What is a 0% business credit card?

Most business credit cards charge interest when you don’t pay your balance in full each month. Whilst that is very much the tried and tested approach, is there such a thing as a 0% business credit card? And if so, are there catches? Is it too good to be true? We share the answers in this guide to 0% interest business credit cards. 

What is a 0% business credit card?

A 0% business credit card offers a temporary interest-free period on purchases or balance transfers. The introductory offer typically lasts from six to 18 months, during which you won’t pay any interest on new purchases or balance transfers. Once the promotional period ends, the card reverts to its standard interest rate, which can be significantly higher.

Unlike standard business credit cards that start charging interest immediately, 0% interest cards can provide breathing space for your company’s finances. They’re designed to help businesses manage cash flow more effectively, particularly when making large purchases or dealing with seasonal fluctuations.

How do 0% business credit cards work?

The concept is fairly straightforward. When you’re approved for a 0% business credit card, you’ll receive a credit limit based on your business creditworthiness. During the promotional period, you can make purchases without accruing interest charges, as long as you make at least the minimum monthly payment.

Even with a 0% interest rate, you still need to make minimum monthly payments. If you miss a payment, you could be charged a late payment fee. What’s more, your 0% offer could be withdrawn, and your credit score could be impacted.

Some cards also offer 0% on balance transfers, so you can move existing debt from other credit cards to benefit from the interest-free period. Balance transfers, however, often come with a fee that’s typically between 3% and 5% of the transferred amount.

Benefits and drawbacks of 0% business credit cards

There are several advantages to using a 0% business credit card, including:

• Cash flow management: The interest-free period gives your business flexibility to spread costs without incurring additional charges, helping smooth out cash flow gaps.
• Large purchases: You can finance significant business expenses like equipment or inventory and pay them off gradually without interest during the promotional period.
• Business expenses tracking: Most 0% interest business credit cards come with detailed monthly statements and online tools that help you track and categorise expenses, simplifying bookkeeping and financial planning. 
• Rewards and cashback: Many 0% interest cards also offer perks such as cashback, travel points or discounts with partner businesses, adding extra value beyond the interest-free benefit.

Whilst 0% business credit cards may offer attractive benefits, there are important factors to consider when weighing up your options: 

• Duration of the 0% period: 0% deals on business credit cards don’t normally last longer than six months, which is shorter than what’s typically available with personal credit cards. Make sure the duration meets your repayment timeline.
• Standard APR: Pay attention to the interest rate that will apply after the promotional period ends, as it can vary significantly between cards.
• Fees: Look out for annual fees and other charges that might offset the benefits of the 0% interest period.
• Repayment strategy: Have a clear plan to repay the balance before the promotional period ends to avoid high interest charges.

Alternative to 0% business credit cards

If you’re looking for flexibility in managing business payments without relying on traditional credit cards, FlexiPay from Funding Circle offers an alternative option. With FlexiPay, you can make full upfront business payments, then choose how to repay over 1, 3, 6, 9 or 12 months.

Unlike credit cards that charge interest after promotional periods end, FlexiPay uses a simple fee per transaction with no interest rates. You make payments by card, direct transfer or into your bank account, giving you complete control over your business cash flow without hidden costs or added extras.

It’s an approach that allows you to pay upfront for almost any business cost – from supplier invoices to bulk stock purchases – whilst maintaining the flexibility to repay on your terms.

Learn more about FlexiPay from Funding Circle

Interest-free period with Funding Circle’s Cashback business credit card

Funding Circle’s Cashback business credit card offers up to 42 days interest-free credit, giving you complete cash flow freedom. You’ll not only benefit from the interest-free grace period, but also earn 2% cashback on all spending in your first 6 months (up to £2,000), followed by 1% cashback thereafter. Maximise your business spending without accumulating interest costs with a combination of  interest-free days and cashback rewards. 

Find out more about Funding Circle’s Cashback business credit card

What’s right for you?

With flexible options like FlexiPay, you can match the payment solution to your cash flow patterns and create a clear repayment strategy to ensure it’s all smooth sailing. The ‘right’ solution is what works best for your rhythm – because every business is different. 

24/06/2025: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.