Best business credit cards in 2022

Best business credit cards in 2022


min read

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In this article, we compare the UK's main business credit card providers by looking at their top cards, their representative rates, and the rewards they're currently offering. Plus, we look into the alternative business funding options that are worth bearing in mind when you want to grow your business.

What is a business credit card and how is it useful?

Business credit cards are one of several different payment methods for businesses, and they allow companies to make purchases as a corporate entity. Business owners and nominated employees can use business credit cards to buy items or services for a company on credit. They then have to pay this money back – often within 56 days – or else they’ll be charged interest on the amount due.

B2B companies will typically use business credit cards to cover smaller ticket items such as employee expenses, office supplies, and travel costs. If you’re looking for finance to cover business growth, then you may be suited to alternatives such as a Flexi-Loan or a Revenue-Based Loan.

Companies of all shapes and sizes can use a business credit card. Whilst an employee’s name is printed on the card, it’s the business itself that is responsible for paying off the credited amount. The card acts pretty much how you would expect a personal credit card to work and there are no extra penalties due to it being a business credit card; you can even use it to get additional rewards and perks, such as air miles and cashback.

How do business credit cards work?

Business credit cards work by allowing a business to spend money up to a pre-agreed limit, which the business then has to repay back to the credit card company. There is usually a minimum repayment needed every month, plus an interest rate added to the amount due if the borrower has gone past the interest-free grace period.

The card provider will set the limit up to which you can borrow. They’ll base this on a variety of factors including your personal and business credit history. It's worth bearing in mind that start-ups and sole traders can sometimes find it difficult to get approved for business credit cards – or may be charged a higher interest rate – so be sure to shop around if you fall into one of those categories, or if you have a poor credit history. (You can read this article  to find out about start-up funding options, or check out how to improve your business credit score here.)


Benefits of a business credit card

Credit cards for businesses offer several benefits. These will vary depending on how often you use your card and what you’re using it for. They include:

  • building a credit profile – many new businesses have what’s called a thin credit file, where the credit reference agency (and by extension the lender) have little or no credit history on you. Credit cards allow businesses to build up a credit profile and increase their credit scores, making it easier to apply for finance in the future
  • separating personal and business spending – especially with younger businesses, it can be a confusing hassle for a business owner to separate their personal spend from that of the business. Having all your business transactions in one place allows for easier management
  • managing expenses – having a centralised account that all your employees use to make purchases allows for easier, more time and cost-efficient ways of managing expenses
  • controlling cash flow – sometimes your monies out don’t always tally neatly with what’s coming in; maybe a vendor is late in paying you, for example. For smaller amounts, a business credit card can be a useful way to bridge this cash flow gap until the payments start coming in again
  • getting rewards – as discussed below, business credit cards can come with all sorts of perks and rewards.

What perks do business credit cards offer?

Rewards schemesThese allow you to earn points for every pound spent on the card, which you can redeem for things like flights, hotels, and other goodies.

CashbackThis can be a great way to save money on your everyday expenses.

Balance transfer dealsIf you're looking to transfer an existing balance over from another credit card, many business cards offer excellent balance transfer deals. This can help you save money on interest payments and get your business finances in order.

0% APR periodsThis can be a great way to finance large business purchases without having to pay any interest.

InsuranceBusiness credit cards provide purchase protection insurance and often come with perks such as free travel insurance.

Do business credit cards require a personal guarantee?

Yes, business credit cards often require a personal guarantee. Credit cards offer an unsecured line of credit – similar to unsecured business loans – meaning that the money you borrow isn’t secured against an asset (like property, for example).

Instead, the card agreement requires the business owner to sign a personal guarantee. This means that they are personally and legally liable for repaying the money they borrow.


Article updated on:
June 30, 2022

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