Can I get a credit card for my business?

Understanding company credit card finance

A business credit card offers a flexible line of credit up to a pre-set limit and is a short-term form of commercial funding. Its flexibility is a key benefit as you can repay the outstanding balance in full with no interest added or spread payments over multiple months and pay interest.

Business credit cards are typically available for sole traders, partnerships, and limited companies and are particularly useful to cover unexpected outgoings. So what are the general eligibility criteria to get a credit card for your business?

Are you eligible for a business credit card?

Eligibility requirements typically include:

• Being over 18 years of age
• Owning a UK-registered business and being a resident of the UK
• Running a business bank account with the same provider
• Operating with a minimum turnover - this varies with providers
• Trading for a minimum length of time

If you’re a start-up business, you may still be eligible for a credit card but as there’s no or little trading history for the provider to estimate the risk of default you present, your credit limit is likely to be lower and the interest rate potentially higher.

How do business credit cards work?

You can spend up to the pre-agreed credit limit and every month you receive a statement showing the minimum repayment and due date. Business credit cards work in the same way as personal credit cards - you need to make the minimum repayment, pay the bill in full, or pay a different amount.

You can use your credit card facility to pay for items such as stock or to pay general bills and other business expenses to improve your company’s cash flow. If you don’t pay the amount in full, however, you’ll be charged interest at the rate set by your provider.

What are the advantages of getting a credit card for your business?

Flexibility

Once the facility is set up, you can use up to the credit limit as frequently as you like providing you meet the repayment terms. The flexibility offered by a business credit card is very useful, especially when you receive unexpected bills. You may also be able to get additional cards for key members of staff and set individual credit limits on them.

Improved credit score

Regularly using and repaying a business credit card over several months improves your company’s credit rating as it demonstrates that you can control your cash flow and are a reliable payer.

Tracked expenses

You can track your business expenses via the credit card account if you use the card for general office outgoings. This reduces the time spent on administration.  

How to apply for a business credit card

UK Business Finance is an established commercial finance brokerage, and we can help you get a credit card for your business. We’ll track down the best deals and support you during the application process. Please contact one of the team for more information on your options.