10 Best Business Credit Cards in the UK

10 Best Business Credit Cards in the UK

10 Best Business Credit Cards in the UK

How Do Business Credit Cards Work?

Business credit cards are similar to regular credit cards in that there are application requirements, and the cards come with a credit limit.

There are differences between the two, however.

Business credit cards are purely for business expenditures only. To apply for one, you need to possess a registered UK company.

Both card types offer rewards and benefits; however, business credit card rewards will be more focused.

For example:

  • Higher credit limits
  • Cashback options
  • Travel insurance
  • Purchase protection for higher amounts
  • Leisure discounts such as golfing and dining
  • Reward points

Remember, business credit cards do not dissolve you of any financial liability.

For the self-employed/sole traders, the liability will always remain with you.

Those who set up limited companies can retain their personal wealth separate from business finances. However, you still need to manage your money well.

Why Should I Get a Business Credit Card?

There are many reasons why you should consider getting a business credit card:

  • They can improve business credit ratings – Showing that your business can handle its finances tells money lenders they can trust you with large amounts of money.

  • Better cash flow control – Most banks offer supplementary cards that come with spending limits to enable you to keep track of employee spending.

  • Separation of personal and professional finances – Separating personal and professional finances will tell you what you spend on payroll and stock and what you spend on yourself.

  • Reward and perks – Banks offer various rewards, such as cashback on business spends, to redeemable reward points for flights or hotels.

  • Interest-free periods – Business credit cards often come with a 56-day interest-free period for those who pay off the outstanding amount each month. Some banks offer three months interest-free or six-month 0% on balance transfers as a welcome gift.

  • Multiple cards – If you run a company where each employee has access to company funds, having access to multiple cards alleviates the stress and allows you to see who spends what and where. Having access to multiple cards alleviates the stress and allows you to see who spends what and where.

  • Travel – If you travel regularly for business, a business credit card can protect your spending and ensure you can claim any expenses you are eligible for before having to pay your bill.

Who Is Eligible for a Business Card?

Each bank or credit card company has its own eligibility requirements. However, as a standard, you need to:

  • Be over the age of 18
  • Have a UK registered company
  • Be a registered sole trader

For some banks, your turnover may decide your credit limit and APR.

Tips for Choosing the Right Business Credit Card

When it comes to picking the right business credit card, two factors will influence your decision:

  1. Is your desired outcome to borrow money and spread the repayments out over time?
  2. Do you have the means to pay back the monthly outstanding amount?

If you are option one, then you need a credit card with a low APR and 0% interest periods.

For option two, you want to look for a credit card that offers rewards and benefits that suit your business needs, as well as a low annual fee.

You do not have to choose one over the other. Some credit cards have low APR and considerable benefits.

However, determining the goal of getting a credit card should be your first consideration.

10 Best Business Credit Cards in the UK

1. Santander Business Cashback

  • £30 annual fee
  • 23.7% APR (variable)
  • No foreign transaction fees
  • Rewards and benefits

Advantages:

  • This cashback card is intended for SMEs but is available to sole traders, limited liability and private or public limited companies, partnerships or companies with two or fewer directors.
  • The card offers 1% cashback on all business purchases and has 56 days interest-free if you pay your bill in full and on time.
  • You have access to unlimited supplementary cards that all come with spending limits.

Disadvantages:

  • Lack of introductory offers or incentives.
  • An annual fee and a 3% cash withdrawal fee while you can use your card abroad.

Visit Santander Business Cashback

2. Metro Bank Business Credit Card

  • No annual or monthly fee
  • 14.9% APR (variable)
  • EU withdrawals and spends are free
  • Rest of the world: £1.50 non-sterling fee and 2.99% withdrawal fee
  • No rewards or benefits

Advantages:

  • The appeal of this card is the low APR and access to funds.
  • It also comes with 25 supplementary cards.

Disadvantages:

  • You need to have an active Metro Bank current account or a business current account to apply for the Metro Bank Business Credit Card.
  • There are no rewards and benefits or any introductory offers or incentives.
  • It is not ideal for those companies that require their staff to travel internationally.

Visit Metro Bank Business Credit Card

3. American Express Platinum Business Card

  • £595 annual fee
  • No APR – this is a charge card
  • 2.99% non-sterling fee
  • Extensive rewards and benefits

Advantages:

  • Perfect for those companies that have to travel.
  • Dedicated concierge and travel team.
  • Various travel insurances.
  • Access to over 1,200 airport lounges.
  • Upgrades at partnered hotels and airlines.
  • Purchase protection and one point for every £1 you spend.
  • When you open the account, you receive an additional 100,000 bonus reward points if you spend £10,000 in the first three months.

Disadvantages:

  • The card does not give you access to funds.
  • Only one of the 99 supplementary cards is Platinum (the rest are Gold; therefore, only two employees receive Platinum benefits).
  • The outstanding bill has to be paid in full as it is a charge card (but you do have a 54 day grace period).
  • It has a non-sterling fee and those that travel outside of the UK could find themselves paying sizeable fees.

