Business Credit Cards for UK Limited Companies
A business credit card gives a limited company, LLP or partnership a revolving credit line for day-to-day spending, separate from a term loan or asset finance agreement. Limits typically run from £1,000 to £50,000, APRs from around 18% to 30%, and most cards offer an interest-free period if the balance is cleared in full each month.
What a business credit card is and how it works
A business credit card is a revolving credit facility issued in the company's name, letting a limited company, LLP or partnership of 4+ make purchases up to an agreed limit and either clear the balance monthly or carry it forward at interest. It sits alongside, not instead of, other specialty finance such as a business loan or asset finance.
Unlike a term loan, there's no fixed repayment schedule or amortisation table. The lender sets a credit limit based on the company's trading history and directors' personal credit, and the balance moves up and down as the business spends and repays. Most UK business cards run on the Visa or Mastercard network, with individual employee cards issued under the main account and controlled centrally.
How a business credit card differs from a loan or MCA
A business credit card is built for flexible, recurring spend, while a term loan or merchant cash advance is built for a one-off capital need such as equipment, a tax bill or working capital. A card has no set end date; a loan or MCA has a defined repayment term and total cost calculated up front.
Interest on a card only accrues on the balance carried past the interest-free period, so a company that pays in full each month can use it at effectively 0% for short-term cash flow timing. A loan or MCA charges interest or a factor rate from day one regardless of how quickly the funds are used, which makes a card cheaper for genuinely short gaps and a loan cheaper for planned, larger spend.
Eligibility for limited companies, LLPs and partnerships
Business credit card providers generally require the applicant to be a limited company, LLP or partnership registered with Companies House, trading for at least 6 to 12 months, with at least one director prepared to give a personal guarantee on the account. Sole traders are usually offered a personal credit card product instead, which is why FundBiz doesn't route sole trader enquiries into this cluster.
Most providers run a soft search on the company and a credit check on the named director, then a hard search when the application proceeds. Turnover, time trading and existing debt all feed into the limit offered; a company with a thin or adverse credit history will typically be offered a lower starting limit or a secured card rather than being declined outright.
APR, credit limits and fees
Standard UK business credit card APRs sit roughly between 18% and 30%, with the exact rate driven by the company's credit profile and whether the card carries an annual fee. Some providers price variable-rate cards off the Bank of England base rate (currently 3.75%, last moved 18 December 2025) plus a margin, so the APR moves when the base rate does.
Credit limits typically range from £1,000 for a new or thin-file company up to £50,000 or more for an established business with strong turnover. Annual fees range from £0 on no-frills cards to £150+ on cashback or rewards cards, and most charge 2.75% to 2.99% on non-sterling transactions.
Charge card vs credit card: repayment structures
A charge card requires the full balance to be repaid every month with no option to carry a balance, which keeps borrowing costs at zero but means missed payments are treated more strictly than on a revolving card. A credit card allows the company to carry a balance and pay interest on it, giving more flexibility but at a real cost if used as ongoing borrowing.
Businesses that want a card purely for expense management and supplier payment timing tend to prefer a charge card or a card with a strict monthly clear-down policy. Businesses that expect to occasionally carry a balance for a few weeks should compare APR and any 0% purchase introductory period rather than assuming all business cards work the same way.
Where a business card fits alongside other finance, and the risks
A business credit card works best as a day-to-day spending and cash flow timing tool, sitting alongside a longer-term facility such as an asset finance agreement or a VAT loan for larger or planned costs. Using a card to fund a large one-off purchase and only making minimum payments is one of the more expensive ways to borrow, given APRs well above most secured lending.
As with most unsecured business lending to smaller limited companies, providers commonly ask for a personal guarantee from at least one director, so a card default can affect the guarantor personally as well as the company's credit file. Setting individual cardholder limits and reviewing statements monthly reduces the risk of uncontrolled spend building up across a team.
| Card type | Typical APR | Credit limit range | Repayment requirement | Best for |
|---|---|---|---|---|
| Standard business credit card | 18% to 30% | £1,000 to £50,000 | Minimum payment or full balance | General day-to-day spend |
| 0% purchase intro card | 0% for 6 to 12 months, then 20%+ | £1,000 to £25,000 | Minimum payment during intro period | Planned short-term spend |
| Business charge card | No interest charged | Set by provider, often higher | Full balance every month | Expense control, no revolving debt |
| Secured / adverse-credit business card | 25% to 35%+ | £500 to £5,000 | Minimum payment or full balance | Thin-file or post-decline companies |
Step-by-step
- Check the company is Companies House registered and has been trading for at least 6 to 12 months
- Gather company financials, recent bank statements and details of any existing borrowing
- Compare APR, credit limit, annual fee and any 0% purchase period across providers
- Apply as the company, with a director agreeing to a personal guarantee where required
- Set individual cardholder limits and a monthly review process once the account is live
Example
A logistics LLP with four partners used a £15,000 business credit card to cover fuel and maintenance costs across its driver team, clearing the balance in full each month to avoid interest. When a large repair bill pushed spend past the limit for one cycle, the LLP separately arranged short-term asset finance for the replacement vehicle rather than carrying the card balance at 24% APR.
Frequently asked questions
Can a new limited company get a business credit card?
Yes, though most providers prefer at least 6 to 12 months of trading history and will look at the director's personal credit file alongside the company's. A newly formed company may be offered a lower starting limit or a secured card rather than a standard unsecured facility.
Do business credit cards require a personal guarantee?
Most unsecured business credit cards for smaller limited companies, LLPs and partnerships ask at least one director to give a personal guarantee. This means the director can be pursued personally if the company defaults, so it's worth understanding before applying.
Is a business credit card cheaper than a business loan?
It depends on how it's used. Cleared in full each month, a card can be effectively free for short-term timing gaps. Carried as a balance over months, the APR is usually higher than a secured business loan or asset finance agreement, so it isn't a substitute for planned larger borrowing.
Can sole traders apply for a FundBiz business credit card comparison?
No. FundBiz compares finance for limited companies, LLPs and partnerships of 4 or more, which keeps the service outside FCA consumer credit permission requirements. Sole traders looking for a business credit card should compare directly with card providers or a broker that covers that market.
What happens if a company misses a business credit card payment?
A missed payment is usually reported to the credit reference agencies against the company and can trigger a rate increase or reduced credit limit. If a personal guarantee is in place, repeated missed payments can also affect the guarantor director's personal credit file.
By Adam Parker, Director, Best Business Loans Ltd. Last reviewed 2026-08-01.