personal credit card is also a security risk and if misused could impact your credit score. 

How to get a business credit card for a new business

The route to getting a business credit card is largely the same whether you’re a new business or a more established one, the main differences being in terms of the information you’ll be expected to provide, and the credit check process.

As a new business you won’t have any evidence of turnover, cashflow or trading history, so you’ll instead have to provide estimates, and will likely have to show a business plan as well. Similarly, your business won’t have built up its own credit score yet which means your personal score will come under greater scrutiny. It’s therefore wise to check your credit score ahead of time and see if you can make any improvements.

It’s also more likely that you’ll be asked to provide a personal guarantee, which states that you’ll be personally liable for any debts should your business default on the repayments. This may not always be required, and in some cases may be required even if you’re an established company, but it’s worth bearing in mind if you’re a new business.