Business and Company Credit Cards | moneyfacts.co.uk

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Barclaycard Business Logo
Barclaycard Business Select Cashback Credit Card
Interest Free Days
56
APR
21.9%
Additional Information
1% cashback on purchases T&Cs apply
£12 late payment fee
Up to 66% off AA Business Breakdown Cover T&Cs apply
Go To Provider's Site
Representative Example:Based on a credit limit of £1200.00 charged at 21.9% variable per annum for purchases. Representative 21.9% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
£10K turnover required. Subject to application, financial circumstances & borrowing history. T&Cs apply
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
Balance transfer not available
Introductory purchase rate & period
No 0% introductory period

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 1.0% or £5.00 each month. or the total of any interest, default fees and charges plus 1% of the outstanding balance.

Standard Interest Rates

For purchase
Monthly 1.663%
APR 21.9%
For cash withdrawals
Monthly 2.075%
Annual 27.90%
For balance transfers
Monthly Balance transfer not available
Annual Balance transfer not available
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 56 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee N/A
Balance transfer fee Balance transfer not available
Cash withdrawal fee 3.00% - Min £3.00
Money transfer fee Money transfer not available
Using a card abroad:
European Union 2.99%
Worldwide 2.99%
NatWest Logo
NatWest Business Credit Card Mastercard
Interest Free Days
56
APR
24.3%
Additional Information
No annual fee in year 1
No introductory 0% period for purchases or balance transfers
Free online account servicing
Go To Provider's Site
Representative Example:Based on a credit limit of £1200.00 charged at 18.268% variable per annum for purchases. Representative 24.3% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
Sole traders, Ltd Co, LLP, Partnerships, Charities, Clubs and Societies - UK based with turnover < £2m per annum.
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
No charge
Introductory purchase rate & period
No 0% introductory period

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 3.0% or £5.00 each month. or the balance if less; or that month's interest, any default charges, 1/12th of any annual fee and 3% of the remaining balance.

Standard Interest Rates

For purchase
Monthly 1.408%
APR 24.3%
For cash withdrawals
Monthly 1.408%
Annual 18.27%
For balance transfers
Monthly 1.408%
Annual 18.27%
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 56 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee Year 1 - £0.00, Year 2 onwards - £30.00 per annum
Balance transfer fee No charge
Cash withdrawal fee 3.00% - Min £3.00
Money transfer fee Money transfer not available
Using a card abroad:
European Union 2.95%
Worldwide 2.95%
Royal Bank of Scotland Logo
Royal Bank of Scotland Business Credit Card Mastercard
Interest Free Days
56
APR
24.3%
Additional Information
No annual fee in year 1
No introductory 0% period for purchases or balance transfers
Free online account servicing
Go To Provider's Site
Representative Example:Based on a credit limit of £1200.00 charged at 18.268% variable per annum for purchases. Representative 24.3% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
Sole traders, Ltd Co, LLP, Partnerships, Charities, Clubs and Societies - UK based with turnover < £2m per annum.
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
No charge
Introductory purchase rate & period
No 0% introductory period

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 3.0% or £5.00 each month. or the balance if less; or that month's interest, any default charges, 1/12th of any annual fee and 3% of the remaining balance.

Standard Interest Rates

For purchase
Monthly 1.408%
APR 24.3%
For cash withdrawals
Monthly 1.408%
Annual 18.27%
For balance transfers
Monthly 1.408%
Annual 18.27%
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 56 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee Year 1 - £0.00, Year 2 onwards - £30.00 per annum
Balance transfer fee No charge
Cash withdrawal fee 3.00% - Min £3.00
Money transfer fee Money transfer not available
Using a card abroad:
European Union 2.95%
Worldwide 2.95%
NatWest Logo
NatWest Business Plus Credit Card Mastercard
Interest Free Days
56
APR
29.0%
Additional Information
No balance transfer fee
£70 annual fee per card
Free online account servicing
Go To Provider's Site
Representative Example:Based on a credit limit of £1200.00 charged at 14.816% variable per annum for purchases. Fee of £70 per annum applies. Representative 29.0% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
Sole traders, Ltd Co, LLP, Partnerships, Charities, Clubs and Societies - UK based with turnover < £6m per annum.
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
No charge
Introductory purchase rate & period
No 0% introductory period

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 3.0% or £5.00 each month. or the balance if less; or that month's interest, any default charges, 1/12th of any annual fee and 3% of the remaining balance.

