Business credit cards for new businesses: what you need to know

Most new companies need finance to manage cash flow and invest in assets, inventory and advertising. When you’re newly starting out, there’s a tricky balance between funding business growth and getting money through the door. Business credit cards can be a crucial source of working capital and a great way to build your credit history as cash flow fluctuates. But as a new business, how easy is it to get approved and what are your options?

We look at what you need to know about business credit cards for new businesses, from lender eligibility criteria and approval factors to how to use the cards to your advantage. 

Can a new business get a credit card?

Yes. While it can be harder to access credit in the early stages, new businesses can get a credit card. But eligibility depends on several factors, such as trading history, turnover and incorporation status. For example, many card providers have thresholds for turnover and how long you've been operating. But eligibility requirements vary between different providers. 

What does "new" mean to a lender?

From a lender’s perspective, those within their first 24 months of operating are deemed new businesses (not just when a company was incorporated). Lenders usually want to see at least a year’s records to get a good idea of your company’s operations, transactions, cash flow and risk level.

If you’ve just launched and don’t qualify, you may need to use your personal credit card initially or consider other sources of finance before you’re eligible for a new business credit card.

What do lenders assess in newer businesses seeking a credit card?

When applying for a credit card for a new company, UK lenders use various factors to assess your application, including when and where you were incorporated, your trading history and turnover, plus your credit record. This may include a personal credit check due to limited business credit records.

Let’s look at these individually and the reasons lenders use these factors:

Trading history and turnover

Getting a business credit card with no trading history can be difficult. According to the British Business Bank’s 2026 Small Business Finance Markets Report, 314,000 start-ups were created in 2025. 

Given the nature of credit lending, most UK business credit card providers, including Funding Circle, have minimum trading periods and turnover thresholds. This helps prove you’re bringing in regular revenue and that you’ll be able to make credit repayments. Thresholds vary, but you’ll often need at least 6-12 months’ trading history. However, some providers accept even newer businesses, depending on other factors like personal credit history.

Incorporation status

Most UK banks and credit lenders require businesses to be incorporated (Ltd or LLP) and registered in the UK. That’s not to say sole traders or pre-trading entities can’t get business credit cards. Some lenders have solutions dedicated to different business types. But there are typically far fewer options, so you may have to settle for personal credit cards and charge cards before incorporation. 

Learn more about limited company credit cards and how to choose the right one for your business.

Director credit history and personal guarantees

As a newer business, you may be subject to director’s credit checks due to limited trading records, and lenders can request personal guarantees as an additional layer of protection in the event of a default. 

Greater weight is typically put on personal credit history for business credit card applicants with shorter track records.

Eligibility requirements and why some new businesses don't qualify yet

You may not qualify for a new business credit card with certain providers if you haven't yet got the necessary track record or turnover to meet the eligibility criteria. Where and how your business is set up may also rule you out.

While this is frustrating, these requirements exist because lenders are looking for an established trading pattern. It’s not necessarily a reflection on your business’s potential or capabilities. 

What are Funding Circle’s business credit card eligibility requirements?

Funding Circle’s eligibility criteria are straightforward. Here’s what you need to qualify for our Cashback business credit card:

• You’re a UK-based Ltd or LLP

• You’ve been trading for at least 12 months

• You have a turnover of £30,000 or more 

Getting business credit cards when you’re new or have no (or minimal) trading history can be tricky. The good news is, even if you don’t qualify, there are lenders out there offering financial products aimed at early-stage businesses, such as start-up loans or invoice finance. Or you can use personal credit cards for business expenses in the meantime. 

What should a newer business look for in a credit card?

If your company qualifies for a new business credit card, there are lots of benefits to enjoy. You can manage your cash flow more effectively, access equipment and inventory in key sales periods and fuel business growth. Also, responsible card use will improve your credit record. 

Here are a few pointers about what to look for (and benefit from) in a new business card:

Keeping costs low

Naturally, as a newer business, cash flow is often tighter. So, you’ll want to keep costs low and avoid unnecessary fees. Here are some ways to do this:

• Consider credit cards that don’t have an annual fee – many cards with annual fees boast flashy perks and rewards that you might not really need

• Compare the representative APR advertised by each provider 

• Explore cards with zero FX fees if you regularly travel for business or have international suppliers

• Look for longer interest-free periods*

At Funding Circle, we keep things simple and affordable for new businesses. That means no annual costs, no FX fees and no hidden charges. Plus, we offer a 42-day interest-free window. 

*These interest-free windows are for balances cleared in full, offering a grace period before interest is applied.

Choosing a credit card for new businesses with suitable features and rewards

Credit card providers offer various rewards, from cashback and air miles to VIP access. However, for newer businesses, many of these perks are not a priority, and come at a price.

So, instead of just spending extra on premium features, focus on what you need right now. It’s worth calculating the potential total costs vs the value of the features/rewards for your particular requirements.  

Funding Circle has an easy-to-understand cashback structure – 2% for the first 6 months (up to £2,000), then 1% uncapped thereafter. We also provide easy integration with popular accounting software.

Building business credit

If you get approved for a new business credit card after your first year of trading, make sure to use it effectively and responsibly to get the most out of the benefits and avoid negative impact on your credit score.

Prompt repayments and staying within recommended credit utilisation ratios build your business credit profile, which helps you down the line when applying for business loans and lines of credit.

Funding Circle's business credit card and eligibility

While our business credit card is for new and growing businesses, applicants must be UK-based incorporated companies, trading for at least a year (with £30k+ turnover).

If you’re eligible, you can apply online in minutes and get a quick decision. Benefits include:

• 2% cashback on the first 6 months (up to £2,000), then 1% uncapped

• Credit limits of up to £250,000

• No annual costs or FX fees

• Free unlimited employee cards

• Easy accounting software integrations and expense management features

• 42-day interest-free period

Check your eligibility and learn more about Funding Circle’s Cashback business credit card to see if it suits your spending needs.

New business credit cards FAQs

How long does my business need to be trading to get a credit card?

There’s no set rule on trading history requirements across all UK card providers. Many lenders expect newer businesses but want to see an established trading record. Check providers’ eligibility requirements to see their limits before applying.

Can I get a business credit card with no trading history?

If your company has no trading history, it can be difficult to get a business credit card. However, there are a few exceptions. Some providers offer dedicated solutions for brand new businesses, while others accept those with a strong personal credit history or previous business experience.

Does applying for a card affect my credit score?

Most company credit card applications require a hard search of your business or personal credit history, which leaves a mark on your credit file. This can influence your credit score for a limited period. So, it’s good to use business credit card eligibility checkers before applying, as they use soft searches that don’t affect your score. 

Is incorporation alone enough to qualify?

No. While most business credit cards are aimed at limited companies, incorporation is one of several factors that influence whether you’re eligible for a business credit card, such as trading history, credit scores and turnover. There are credit card providers that accept sole traders and other entities.

What can a new business use instead, if it doesn't qualify for a company credit card yet?

Don’t worry if you don’t qualify for a business credit card. New businesses can use personal credit cards or business overdrafts as interim solutions, or other forms of business finance. Invoice factoring and discounting can be good options, as funding decisions are often determined by your client’s creditworthiness, not yours.

Disclaimer

25/07/26 – 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.