Credit cards for business use feature a host of benefits including travel insurance, cashback, free additional cardholders, 0% on purchases and itemised billing.
Business credit card guide
What is a business credit card?
A business credit card is simply a credit card that is issued to a limited company or sole trader, as opposed to an individual consumer. It can be used as a way of facilitating staff spending, helping cash flow or even to temporarily finance operations.
How do business credit cards work?
Business credit cards work much like conventional credit cards in that borrowers will be given a credit limit and the balance can be paid off over time, subject to a minimum amount being paid each month.
You can also choose how many credit cards you want on your account depending how many staff you have – or how many staff members you want to issue a card to.
Just like a personal credit card, a better business credit score will usually net you a better interest rate or other benefits such as interest-free periods, reward points or cashback.
But it’s worth noting that business credit card providers may also check your personal credit score which can also affect the outcome of any applications.
What types of business credit card are available?
As with personal credit cards, there are numerous types of business credit card available, each with different perks and interest rates.
For example, there are cards available with interest-free periods on purchases, which are a great way to manage cash flow if money is tight; while cards that offer rewards points or cashback are ideal you use it regularly.
Remember though, for a cashback deal to be worthwhile, you must ensure that you pay the balance off in full at the end of each month. Don’t fall foul of the interest charges which can typically vary from between a representative annual percentage rate (APR) of 16% (variable) and 26% (variable).
Other common incentives include; free travel cover, free purchase protection and the facility to add additional card holders free of charge.
What are the advantages of business credit cards?
Business credit cards offer a convenient way to pay for goods or services and can be used when placing orders over the phone or online. There is also the added convenience of allowing staff to buy work related items without having to submit an expenses form.
In addition, you can use the card to monitor expenditure and specify a different credit limit for each employee that carries a card. And giving members of staff a company credit card will be seen by them as a mark of trust – which is great as long as they don’t abuse it!
If used correctly, business credit cards are also a great way to build your businesses credit profile and, provided you pay off the balance at the end of each month, you will have access to interest free spending every month.
Why use MoneySupermarket to compare business credit cards?
As with any financial product, when looking for a business credit card it’s important to compare the different products out there to make sure that you get the right one to suit your needs.
For instance, if you regularly spend on your card and clear the balance at the end of each month, then a rewards or cashback card would be more beneficial to you than a card with an interest-free period on purchases.
Or if you are using the card to make a large purchase that you will not have paid off by time any interest-free periods end then you may be better going for a card with a lower standard rate.
And MoneySupermarket’s business card comparison tool will instantly compare a range of business credit cards so you can make an informed decision on which card is right for you and your business.
In addition, if you use the Smart Search tool, this will look for which products are best suited to you and rate your chance of acceptance so you don’t have to risk getting rejected for credit – and it won’t leave a ‘footprint’ on your credit file.
Your personalised chance of approval
We've taken the details you gave, and used them to show you personalised scores to tell you the chance that your application for each card would be successful.
Why is this important?
Every time you apply for a credit card, a mark is left on your credit score. That means it's better get it right first time. Your scores help you understand which cards you have the strongest chance of getting.
The higher the score, the stronger chance you have of getting the card. If you see a very low score, you're probably better off choosing a different card.
- Consider a different card
- Not eligible
- Your chances are good
- You've been pre approved
If you see a high score, you can be fairly confident. The scores aren't a guarantee, as acceptance of your application is at the sole discretion of the card issuer, but they should help guide your choice.
If you see a pre-approved score it may be subject to you passing additional ID and fraud checks by the provider.
In some cases, we will not be able to display a score for a product because we do not have enough information about the card issuer’s acceptance criteria or we have not been able to match your details at the credit bureau.
We work closely with our partners to improve our eligibility scores for all products that are of interest to you.
We're free and independent, as well as offering exclusive deals you can't get anywhere else.
Moneysupermarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.