Visit American Express Platinum Business Card

10 Best Business Credit Cards in the UK
10 Best Business Credit Cards in the UK

4. Capital On Tap Business Credit Card

  • No annual fee
  • 39.4% APR (variable)
  • No foreign transaction fees
  • No rewards and benefits

Advantages:

  • Aimed at sole traders and SMEs that struggle to get access to cash.
  • Comes with a high limit and an APR to match that can be transferred to your high street bank account free of charge.
  • There are no additional fees associated with the card; if you make all your payments on time, the APR may drop from 0.79 – 2.84% each month.
  • Access to 10 supplementary cards that have spending limits.

Disadvantages:

  • There are no rewards and benefits or any introductory periods.

Visit Capital On Tap Business Credit Card

5. Capital On Tap Business Rewards Credit Card

  • £99 annual fee
  • 22.9% APR(variable)
  • No foreign transaction fees
  • Rewards and benefits

Advantages:

  • This is another card designed for short-term funding for sole traders and SMEs.
  • The account comes with 20 supplementary cards.
  • Unlike the standard Capital on Tap Business Credit Card, this card comes with 1% cashback or one Avios point per £1 you spend.
  • If you spend £5,000 in the first three months, you will receive 10,000 additional bonus points.

Disadvantages:

  • There are no introductory periods.
  • The annual fee is notably high for the limited rewards and benefits.
  • To apply for this credit card, you need to have a UK registered company with at least three months of trading history and an annual turnover of £24,000.

Visit Capital On Tap Business Rewards Credit Card

6. Clydesdale Bank Business Card

  • £28 annual fee
  • 22.4% APR(variable)
  • 2.95% non-sterling fee
  • 3% foreign cash withdrawal fee – including EU
  • No rewards and benefits

Advantages:

  • With this card, you are essentially paying to use Clydesdale’s SmartData Online Account system which allows you to effortlessly track all business spending.
  • Comes with advanced anti-fraud technology.

Disadvantages:

  • The card does not offer any additional rewards or benefits; however, as an introductory offer, your first-year annual fee is waived.

Visit Clydesdale Bank Business Card

7. HSBC Commercial Card

  • £32 annual fee
  • 22.0% APR(variable)
  • 2.99% non-sterling fee and overseas cash withdrawal fee
  • No rewards and benefits

Advantages:

  • As an introductory offer, the HSBC Commercial Card offers 1% cashback on business purchases up to the value of £10.
  • They also waive the annual fee for the first year.
  • The card comes with complete fraud protection and flexible payment options; however, you need to have an active HSBC Business Current Account to apply.

Disadvantages:

  • There are no benefits considering the cost of the annual fee.

Visit HSBC Commercial Card

8. NatWest Business Plus

  • £70 annual fee
  • 29% APR(variable)
  • No foreign transaction fees
  • Rewards and benefits

Advantages:

  • This card comes with a 5* Money facts rating making it a reliable choice.
  • The reward program includes 2% cashback on eligible trade and business supply spends.
  • 1% cashback on eligible accommodation and fuel transactions.
  • 0.5% cashback on all other business spends.

Disadvantages:

  • The annual fee is quite steep, considering the simple reward program available.
  • For this card to be a benefit, you would need to cover the cost of the annual fee with the cashback you earn.

Visit NatWest Business Plus

9. Amazon Business Prime American Express Card

  • £50 annual fee
  • 32.6% APR(variable)
  • 2.99% non-sterling transaction fee
  • Rewards and benefits

Advantages:

  • The card comes with all the business benefits of being a Business Prime subscribers, such as storage, shipping and consumer data.
  • It also comes with American Express benefits like their service team and American Express Experiences.
  • As a card user, you will receive a £50 Amazon gift card when you open the account.
  • To have access to this card, you need to be an Amazon Business Prime subscriber.
  • You can also choose from one of the two rewards: 90-day payment deferral, and 2% Amazon rewards.

Disadvantages:

  • You cannot choose both rewards.
  • The 2% reward is capped at £120,000; however, those points can only be earned at Amazon.com, Amazon Business and Wholefoods.
  • If you exceed the £120,000 cap, the reward rate then becomes 1%.
  • There is an uncapped reward rate of 0.5% on all other spends.
  • Additionally, you can request up to 99 supplementary cards.
  • The annual fee is waived once you reach $8,000 annual spend.

Visit Amazon Business Prime American Express Card

10. Soldo Prepaid Business Credit Card

  • Fees start at £5 per month, per card

  • No APR – this is a prepaid card

Advantages:

  • This card requires no credit checks as it does not grant access to money – it is a tool to help you manage your company’s finances.
  • The Soldo Pro plan (£5 per month, per card) comes with spending controls, accounting software integration and free deposits and withdrawals from domestic accounts.
  • The Soldo Premium plan (£9 per month, per card) is available in GBP, Euro and USD, as well as customisable cards and advanced reporting.
  • The Soldo Custom plan comes with a dedicated Customer Success Manager who will assess your needs and create an account accordingly.

Disadvantages:

  • The cards are only available in GBP.

Visit Soldo Prepaid Business Credit Card

Final Thoughts

With so many credit cards available, choosing the right one can be challenging.

Before submitting any applications, consider:

  • What do you want to achieve with the credit card? – A temporary influx of cash, build a credit score or better finance management?

  • What are your business needs? – Travel benefits, some financial freedom time to get on top of finances?

  • Which cards suit your needs and goals the best?


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