Guide to Business Credit Cards

Guide to Business Credit Cards

No matter how small your business is, a Business Credit Card is a necessity. Credit cards can be a useful way of getting access to short term business finance and can help you overcome cash flow shortfalls. They can also help build up good credit history for your business.

A credit card can provide your business with access to funds up to the value of your credit limit and it is possible to limit or even completely avoid charges if you pay off the entire balance in full when you receive the bill. However if you are not able to pay off the balance in full each month, credit cards can become an expensive way to borrow money.

Business Credit Cards also allow you to keep your personal and business expenses separate and can help you manage your accounts, as the credit card statement provides a detailed list of transactions that can be easily analysed and expenditure accounted for.

How to choose a Business Credit Card

The first step in choosing a Business Credit Card is to understand why you want one and what you plan to use it for. If you are simply looking for a way to get access to business finance, Business Credit Cards may not be the most cost-effective solution, and you may wish to consider other business finance options.
Once you have decided that a Business Credit Card is the right solution for your business, consider the following tips before you make your decision:

  • Select a card with the lowest APR possible, as this will help control finance costs.
  • Look for promotional low or a 0% rate of interest for the first few months; this can be a great way of getting access to funds at no extra cost for several months.
  • Be aware of the annual fee if there is one.
  • Understand the maximum interest-free period between making a purchase and paying it off; try to pay off the balance in this period to avoid charges.
  • Looking for added benefits such as cash back and reward schemes and try and make use of them.

Advantages and disadvantages of Business Credit Cards


  • Quick and easy way to make purchases without having to worry about immediate cash flow
  • Provided you pay your bill in full, you will receive interest free credit
  • Simpler accounting, the monthly statement makes it easy to track expenses
  • Fraud and purchase protection provided by your credit card issuer


  • If you are not able to pay off your balance in full, you may encounter high rates of interest
  • Can be an expensive method of business finance
  • Not suitable for medium or long term financing
  • Can be easy for expenditure to get out of hand

For further information about business finance please contact our advice team on 0800 597 4757 or apply online using the form opposite.