Credit Card For Business Owners – Top 10 In 2024 [VERIFIED]
As a business owner in the UK, managing finances efficiently is crucial for the success of your enterprise. One of the tools that can greatly assist in this is a business credit card. Not only does it help in streamlining your expenses, but it also offers rewards, perks, and the ability to build a solid business credit score. There are plenty of credit card for business owners is available.
In this guide, I’ll walk you through everything you need to know about business credit cards and present a curated list of the top 10 credit cards for business owners in the UK.
What is a Business Credit Card?
A business credit card is specifically designed for business-related expenses. It functions much like a personal credit card, but with features and benefits tailored to the needs of businesses.
Whether you’re a sole trader or running a limited company, a you need to get a business credit card which allows you to separate your personal and business expenses, which is vital for both accounting purposes and managing cash flow.
Using a business credit card responsibly helps in building your business credit score. This score is crucial when seeking business financing, as lenders will assess your business’s creditworthiness before approving loans or credit lines.
How Does a Business Credit Card Differ from a Normal Credit Card?
While both business and personal credit cards allow you to make purchases and pay them off over time, there are several key differences between the two:
1. Credit Limits and Business Financing
Business credit cards generally offer higher credit limits compared to personal credit cards. This is because they are designed to cater to the higher spending needs of businesses, such as purchasing inventory, office supplies, or covering travel expenses.
2. Business Rewards and Perks
Business credit cards often come with rewards programs that are specifically beneficial for business-related spending. These might include cashback on office supplies, discounts on business travel, or points that can be redeemed for services that your business uses regularly.
3. Impact on Credit Score
A business credit card impacts your business credit score, which is separate from your personal credit score. Maintaining a good business credit score can make it easier to obtain loans, better interest rates, and more favorable terms from suppliers. But still there are specifically many business credit cards available for bad credit score.
Different Types of Business Credit Cards
There are various types of business credit cards available in the UK, each catering to different business needs. Understanding these types can help you choose the right one for your business.
1. Business Rewards Cards
These cards offer rewards points, cashback, or other perks for your business spending. They are ideal for businesses that spend heavily on certain categories like travel, office supplies, or marketing.
2. Corporate Credit Cards
Designed for larger businesses, corporate credit cards offer higher credit limits and more robust expense management tools. They often come with detailed reporting features that help in managing and auditing expenses across multiple employees.
3. Small Business Credit Cards
These cards are tailored for small businesses and sole traders. They provide a balance between useful rewards and manageable credit limits, making them a good choice for businesses that are just starting out.
4. Cashback Business Cards
Cashback business cards offer a percentage of your spending back as a rebate. This can be a straightforward way to reduce business expenses, especially if you consistently spend in categories that offer higher cashback rates.
Things to Look for Before Getting a Business Credit Card
Choosing the right business credit card requires careful consideration of several factors:
1. Interest Rates
Interest rates on business credit cards can vary widely. It’s important to compare the rates across different cards, especially if you plan to carry a balance from month to month. Look for cards with low or 0% introductory interest rates if you’re planning a big purchase.
2. Fees
Annual fees, foreign transaction fees, and late payment fees can add up quickly. Ensure you understand the fee structure of any card you’re considering and weigh these against the rewards or perks offered.
3. Rewards and Perks
Consider what kind of rewards are most beneficial for your business. If you travel frequently, a card that offers travel rewards or cashback on airfare might be ideal. If you spend heavily on office supplies, look for cards that offer points or discounts in that category.
4. Expense Management Tools
Some business credit cards come with integrated expense management tools. These can be very helpful for tracking spending, categorizing expenses, and even setting limits for employee cards.
5. Application Process
The business credit card application process can vary in complexity. Ensure that you have all the necessary documentation ready, such as your business’s financial statements, tax returns, and business registration details. There are also few easy to get credit cards are available with less formalities.
How to Choose the Perfect Business Credit Card?
Choosing the perfect business credit card involves assessing your business’s specific needs and comparing the available options. Here’s a step-by-step guide:
1. Assess Your Business’s Spending Habits
Identify where your business spends the most money. This could be travel, office supplies, or digital services. Choose a card that offers the most rewards or cashback in these categories.
2. Use Business Credit Card Comparison Tools
There are several online tools that allow you to compare business credit cards based on interest rates, rewards, fees, and other factors. Use these tools to narrow down your options.
3. Consider Interest Rates and Fees
If you expect to carry a balance, opt for a card with a low-interest rate. If you plan to pay off your balance each month, then focus on the rewards and perks instead.
4. Evaluate Business Rewards and Perks
Choose a card that offers rewards that align with your business’s spending. If the rewards are flexible, such as points that can be used for various types of purchases, that might offer more value over time.
5. Ensure Ease of Managing Business Expenses
Look for cards that offer robust online account management, detailed expense reports, and the ability to issue cards to employees with spending limits.
Top 10 Credit Cards for Business Owners in the UK
1. American Express® Business Gold Card
The American Express® Business Gold Card is designed for business owners who want to maximize rewards on their spending. This card offers Membership Rewards points on all purchases, with double points on the first £20,000 spent in one year.
There’s a 0% introductory interest rate on purchases for the first 9 months, making it a great option if you’re planning a large purchase soon. Additionally, the card has no annual fee for the first year, after which a £175 fee applies.
With flexible repayment options and robust expense management tools, this card is ideal for businesses looking to earn rewards on everyday expenses.
2. Barclaycard Business Cashback Credit Card
The Barclaycard Business Cashback Credit Card offers 1% cashback on all purchases, which can significantly reduce your business’s operating costs.
