Credit Card Options for Business Purchases: Cashback, Rewards and Limits

A business credit card for day-to-day purchasing can create a useful buffer between spending and payment, giving you a running record of outgoings, and return benefits on spend through cashback or rewards.

The options on the market differ more than their headline rates suggest. This guide covers what to look for, then runs through five of the most widely used UK
business credit cards for purchases with their key features, trade-offs, and the type of business each tends to suit.

Note: All information correct as on 13/07/26. Rates, fees and terms are subject to change. Check directly with each provider before applying. 

What makes a good business credit card for purchases?

A purchasing card needs to fit how your business actually spends. A cashback rate or rewards programme that doesn't match the type and frequency of your purchases may simply not return the value it promises.

• Interest-free period (grace period): Most business credit cards offer a period during which purchases attract no interest, provided you clear the full balance by the due date. Clear the balance in full each month and you pay no interest on purchases at all. Carry a balance and the card's standard purchase rate applies from that point.

• Cashback on spend: Some cards offer flat rate cashback for business on all spend while others tier it by category, cap it at a monthly spend threshold, or restrict it to certain purchase types. If you’re putting varied spend through a card, a flat uncapped rate can be simpler and more predictable. A higher rate that only activates above a monthly spend figure may return less over a year than a lower rate with no restrictions, particularly in quieter months.

• Purchase protection: Business credit cards do not carry the Section 75 protections that apply to regulated Consumer Credit Agreements. Most offer chargeback rights through the card scheme (Visa or Mastercard), which allows you to dispute transactions where a supplier fails to deliver or there has been an error. The scope varies between providers, so it is worth reading the specific terms of any card before applying.

• Credit limit: The limit determines your purchasing headroom. For businesses with consistent or high-volume purchasing, a low limit can make a card harder to use. Limits are set individually based on turnover, trading history and creditworthiness.

• Fees and FX charges: Business credit card fees, foreign transaction fees, and charges for additional cardholders can erode the value of cashback or other benefits. Some cards carry no annual fee and no foreign exchange charges; others charge both. These are worth calculating against the rewards you would expect to receive.

• Eligibility: Most business credit cards for established companies require you to be a UK limited company or LLP. Some also require you to hold a business current account with the provider. You can check Funding Circle’s eligibility here.

Five business credit cards for purchases: what they offer and who they suit

Funding Circle Cashback business credit card: market leading cashback on purchases

What it offers: 2% cashback for the first 6 months (up to £2,000 cashback), then 1% uncapped cashback on all spend after that. Up to 42 days interest-free on purchases (grace period, not a 0% intro rate). No annual fee. No foreign exchange fees. Free unlimited Company cards. Credit limits up to £250,000 subject to assessment. Syncs with Sage, Xero and FreeAgent. Rates from 14.9% per year; representative 34.9% APR (variable).

Eligibility: UK limited companies, trading at least one year with a minimum annual turnover of £30,000. Only limited companies can check eligibility without affecting their credit score. No existing current account required.

Who it suits: Established limited companies that want to earn cashback on all their spending, including international spend, from day one. The 2% introductory rate is particularly useful for businesses with significant purchase volume in the first six months.

Find out more about the Funding Circle Cashback card.

Capital on Tap Business Credit Card: best for everyday flat-rate rewards

What it offers: 1% uncapped cashback on all card spending from the first pound. Rewards redeemable as cash, Avios, Virgin Points or Radisson Rewards. Up to 42 days interest-free (grace period). No annual fee. No foreign exchange fees. Free employee cards with individual spend controls. Credit limits up to £250,000. Rates from 13.86% APR (variable).

Eligibility: UK limited companies and LLPs. Minimum annual turnover of £24,000. Soft credit check available.

Who it suits. Businesses that want a straightforward 1% return from day one without a minimum monthly spend threshold, and flexibility to redeem rewards in different ways including travel points.

Information on features and eligibility here.

Barclaycard Select Cashback: for higher-volume spenders

What it offers. 1% uncapped cashback on eligible business spending, paid monthly. Up to 56 days interest-free on purchases (grace period). No annual fee. Access to Barclaycard Business Rewards (partner discounts). Representative 25.5% APR (variable).

Eligibility: UK businesses (sole traders, partnerships, limited companies and LLPs) with annual turnover of £10,000 or more. No Barclays business current account required.

Who it suits. Businesses that consistently spend £2,000 or more per statement month — that is the threshold below which no cashback is earned. For businesses with steady, high-volume spending that clear their balance monthly, the 25.5% representative APR is lower than most fintech alternatives. Wide eligibility also makes it accessible to businesses that are not limited companies.

Note: the £2,000 monthly spend threshold for cashback is a high bar. In any month where spend falls below it, no cashback is earned for that period. Also, foreign transaction fees of 2.99% apply, which will offset the 1% cashback on any international spend.

Information on features and eligibility here.