Standard Interest Rates

For purchase
Monthly 1.158%
APR 29.0%
For cash withdrawals
Monthly 1.158%
Annual 14.82%
For balance transfers
Monthly 1.158%
Annual 14.82%
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 56 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee £70.00 per annum
Balance transfer fee No charge
Cash withdrawal fee 3.00% - Min £3.00
Money transfer fee Money transfer not available
Using a card abroad:
European Union 0.00%
Worldwide 0.00%
Royal Bank of Scotland Logo
Royal Bank of Scotland Business Plus Credit Card Mastercard
Interest Free Days
56
APR
29.0%
Additional Information
No balance transfer fee
£70 annual fee per card
Free online account servicing
Go To Provider's Site
Representative Example:Based on a credit limit of £1200.00 charged at 14.816% variable per annum for purchases. Fee of £70 per annum applies. Representative 29.0% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
Sole traders, Ltd Co, LLP, Partnerships, Charities, Clubs and Societies - UK based with turnover < £6m per annum.
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
No charge
Introductory purchase rate & period
No 0% introductory period

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 3.0% or £5.00 each month. or the balance if less; or that month's interest, any default charges, 1/12th of any annual fee and 3% of the remaining balance.

Standard Interest Rates

For purchase
Monthly 1.158%
APR 29.0%
For cash withdrawals
Monthly 1.158%
Annual 14.82%
For balance transfers
Monthly 1.158%
Annual 14.82%
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 56 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee £70.00 per annum
Balance transfer fee No charge
Cash withdrawal fee 3.00% - Min £3.00
Money transfer fee Money transfer not available
Using a card abroad:
European Union 0.00%
Worldwide 0.00%
Capital on Tap Logo
Capital on Tap Business Visa
Interest Free Days
56
APR
39.9%
Additional Information
Free UK ATM withdrawals and 0% commission on FX
No introductory 0% purchase or balance transfer terms
Business rewards available for a fee
Go To Provider's Site
Representative Example:Based on a credit limit of £1200.00 charged at 39.41% variable per annum for purchases. Representative 39.9% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
Minimum turnover required: £24K Minimum trading term: 3 months.
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
Balance transfer not available
Introductory purchase rate & period
No 0% introductory period

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 10.0% or £250.00 each month.

Standard Interest Rates

For purchase
Monthly 2.840%
APR 39.9%
For cash withdrawals
Monthly 3.430%
Annual 49.89%
For balance transfers
Monthly Balance transfer not available
Annual Balance transfer not available
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 56 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee N/A
Balance transfer fee Balance transfer not available
Cash withdrawal fee No charge
Money transfer fee Money transfer not available
Using a card abroad:
European Union 0.00%
Worldwide 0.00%
Barclaycard Business Logo
Barclaycard Business Premium Plus Credit Card
Interest Free Days
56
APR
49.4%
Additional Information
Save 2% on foreign exchange fees
£150 annual fee
Introductory 0% on purchases for 6 months from account opening
Go To Provider's Site
Representative Example:Based on a credit limit of £1200.00 charged at 14.9% variable per annum for purchases. Fee of £150 per annum applies. Representative 49.4% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
£10K turnover required. Subject to application, financial circumstances & borrowing history. T&Cs apply
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
Balance transfer not available
Introductory purchase rate & period
0.0% for 6 months.

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 1.0% or £5.00 each month. or the total of any interest, default fees and charges plus 1% of the outstanding balance.

