We search the UK credit market to find the best deals for your business.
At Sensible, we've partnered with the biggest finance companies in the UK to offer you the best possible deals when it comes to business credit cards.
Business credit cards are specifically designed for business owners. They offer unique benefits suited to your business. Typically, business credit cards come with higher credit limits, cards for employees and rewards. What’s more, the main advantages of business credit cards for some include the separation of personal and business accounts, wider acceptance than debit payments, and the ability to set spending limits to manage expenses effectively.
Learn More
When a new business is started, it will have a fresh slate when it comes to credit. You will need to work on creating a good credit score so that you can have credibility and appear dependable when wanting to secure future financing. This is where a business credit card can really come in useful. With regular use and punctual payments, you can solidify a great credit rating. So, if you are applying for loans in future, particularly long-term loans, you can rest assured knowing your credit score can get you a great deal.
Business cards can accommodate the needs of your business. Personal credit cards often have much lower spending limits, mainly for domestic use. Whereas a credit card that is specifically designed for business use can have much higher spending limits to account for larger corporate expenses. In addition, this type of business financing may offer extended interest-free repayment terms, a grace period through which you can increase the freedom you have to invest in your business.
With a business credit card you can be less vulnerable to theft, in such a case that a credit card is stolen you can immediately freeze the account and avoid paying for any fraudulent expenses. Whilst an account is frozen, your company’s bank account is completely untouchable. Debit cards do not usually offer the same level of protection, and fraudulent payments may be from your debit account before you have the chance to review them.
With access to spending records, you can clearly evaluate which area is spending the most and what the money is used for. It is also important to keep employees accountable for their credit card spending. So, when employees are spending on the cards, you can also use your company’s credit cards to keep tabs on their spending habits.
Cash flow is a healthy and necessary part of any business, commonly leading to growth and profitability. Corporate credit can assist in driving your expansion, covering many types of expenses including the acquisition of inventory items, cyclic expenses which are going out on a regular basis or expenses that must go out in the case of business emergencies. Regardless of what your costs may be, you can have peace of mind knowing there will be credit available for cover.
As with personal credit cards, business cards also have many rewards and in many cases are superior to the benefits of personal cards. Business credit may offer better travel rewards, more miles, bigger cash-back percentages and more attractive signup bonuses. These perks are often tailored to your company’s needs, taking into account your requirements for excellent airfare rewards if your normal business activities such as travelling overseas to meet with clients and investors. Whereas, alternatives such as monthly cash-back bonuses based on total purchases may be offered to businesses whose activities don’t involve travel. Cash-back bonuses can be equally as helpful as they provide capital to invest back into the business.
Some business credit cards are designed specifically for those looking to build their credit score. However, due to high interest rates, it’s crucial to pay off your balance completely every month to reap the benefits. If used well, a business credit card intended for bad credit can help in increasing your company's credit score and subsequently, the likelihood of qualifying for more favourable offers later on.
A credit card for purchases can be a cost-effective method to disperse the expenses of items you buy. In the UK, purchasing cards are usually referred to as procurement cards. They can prove beneficial for a significant purchase that you're unable to pay for entirely upfront. With a Purchase Credit Card, a form of company charge card, you can acquire goods and services without a traditional purchasing process. Therefore, Purchase Credit Cards make an excellent credit alternative if you can afford to make significant repayments over a shorter time frame.
A 0% Purchase Credit Card permits you to make purchases without incurring any interest for a specific duration. This feature can come in handy when you need to buy an expensive item, allowing you to spread out the payment across an interest-free period. If you make these payments regularly and clear off your card balance by the end of the interest-free period, you won't have to pay any interest charges.
A balance transfer creates the opportunity for you to move balance between credit cards. This can assist you in keeping track of payments in one convenient location. Moreover, by finding an alternative card that charges lower interest, transferring your debt from one credit card to another could save you money, although remember that transfer fees might apply to any transfers you make. A balance transfer credit card may also aid in paying off your dues quicker and potentially reducing your expenses.
