Business credit cards, made clearer.

What is a business credit card?

A business credit card is a form of revolving borrowing for business purchases. The provider sets a credit limit, and the business can spend up to that limit, repay, and spend again. Keeping business spending on a dedicated card can help separate it from personal finances and make bookkeeping simpler.

Card spending is borrowed money, not income. It can smooth short gaps between paying suppliers and being paid, but it will not fix a business that is making sustained losses. The British Business Bank’s explainer on business credit cards gives a wider overview.

How does a business credit card work?

Purchases build up over a statement period. When the statement arrives, the business must pay at least the minimum amount by the due date; paying the full balance is usually the cheapest approach. Whatever is repaid becomes available to spend again.

Some cards offer an interest-free period on purchases, but only if the card includes one and its conditions are met, which usually means clearing the full statement balance on time. A balance carried forward may attract interest unless a promotional rate applies, and paying only the minimum makes debt slower and more expensive to clear. Annual, late-payment, foreign-transaction and cash-withdrawal fees may apply, and cash withdrawals often start charging interest immediately.

What can I use my business credit card for?

Typical uses include stock and materials, equipment and office supplies, software and subscriptions, business travel, and spending by employees you have authorised. What you can pay depends on whether the supplier accepts cards and on the provider’s own restrictions. Not every invoice, payroll run or tax bill can be paid by card, and some may carry a surcharge.

Keep receipts and records for every transaction. A cost is not automatically tax-deductible because it went on a business card; the usual rules on business expenses still apply. Keep personal spending off the card.

Is my company eligible for a business credit card in the UK?

Each provider sets its own criteria. Common factors include being a UK-based business, the business type, an authorised adult applicant who meets any residency requirements, turnover, trading history, industry, affordability and credit checks. Some providers accept sole traders, partnerships, limited companies and LLPs; others accept only certain structures. No single provider’s threshold applies to everyone.

Before applying, gather your company number if you have one, turnover figures or recent bank statements, directors’ identity details and a summary of existing borrowing. Ask whether an eligibility check uses a soft search or a full credit search; a soft check does not guarantee approval. If a personal guarantee is required, your own assets could be at risk, so seek independent advice before signing. The British Business Bank’s finance finder summarises who these cards may suit.

Pros and cons of business credit cards

Rewards rarely outweigh the cost of interest, so they are not a reason to carry debt. A card is unsuitable for funding a long-term deficit.

Can I get a company credit card for my start-up business?

Some providers accept start-ups; others require a minimum trading period or revenue. With little trading history, a provider may look at forecasts, bank statements and directors’ credit history, and may offer a lower limit or decline the application. Check criteria and the type of credit search before applying, as several applications in a short time can affect your credit file.

Approval is never guaranteed. A business debit card or prepaid card can help control spending while the business builds a track record.

What credit limit can I get on my business credit card?

There is no universal limit. Providers weigh turnover, affordability, existing debt, business credit history and sometimes directors’ personal history. An advertised maximum is not an entitlement, and providers can review limits and raise or reduce them later.

Employee cards generally share the overall account limit rather than adding extra borrowing. Aim for a limit the business can comfortably repay, not the largest one available.