Standard Interest Rates

For purchase
Monthly 1.167%
APR 49.4%
For cash withdrawals
Monthly 2.075%
Annual 27.90%
For balance transfers
Monthly Balance transfer not available
Annual Balance transfer not available
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 56 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee £150.00 per annum
Balance transfer fee Balance transfer not available
Cash withdrawal fee 3.00% - Min £3.00
Money transfer fee Money transfer not available
Using a card abroad:
European Union 0.99%
Worldwide 0.99%
Metro Bank Logo
Metro Bank Business Credit Card Mastercard
Interest Free Days
56
APR
14.9%
Additional Information
No annual fee
No introductory 0% period for purchases or balance transfers
Have/open Metro Bank business/commercial current account
Representative Example:Based on a credit limit of £1200.00 charged at 14.9% variable per annum for purchases. Representative 14.9% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
Available subject to status to Metro Bank Business or Commercial Current Account customers
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
No charge
Introductory purchase rate & period
No 0% introductory period

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 5.0% or £20.00 each month. or the total of any interest, default fees and charges plus 5% of the outstanding balance.

Standard Interest Rates

For purchase
Monthly 1.164%
APR 14.9%
For cash withdrawals
Monthly 1.164%
Annual 14.90%
For balance transfers
Monthly 1.164%
Annual 14.90%
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 56 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee N/A
Balance transfer fee No charge
Cash withdrawal fee No charge
Money transfer fee Money transfer not available
Using a card abroad:
European Union 0.00%
Worldwide 2.99%
HSBC Logo
HSBC Commercial Credit Card Visa
Interest Free Days
56
APR
22.0%
Additional Information
No annual fee to pay for the first year
No introductory 0% period for purchases
Existing business current account customers only
Representative Example:Based on a credit limit of £1200.00 charged at 15.9% variable per annum for purchases. Representative 22.0% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
Customers must have HSBC business current account and set up direct debit from that account to apply for the card.
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
Balance transfer not available
Introductory purchase rate & period
No 0% introductory period

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 1.5% or £5.00 each month.

Standard Interest Rates

For purchase
Monthly 1.238%
APR 22.0%
For cash withdrawals
Monthly 1.238%
Annual 15.90%
For balance transfers
Monthly Balance transfer not available
Annual Balance transfer not available
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 56 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee Year 1 - £0.00, Year 2 onwards - £32.00 per annum
Balance transfer fee Balance transfer not available
Cash withdrawal fee 2.99% - Min £3.00
Money transfer fee Money transfer not available
Using a card abroad:
European Union 2.99%
Worldwide 2.99%
Lloyds Bank Logo
Lloyds Bank Business Credit Card Mastercard
Interest Free Days
45
APR
22.4%
Additional Information
Detailed monthly statements
£32 annual fee
Open to existing business current account customers
Representative Example:Based on a credit limit of £1200.00 charged at 17.57% variable per annum for purchases. Fee of £32 per annum applies. Representative 22.4% APR variable.
Criteria
Extra Info.
Bill Payment
Standard Interest Rates
Benefits and Features
Charges

Application Criteria

Existing customers only
Account with card provider required
Additional criteria
Open to existing business current account customers.
Apply for this card
Internet
In branch
Post
Telephone

Additional Information

Introductory balance transfer rate & period
No introductory balance transfer terms available
Balance transfer fee
Balance transfer not available
Introductory purchase rate & period
No 0% introductory period

Bill Payment

Standing order (fixed amount)
Direct debit (minimum payment)
Direct debit (fixed monthly amount)
Direct debit (fixed % of balance)
Direct debit (full amount)
Minimum monthly payment
Greater of 1.0% or £5.00 each month. or the total of any interest, default fees and charges, 1/12th of annual fee plus 1% of the outstanding balance.

Standard Interest Rates

For purchase
Monthly 1.358%
APR 22.4%
For cash withdrawals
Monthly 1.358%
Annual 17.57%
For balance transfers
Monthly Balance transfer not available
Annual Balance transfer not available
For money transfers
Monthly Money transfer not available
Annual Money transfer not available

Benefits and Features

Interest free days (purchase) Up to 45 days
Rewards earned on
Purchases
Balance transfers
Money transfers
Cash transfers
Money transfer available
Contactless payment
Available
Minimum payment £0.01
Maximum payment £45.00

Charges

Card fee £32.00 per annum
Balance transfer fee Balance transfer not available
Cash withdrawal fee 2.50% - Min £2.50
Money transfer fee Money transfer not available
Using a card abroad:
European Union 2.95%
Worldwide 2.95%
Note

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Disclaimer

The list of business credit card providers on this page is a selection of services available and gives you an idea of the kind of options available. You can find out more about the individual products by visiting any of the providers listed. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts.co.uk will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts.co.uk recommends you obtain independent financial advice.