Business credit cards often come with added incentives such as rewards, which can vary depending on the credit card company. By opting for a business credit card, you may be eligible to receive rewards such as cash-back, air miles or other bonuses for your business expenses
Money transfer credit cards operate differently from regular credit cards as they allow you to transfer funds from your credit card to your bank account. This feature enables you to use the transferred amount to settle debt or finance a purchase. For instance, you may use a money transfer option to repay an overdraft, personal loan, or fund a significant expense, such as purchasing a new vehicle.
Opting for a money transfer card with a 0% promotional offer enables you to pay off the debt without incurring interest charges for a specified period. While this could be an inexpensive method of borrowing, it is important to clear the balance before the promotional offer expires and the interest rate increases.
A cash-back business credit card will allow you to earn cash-back rewards for the purchases made using the card. These cash-back benefits usually come in the form of a percentage of the purchase amount as cash-back, which can be credited back to your account, redeemed as statement credits, or received as gift card credit.
Cash-back business credit cards make an attractive option for businesses that frequently make purchases, as they provide a straightforward rewards system based on spending. Meaning you can get rewards from simply making essential and routine business purchases, which all add up.
Some cash-back business credit cards may offer rewards such as points or miles, sign-up bonuses, travel insurance, and other benefits that could add value to your business. The amount of cash-back earned depends on the credit card's terms and conditions, including the percentage of cash-back offered, any caps or limits on earnings, and any applicable fees or interest rates. So, before applying for a cash-back business credit card, it is essential to compare the rewards, fees, and other terms to find the best card for your business needs.
Travel business cards are a useful tool for businesses that travel frequently and may want to earn rewards on their travel expenses while enjoying various travel benefits. They may also have lower fees when compared to regular business cards. You may find a card which doesn't charge a non-sterling transaction fee, which can bring down the costs of international spending. Before settling on a travel credit card, it's important to thoroughly examine the features and fees offered to ensure that they align with your requirements and don't cut into your business earnings.
Using a business credit card can benefit your business in many ways. Firstly, it can help establish a good credit rating, making it easier to secure future financing, whilst also offering higher spending limits and extended repayment terms.
Business credit cards also offer improved fraud protection compared to debit cards and tools to manage spending. They can help improve cash flow and cover expenses in case of emergencies. Lastly, they offer company-specific rewards, tailored to your business needs such as travel rewards or cash-back bonuses.
Improving Business Cash Flow
Company-specific rewards
Boosting your business credit rating
Before getting a business credit card, it is essential to consider several factors. Firstly, determine how the card will benefit your business, whether it's to offer flexibility to employees or to earn rewards and cash-back. Secondly, assess whether the annual fee associated with the card justifies its benefits. It's advisable to make the payment before applying for the card. Thirdly, ensure that your company can pay off the monthly expenditures to avoid interest charges that could negate any benefits. Finally, choose a business credit card that suits your specific needs, such as 0% interest on purchases, insurance, or fee-free spending abroad.
To be eligible for a business credit card, you must hold the position of a business director or operate as a sole trader, have complete registration of your business and commenced trading. The application process can be completed in person at a bank or online. Lenders will usually conduct a credit assessment and review your business financials before making a decision.
Business credit cards offer distinct advantages that cater for the needs of your business. They typically offer higher credit limits, employee cards, and rewards programs. Additionally, some of the primary benefits of using a business credit card include the separation of personal and business finances, wider acceptance than debit transactions, and the ability to set spending limits to manage expenses effectively.
While it may not be against the law to use a business credit card for personal expenses, it is not advisable to do so. It is recommended that business credit cards be used solely for business-related transactions and expenditures, such as travel expenses, office supplies, or invoice payments. Business credit cards can also be used for business transactions and small purchases, such as paying invoices, purchasing equipment (e.g. items of office furniture), travel and employee expenses.
The pros of a business credit card can outweigh the downsides for some. A business credit card can help you to build the credit score of your business account. It may result in typically higher credit limits than consumer cards, whilst also making it easier to monitor spending on employee cards and manage expenses through various tools. You can have flexibility on short-term cash flow. There are chances to earn rewards and cash-back on business spending. It can make it easy to identify business expenses during tax season.
The cons typically include factors such as requiring a good credit history and the details of an already established business to qualify or leading to debt in cases where repaying costs is no longer possible. You may also incur steep interest charges should you not pay balances off in full each month.