Lloyds Bank Business Credit Card: best for businesses with a Lloyds current account

What it offers: 1% cashback on fuel and electric vehicle charging, 0.5% on other eligible purchases. Up to 56 days interest-free on purchases (grace period). No annual fee for the first 12 months (£32 per year after that). Credit limits up to £25,000. Travel insurance and buyers' protection insurance included. Representative 15.95% APR (variable) — one of the lower rates available on the market.

Eligibility: Requires an existing Lloyds Bank business current account. A minimum spend threshold of £2,000 per billing cycle applies for cashback to be earned. 

Who it suits: Businesses already banking with Lloyds that want a low-APR card and are comfortable occasionally carrying a balance, or that want built-in insurance. The 15.95% representative APR is notably lower than most alternatives.

The cashback structure is tiered (higher on fuel and EV charging) which will not suit all businesses equally. The account-holder requirement means this is not a standalone option for businesses without a Lloyds current account. Annual fee applies from year two unless waived by meeting the spend threshold.

Information on features and eligibility here.

American Express Business Gold Card: best for travel rewards and points

What it offers: 1 Membership Rewards point for almost every £1 spent. Points redeemable for travel (Avios, Virgin Points), hotel stays, statement credits and more. Up to 54 days interest-free (grace period). Annual fee of £195 (waived in the first year). Free employee cards. Purchase rate 29.1% p.a. variable.

Eligibility: UK limited companies and LLPs only (sole traders and partnerships have not been eligible since January 2026). No minimum turnover stated. Applicants must have a UK bank or building society account and a personal income. Eligibility assessed individually.

Who it suits: Businesses that clear their balance in full monthly and want to convert spending into travel rewards or other flexible redemptions. The fee-free first year makes it low-risk to evaluate. The Flexible Payment Option introduced in January 2026 allows part-payment, though interest at 29.1% p.a. applies to any balance carried.

Worth knowing: American Express is not accepted by all UK suppliers, so most businesses will need a Visa or Mastercard alongside it.

Information on features and eligibility here.

Business credit card for purchases comparison table

Aligning your purchasing card to your spend

The right card depends on what your business actually buys and how you manage repayment.

If your spend is high-volume and varied, a flat-rate cashback card with no category restrictions can return more value than one with tiered rates that favour specific types of spending. If you're making larger, less frequent purchases, the interest-free period and the credit limit become more important, because you need the headroom and the time to manage cash flow around the purchase.

It can be useful to think about how the card fits your repayment cycle. A card with a long grace period is valuable if you always clear in full. If you're more likely to carry a balance occasionally, then the purchase rate could matter more, and the maths changes.

What to check beyond the headline rate

Annual fees, foreign transaction fees, and other charges can erode the value of cashback or other benefits, particularly if the business spends internationally or travels frequently.

• Fees: Some business credit cards charge no annual fee and no foreign exchange fees on card purchases. Others charge both, and sometimes for supplementary cards too. These are worth adding up against any cashback or rewards you'd receive to understand the net position.

• Eligibility: most business credit cards are available only to incorporated companies (limited companies in the UK) rather than sole traders or partnerships. Lenders set their own criteria for trading history and minimum turnover, so it's worth checking whether your business meets the requirements before applying. Some providers allow limited companies to check their eligibility without affecting their credit score.

Note that fees vary between lenders and individual accounts. When comparing cards, use the full terms rather than the headline summary, and consider the overall cost structure relevant to your spending patterns.

Funding Circle for business purchases

The Funding Circle Cashback business credit card gives small businesses a straightforward way to manage purchases, alongside real returns on spend.

• Enjoy up to 42 days interest-free credit on purchases

• Earn 2% cashback for the first 6 months (up to £2,000), then 1% uncapped cashback on all spend after that. 

• No annual fees, no foreign exchange fees on card purchases

• Free unlimited Company cards for your team.

Credit limits go up to £250,000, subject to eligibility and individual assessment. The card runs on Visa, accepted online and in-store wherever Visa is taken. 

Find out more and apply here.

Credit Card for Business Purchases FAQs

What's the best business credit card for large purchases?

For large purchases, the most relevant features are a sufficient credit limit to cover the spend, an interest-free period if you'll clear the balance before the due date, and any purchase protection the card scheme provides. The right card depends on your specific circumstances, including your turnover, trading history, and how you manage repayment. It's worth comparing the full terms of any card rather than the headline rate alone.

Do business cards offer purchase protection?

Some business credit cards offer some form of protection through the card scheme's chargeback process, which allows you to dispute transactions where a supplier fails to deliver or where there's been an error. This is different from the statutory protections that apply to consumer credit under Section 75 of the Consumer Credit Act, which generally do not extend to business credit agreements. The scope of protection varies by provider and card scheme, so check the specific terms of any card you're considering.

How does the interest-free period work?

The interest-free period (also called the grace period) is a window in which purchases made during your billing cycle attract no interest, provided you clear the full outstanding balance by the repayment due date. 

Disclaimer

13/07/2026 – 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. All information is correct at time of publishing, and customers should do their own research before making financial decisions. If you have any questions, please speak to your professional adviser or seek independent legal advice.