Business credit card
A credit card in the business's name, with a spending limit and often a short interest-free period. Handy for everyday costs and small purchases, but expensive if you carry a balance.
- Personal guarantee likely
How it works
A business credit card works like a personal one, but it is for business spending. It has a credit limit, a monthly statement and a minimum repayment. If you clear the balance in full each month, you usually pay no interest on purchases.
- Limits: set from your business's finances and credit record. Business limits are often higher than personal ones.
- Extra cards: you can usually give cards to staff, with all spending on one bill and itemised statements.
- Features: some cards offer 0% interest on purchases for a period, cashback or rewards, or lower fees abroad.
- Applying: you must be at least 18 and live in the UK, and the business must be registered in the UK. Some providers ask you to hold a current account with them first. They will check affordability, your business's assets and its credit history.
Regulation: consumer credit rules can protect sole traders and partnerships of two or three people who are not all companies. They do not apply where the credit is over £25,000 and taken wholly or mainly for business.
Upsides and downsides
Upsides
- Quick to get, and useful for everyday and unexpected costs
- Interest-free if you pay the balance in full each month
- Keeps business spending separate from personal spending
- Staff cards and itemised statements make expenses easier to manage
Downsides
- High interest on balances you carry over
- Limits are usually small compared with loans
- Owners may be asked to guarantee the debt
Risks
- A carried balance can grow quickly at card interest rates
- Missed payments harm your business credit record
- Staff spending getting out of control
What it costs
- How it is priced
- Interest on balances not paid in full, plus any annual, cash and foreign transaction fees
- Costs that are easy to miss
- Interest on any balance you carry, usually at a high rate
- Annual card fees on some cards
- Fees for cash withdrawals and late payments
- Foreign transaction fees on some cards
A credit limit set by the provider, based on your business's finances and credit record.
Does it fit?
Could fit when
- You need a small amount for everyday costs and can repay within a month or two
- You need to buy small items of equipment quickly
Unlikely to fit when
- You need a large amount, or longer than a few months to repay
- You would carry a balance for months at card interest rates
Who can use it
- Business types: Sole trader, Partnership, Private limited company, LLP, Public limited company, Community interest company, Co-operative or community benefit society, Charity
- You must be 18 or over and live in the UK, and the business must be registered in the UK
- Many providers have a minimum income or turnover
- Some require a current account with them
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all bank and mainstream debt
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- Business income and accounts
- A clean credit record
- A spending policy for staff cards
Regulation and protections
Credit for sole traders and partnerships of two or three people (not all companies) can be regulated consumer credit, unless it is over £25,000 and wholly or mainly for business. Many small businesses can also complain to the Financial Ombudsman Service.
Types of provider: High-street and challenger banks; Card issuers and payment companies.
Also consider
Sources
- British Business Bank: What is a business credit card? · checked 7 October 2026
- legislation.gov.uk: Regulated Activities Order 2001, article 60C (exempt credit agreements) · checked 7 October 2026
- legislation.gov.uk: Regulated Activities Order 2001, article 60L (relevant recipient of credit) · checked 7 October 2026
- Financial Ombudsman Service (small business): Who we can help · checked 7 October 2026