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Business credit cards explained

At a glance

  • Business credit cards can help self-employed and small business owners manage cash flow and make business-related purchases.
  • Most business credit cards charge an annual fee, with an extra charge per additional cardholder.
  • Read the small print for any eligibility restrictions before making an application.

 

How to use a business credit card?

A business credit card is a convenient way to purchase items for your business and to pay for business expenses. It also helps with managing your cashflow. This is because a business credit card comes with an interest free period of usually around 56 days   . This means you can pay for business expenses without incurring any interest costs during this period. Your business may have times where invoices are overdue and as a result you lack the cashflow needed to fund your business expenses. A business credit card acts as a bridge for these periods of time. Ideally you will be able to clear your business credit card balance before the interest free period expires. If you find you are regularly incurring credit card interest costs and/or are struggling to get your clients to pay invoices on time, then invoice finance may be a more viable alternative. 

 

Our preferred invoice finance broker can help you to compare the options. Businesses that need credit for larger purchases can compare business loans.

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?

A business credit card offers several benefits:
  • 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
Remember though, business credit cards often come with annual fees and interest rates can be high, so make sure to factor that into your cashflow planning.

Connect your business credit card to accounting software

You can connect you business credit card to 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. If you’re still in the early stages, find out more about how to start a small business in the UK. 

 

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Do business credit cards build credit?

Yes. Much like with a personal credit card, by effectively managing your business credit card you’ll be able to build the credit score of your business, which could help you secure additional finance to help your company grow in the future. This relies on keeping within the terms of your credit agreement and never missing a repayment; if you were to fall behind, the opposite would be true, and it could serve to downgrade your credit rating accordingly. 

 

Does a business credit card affect personal credit score?

If the lender is running a credit check on your personal file – perhaps if you’re a new business – then it will result in a slight dip to your credit score, as is the case with all hard inquiries. However, this hit should be temporary, and provided you manage your credit agreements effectively will be quickly recovered from. Typically speaking, the only other time a business credit card could affect your personal credit score is if you give a personal guarantee and the business defaults on the debt, leaving you liable, which will understandably have an impact on your credit history. 

 

Can I get a business credit card with bad credit?

You can, though it will be more difficult to source suitable options. It’s likely that you’ll only be eligible for cards that come with a higher interest rate and/or lower credit limit, while additional features may be limited and you’re more likely to be asked for a personal guarantee. You should ideally seek providers that offer an eligibility checking tool prior to making a full application – this will give you an indication of whether or not you’ll be accepted without running a full hard search on your credit profile, and so won’t show up on your report or impact your score. 
Don’t make the mistake of applying for a lot of cards, either; not only will each hard enquiry dent your score, but if you’re refused it’ll have an even greater impact that can be harder to recover from, so only apply for a single card you’re confident you’ll be approved for. 

 

Business credit cards FAQs

Are business credit cards personally guaranteed?

They can be, though this depends on the agreement you have with your lender. Some will ask you to provide a personal guarantee which will see you liable if the business can’t pay its debts, but this is more likely if you’re a new or small company and will rarely be required if you’re a larger established firm with a solid business credit rating. 

Can you write off business credit card interest?

Business credit card interest can be claimed as a business expense and therefore deducted from your pre-tax profits to reduce your tax bill. 
How long should a business keep credit card receipts?
HMRC states that businesses must keep records of all financial transactions – including receipts – for six years from the end of the last company financial year they relate to. 

 

Are credit card fees tax deductible for businesses? 

Yes, any fees and charges incurred while using your business credit card are tax deductible, though there may be complications involved if the transaction could be deemed for personal benefit. This is why it’s often best to keep your personal and business transactions separate and why having a dedicated business credit card is often preferred, but it also highlights the importance of seeking suitable financial and tax advice. Head to Unbiased.co.uk or speak to your preferred independent financial advisers for a free one hour tax review (min £100,000 investments required).

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