This card also features a 0% fee on foreign transactions, making it an excellent choice for businesses that operate internationally.
With no annual fee and competitive interest rates, this card is suitable for businesses that want to save on both everyday purchases and international expenses. It also comes with access to useful tools for managing business expenses and generating detailed spending reports.
3. Capital on Tap Business Credit Card
The Capital on Tap Business Credit Card is perfect for small businesses that want straightforward credit terms and minimal fees. This card offers up to 56 days of interest-free credit on purchases, allowing you to manage your cash flow more effectively.
With no annual fee and a variable interest rate ranging from 9.9% to 34.9% APR depending on your business’s creditworthiness, it’s an accessible option for businesses of all sizes. The card also provides easy-to-use online tools for tracking expenses and integrating with popular accounting software.
4. Santander Business Credit Card
The Santander Business Credit Card is a versatile option that comes with a range of benefits tailored to small and medium-sized enterprises. It offers discounts on business services and tools, making it easier to save on the essential services your business needs.
The card has no annual fee for the first year, with a £30 fee thereafter, and an interest rate of 18.9% APR (variable). It’s a good choice for businesses looking to keep costs low while accessing a robust rewards program.
5. Lloyds Bank Business Credit Card
The Lloyds Bank Business Credit Card offers competitive interest rates and comprehensive expense management tools, making it ideal for businesses that need detailed reporting and easy expense tracking.
The card features an interest rate of 15.9% APR (variable) and an annual fee of £32. It also provides access to Lloyds Bank’s range of business services, which can be particularly useful for growing businesses. With its combination of low fees and high functionality, this card is a solid choice for businesses that value both savings and efficiency.
6. HSBC Business Credit Card
The HSBC Business Credit Card provides access to a range of exclusive rewards and perks, including travel discounts and deals on business services. With a 0% annual fee for the first year and a variable interest rate of 21.9% APR, this card is attractive for businesses that want to earn rewards while keeping costs manageable.
HSBC’s global presence also means you’ll benefit from worldwide acceptance and customer support, making it a great option for businesses that operate internationally.
7. Tide Expense Card
The Tide Expense Card is specifically designed for easy expense management. It integrates seamlessly with Tide’s business banking app, allowing you to track expenses in real-time, categorize spending, and sync with accounting software.
This card doesn’t charge an annual fee and is a great tool for small businesses or startups that need a simple and effective way to manage business expenses without the complexity of traditional credit cards.
8. Metro Bank Business Credit Card
The Metro Bank Business Credit Card offers no fees on UK purchases and a competitive interest-free period on purchases, which can be beneficial for managing cash flow.
With an interest rate of 14.9% APR (variable) and no annual fee, this card is a budget-friendly option for businesses that prioritize saving on everyday transactions. Metro Bank’s customer service is also highly rated, offering 24/7 support for business owners.
9. NatWest Business Credit Card
The NatWest Business Credit Card offers a 0% introductory interest rate on purchases, making it an excellent choice for businesses planning to make significant purchases in the short term. After the introductory period, the interest rate is 22.4% APR (variable).
The card also offers detailed monthly statements and expense management tools, with an annual fee of £30. It’s ideal for businesses that need to track spending closely and manage multiple cardholders under one account.
10. Virgin Atlantic Reward+ Business Credit Card
The Virgin Atlantic Reward+ Business Credit Card is tailored for businesses that frequently travel. It offers high rewards on travel-related spending, including bonus points on Virgin Atlantic flights and companion tickets.
The card has a higher annual fee of £160 but offers a variable interest rate of 26.9% APR. If your business spends heavily on travel, this card’s rewards can outweigh the cost, making it a valuable addition to your financial toolkit.
Based on the criteria discussed, here’s a list of the top 10 business credit cards in the UK:
| Credit Card | Key Features | Interest Rates | Annual Fee |
|---|---|---|---|
| American Express® Business Gold Card | Rewards on business spending, 0% introductory interest rate for first 9 months | 22.9% APR (variable) | £0 for the first year |
| Barclaycard Business Cashback Credit Card | 1% cashback on purchases, 0% fee on foreign transactions | 23.9% APR (variable) | £0 |
| Capital on Tap Business Credit Card | Up to 56 days interest-free, no annual fee | 9.9% to 34.9% APR | £0 |
| Santander Business Credit Card | Discounts on business services, no annual fee for the first year | 18.9% APR (variable) | £30 after first year |
| Lloyds Bank Business Credit Card | Competitive interest rates, detailed expense management tools | 15.9% APR (variable) | £32 |
| HSBC Business Credit Card | Access to exclusive rewards, worldwide acceptance | 21.9% APR (variable) | £0 for the first year |
| Tide Expense Card | Easy expense tracking, integrates with accounting software | n/a | £0 |
| Metro Bank Business Credit Card | No fees on UK purchases, interest-free period on purchases | 14.9% APR (variable) | £0 |
| NatWest Business Credit Card | 0% introductory interest on purchases, detailed monthly statements | 22.4% APR (variable) | £30 |
| Virgin Atlantic Reward+ Business Credit Card | High travel rewards, companion tickets, free seat selection | 26.9% APR (variable) | £160 |
Choosing the right business credit card can have a significant impact on how effectively you manage your business expenses and optimize your financial health. By considering factors like interest rates, rewards, and the specific needs of your business, you can find a card that not only meets your needs but also enhances your business’s financial flexibility. With the options provided in this guide, I hope you feel confident in selecting the perfect business credit card for your business in the UK.
