Business credit cards for start-ups: what to know before you apply

If you’ve recently started a business, you may be looking for credit options to manage regular spending and cash flow. Credit cards help spread the cost of key purchases while building your credit history, but are business credit cards for start-ups readily available in the UK?

Getting a credit card as a new business isn’t easy. Many card providers have eligibility criteria and qualification limits that rule out start-ups and certain business types, such as minimum trading-history thresholds. However, products aimed at new companies and cards without such strict limits are available, but they often require deposits or personal guarantees.

Here’s what you need to know about start-up business credit cards, from finding the right solutions to eligibility needs and how to get one.

Note, this guide is for informational purposes only and should not be treated as financial advice. Please consult professional advice prior to taking out a credit facility to ensure you find the right product for your business needs. 

Why start-up eligibility is different for business credit cards

Most business credit card providers assess your trading history, cash flow and other financials, including credit use and debt management. But if you’re a new business, the provider has limited information for evaluating your creditworthiness and risk level. 

That’s why credit card options for start-ups are more limited than for established ones. Many banks and card providers have minimum trading qualification limits, so they can better assess your financial situation, decide whether to approve a credit card application, and set your limit. Mainstream providers usually require at least a year of trading history, amongst other criteria.

What kinds of credit cards are typically available to start-ups?

Business credit cards for a new business or start-up are available in the UK, but usually require a personal guarantee or some form of security/deposit. Or a director’s personal credit may be used in credit checks to make up for the lack of trading history.

This opens up more options for start-ups who otherwise wouldn't qualify for standard business credit cards. It also reduces the lender's risk, giving them more confidence that you can make regular repayments or a route to recover the money if the business fails to make payments

What to check before applying

When you’ve found a suitable business credit card for your start-up, ensure you fully understand the terms, limits, rates, and features like interest-free periods, plus any lender requests, such as a deposit or personal guarantee.

Let’s focus on each of these in more detail:

Personal guarantees

A personal guarantee is a legal pledge in your credit agreement stating that you’re personally responsible for repaying some or all of what the business owes if it can’t make the required repayments or falls into financial difficulties. Learn more in our dedicated article on personal guarantees and how they work.

Potential deposits to secure a start-up credit card

While fairly uncommon, credit card providers can request a cash deposit (to reduce their risk). It’s usually held as security after the card is issued and the credit is activated. The deposit amount is often tied to the revolving credit limit that’s provided.

Interest-free periods

Most credit cards advertise an interest-free period, which varies by lender. These grace periods reflect the number of days without needing to pay interest if you clear your balance in full rather than carrying it over. This is not a new business credit card offer. 

Fees, rates and credit limits

Card fees, rates and credit terms also vary between providers and based on your specific circumstances. So, compare potential advertised interest rates and representative APR, and consider overall borrowing costs (including charges like annual fees, forex fees and costs of additional employee cards), rather than headline interest rates. 

Also, find out what credit limits are available and whether this will help cover your business’s early spending needs, or whether you need a larger injection of capital. In which case, other start-up finance options may be more suitable.

Credit checks

Most business credit card applications involve hard checks, which leave a footprint on your credit file and can temporarily reduce your rating. However, if approved, regular repayments and responsible use help improve your credit score. Limited trading history can mean lenders look at your personal and business credit record. 

Always read qualification requirements when looking at new business credit card offers and use eligibility checkers before applying to avoid wasted time and impacted scores, as checkers only require a soft search. 

Learn more about the differences between soft and hard credit searches.

Alternatives to business credit cards for start-ups

If you find it hard to get approved for business credit cards as a start-up or newer business, other finance options are available to help fund operational needs and manage cash flow.

Here are just a few start-up finance solutions to explore:

• Invoice finance: As approvals are largely based on your customers’ creditworthiness, this financing can get you fast access to funds tied up in pending invoices.

• Overdrafts: Many business bank accounts offer overdrafts to give you breathing space and a credit buffer for when cash is tight or if you’re awaiting significant payments.

• Start-up loans: The UK government's Start Up Loans scheme, facilitated by the British Business Bank, helps new businesses that struggle to get finance elsewhere to get a loan of up to £25k, to repay over 1-5 years.

• Equity finance: Many start-ups seek capital injections from external investors, whether through venture capitalists (VCs), angel investors or crowdfunding. It’s a way to jump-start growth and share certain risks (while also sharing future profits and giving up some business control).

• Revenue-based finance: This type of finance offers merchants access to working capital that’s repaid as a percentage of future card sales. But there’s often a minimum turnover threshold.

You can also consider applying for personal credit cards as an early-stage option. Just make sure you separate business-related purchases from personal expenditure when accounting and recording expenses for tax returns.  

Choosing the right card for your business

While Funding Circle offers credit solutions for small businesses, our Cashback business credit card is only available to UK limited companies and LLPs trading for at least 12 months. However, if you're a new business that’s close to reaching that point, consider our card’s excellent features and benefits, such as:

• 2% cashback for the first 6 months up to £2,000, then 1% uncapped thereafter

• Up to 42 days interest-free credit (a grace period for balances cleared in full)

• No annual fees, FX fees or hidden costs to pay

• Unlimited free company cards

• Credit limits of up to £250,000

• Interest rates from 14.9% per year, representative 34.9% APR (variable)*

We have a handy eligibility checker so you can see if you qualify and what level of credit you may be able to get. This uses a soft search, meaning there’s no impact on your credit score. If eligible, you can apply online in minutes and get a near-instant decision.

*Figures/features correct as of 14 October 2026. If approved, you may need to provide a personal guarantee before funds are released.

Disclaimer

14/10/26 – 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.