Best credit cards for business owners

The right business credit card can help you manage cash flow, earn rewards on everyday purchases, and keep corporate finances separate from personal accounts. But with so many options, you first need to understand what matters most to your company. Here's our guide to the best business credit cards in the UK for 2026, from cashback rewards to flexible repayments.

Things to think about when choosing a business credit card

When it comes to choosing between the options available, small details can have a big impact on your finances. The right card for you will depend on how you want to use it, and what you want to achieve. 

• Rewards & Cashback – How much will using your card earn you? Are there any categories with higher rates? Knowing what cashback is for business and how the returns increase over time before you choose a card is helpful.

• Annual fee – Some cards have an annual fee, some are free. Check whether the rewards are worth the cost.

• Credit limit – Ensure the limit is in line with what you typically spend in a month, without reaching limits too often.

• Interest-free period – Most cards include an interest-free period of 30-60 days on purchases. If you carry balances, the longer the period, the better.

• Foreign exchange fees – Check the exchange rates and international fees if you are trading overseas.

• Accounting software integration – Look for cards that integrate with accounting software like Xero, QuickBooks or FreeAgent to automatically log expenditure.

• Eligibility requirements – Some cards may require you to have a certain business structure or minimum turnover.

Best business credit cards: our picks

Note: All information correct as of the time of publishing. The information provided in this section was researched by Funding Circle. Please note that this is not financial advice and customers should conduct their own market research to find the best solution for you

Best for cashback: Funding Circle Cashback Card

Who it suits: Businesses with ongoing spending that want to earn rewards on everyday purchases without paying annual fees

• Funding Circle's Cashback Card gives you 2% cashback for 6 months (up to £2,000 spent), then 1% uncapped, with no minimum spend requirements. 

• No annual fee, no foreign exchange fees, and up to 42 days interest-free on purchases. 

• Available credit limits of up to £250,000 and automatic synchronisation with most accounting software. 

• Interest rates start at 14.9% per year on any balance carried forward. 

Best for flexible repayment: FlexiPay by Funding Circle

Who it suits: Businesses with unpredictable or large one-off costs that want predictable monthly payments

• FlexiPay spreads costs across flexible terms: 1, 3, 6, 9, or 12 months with a flat fee of 1.99% per transaction. 

• No compound interest. Instant decision on approval.. 

• Credit limits can reach up to £250,000, so you can make larger purchases or invest in equipment. 

• The repayment timeline for each transaction is separate, so budgeting is straightforward and transparent.

If you are comparing the two Funding Circle solutions, FlexiPay or Cashback: which is right for you? covers the key differences. FlexiPay is a great option for companies that want the flexibility of credit without ongoing balances. 

Best for premium benefits: American Express Business Gold Card

Who it's for: Established companies looking for premium benefits and higher spending limits

• The Amex Business Gold Card (available to limited companies and LLPs) costs £195 per year (waived in the first year) and offers strong perks: 1.5x points on Amex Travel bookings and 1 point per pound elsewhere. 

• You get up to 54 days interest-free on purchases, an increased credit limit, and access to personal concierge services. 

The main drawback is that it's restricted to limited companies and LLPs, and the annual fee may not be worth it for lower-spending businesses.

Best for established businesses: Business Credit Card from Barclays

Who it's for: Established businesses searching for local support and traditional banking features

• Barclays Business Credit Card has no monthly limit on the number of transactions you can make. 

• The basic card, which carries no annual fee, provides up to 56 days of interest-free purchases and integration with accounting software. 

It's designed for businesses that want straightforward features and local branch support without premium costs. Free tiers have slightly more limited cashback options than specialist providers.

Best for sole traders: Lloyds Business Credit Card

Who it's for: Sole traders and partnerships who value clear, straightforward rewards

• Lloyds offers 1% cashback on fuel and EV charging, 0.5% on other purchases (minimum monthly spending £2,000). 

• Annual fee: £32 (waived for first 12 months or if you spend over £6,000 yearly). You receive up to 56 days interest-free on purchases. 

The main limitation is the minimum spend required to earn rewards and the fact that you must hold a Lloyds Business Current Account.

Best for international businesses: Wise Business Card

Who it's for: Companies involved in international trade aiming to reduce foreign exchange costs

• Wise Business Card offers real exchange rates with minimal markups, multi-currency accounts in 40+ currencies, and no foreign exchange fees. 

• No annual fee. Quick approval. 

• If your business makes regular international payments or receives income in foreign currencies, this card is a potential option. 

One thing to note is that it’s primarily designed for international payments rather than domestic cashback, so if your company only spends in the UK, it may not be the best solution.

Best for newer businesses: Iwoca Business Card

Who it's for: Newer or younger businesses looking for a credit card with cashback and flexible terms

• Iwoca's credit card offers 1% cashback on all spending, up to 42 days interest-free, and a credit limit up to £250,000. 

• There are zero annual fees, zero FX fees, and zero late payment fees. 

• Interest rates start at 14.99% per year (35.40% representative APR). You get a 5-minute application with instant decisions that don't affect your personal credit score, and the app gives you real-time spending information.

Iwoca considers alternative data alongside credit scores, making it accessible to newer or younger businesses. The trade-off is that interest rates are higher than premium cards once the interest-free period ends.

Why get a business credit card?

A business credit card provides an additional financial tool for your business to manage cash flow, debt and improve your credit score.

• Simplified admin: Business credit cards make it easy to separate business and personal costs, so you can do your accounting and tax preparation more easily. 

• Rewards: Cashback and rewards on everyday purchases can add up quickly - spend £10,000 a month at 1% cashback and you'll earn £1,200 a year for free. 

• Accountability: Cards also provide a clear audit trail of expenses that can be valuable at tax time or in audits. 

• Cash flow management: Interest-free periods enable businesses to manage cash flow, giving them short-term flexibility without the need for large balances. 

• Expense management: Integration with accounting software is common, making it easy to track expenses and reducing admin time. 

• Flexible business finance: Business cards often have higher limits than personal cards, so they're better for large purchases. They also help you build business credit history, which will assist you when seeking loans or other financing in the future.

What are the disadvantages of a business credit card?

Used carefully, a business credit card can help you stay on top of your finances, but they also come with some risks, so it’s important to use them responsibly.

• Interest rates: Business cards often have higher interest rates than personal cards, typically between 10-20% depending on your creditworthiness. Balances carried beyond the interest-free period can dramatically increase costs.

• Extra fees: Many premium cards carry annual fees that can cut into your cashback returns, especially for businesses with limited spending. 

• Spending limits: Some cards require you to spend a minimum amount to qualify for rewards, so if you use your card occasionally, you may not benefit from them. 

• FX costs: Standard cards can have significant foreign exchange markups, so spending abroad is expensive. 

• Personal risk: If you're a director or sole trader, most business credit cards require a personal guarantee, which can impact your personal credit score. 

A credit card is not the best solution for businesses with large or irregular funding needs. Business loans are often more favourable for substantial capital expenses.

Note: All information above relating to fees, charges and other factors are representative and for informational purposes only. It is important to conduct your own market research to find the best product for your business.

FAQs

What is the best business credit card for startups?

Startups should search for cards with low or no annual fees and adjustable credit limits. Funding Circle's Cashback Card is best for entrepreneurs with consistent spending. FlexiPay is best for those with irregular or one-off charges. American Express and Barclays also accept newer businesses, although initial credit limits may be smaller.

Do business credit cards affect personal credit?

Yes, whether you are a sole trader or director, business credit cards usually require a personal guarantee, so payment behaviour can appear on your personal credit report. Missing payments or defaults will impact both your personal credit score and your business credit score. Limited companies may have less effect on personal credit, but directors are usually still required to guarantee the card.

Are business credit card expenses tax deductible?

You can usually deduct annual fees and interest charges as business expenses on your business credit cards. However, only interest and fees are tax-deductible, not the principal amount you are repaying. Cashback rewards are typically not taxable because they constitute a rebate or discount on a transaction rather than income. You should consult your accountant for advice relevant to your circumstances.

Further reading

• What is a business credit card and how does it work?

• Business credit cards vs business loans

• 5 reasons to apply for a small business credit card

• 4 smart ways to use a business credit card

Disclaimer

02/07/2026 – We do our best to help, but the material here is for information purposes only and should not be used as financial, tax or legal advice. Funding Circle does not claim that the content provided in this document is accurate, and to the extent permitted by law, Funding Circle shall not be liable for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained in this document. If you have any questions, please get independent legal advice or consult your professional adviser.