Lloyds Business Credit Card: Features, Fees & Alternatives

Lloyds Bank offers business credit cards to help UK businesses manage cash flow and spread costs more effectively. If you are considering a Lloyds business credit card, this guide outlines everything you need to know, including key features, fees, eligibility criteria, and how these cards compare with alternative funding options.

Lloyds business credit card: who can apply?

Lloyds Bank offers two main business card products: the Business Credit Card and the Business Charge Card.

To apply for either card, you need to be:

• An existing Lloyds Bank Business Current Account holder
• A sole trader, partner, or company director with authority to borrow on behalf of your business
• Aged 18 or older
• Using the card for business purposes only

A personal guarantee may be required for Limited Companies and Limited Liability Partnerships. Lloyds will carry out credit checks on both you and your business, and all lending is subject to status.

The key difference between the two products is repayment flexibility. The Business Credit Card allows you to spread costs over time with minimum monthly payments, while the Business Charge Card requires you to pay the full balance monthly by Direct Debit from your Lloyds Business Current Account.

Features and benefits of the Lloyds business credit card

Credit limits and borrowing

The Lloyds Business Credit Card offers credit limits from £1,000 to £25,000, subject to status. You can withdraw up to £500 in cash daily, though cash withdrawals incur fees and don't benefit from interest-free periods.

Interest-free periods

Access up to 56 days interest-free credit on purchases if you pay your balance in full and on time each month. Cash withdrawals don't qualify,  interest applies from the transaction date.

Cashback rewards

Lloyds offers tiered cashback: 1% on fuel and EV charging, 0.5% on other purchases. You need to spend at least £2,000 monthly across all cards to earn cashback, which is credited monthly.

Merchant rebates through Business Savings by Mastercard are automatically credited to your account.

Purchase protection

Cards include chargeback protection, free business travel insurance when you book trips with your card, and Buyers Protection Insurance covering purchases up to £2,500 for 90 days.

Business Charge Card option

The Business Charge Card offers up to 42 days interest-free credit on purchases with full monthly balance payment by Direct Debit required.

Fees, limits and repayment information

Minimum repayment

You must pay at least the minimum payment each month, which is the higher of:

• £5, or
• The total of: any interest charged, any default charges, 1/12th of annual fees, plus 1% of your statement balance

If your outstanding balance is less than £5, you must pay the full amount.

Making only minimum payments means it will take longer and cost more to clear your balance, as interest continues to accrue on the remaining amount.

How to apply for a Lloyds business credit card

Existing Lloyds Business Current Account holders can log in to Online for Business to check eligibility and apply digitally.

Non-customers must open a Business Current Account first. New account customers can apply for up to £5,000 across a Business Overdraft or Business Credit Card, subject to separate assessment.

Is it easy to manage your card online?

Lloyds provides online management through Online for Business where you can view statements, track expenses, order replacement cards, manage PINs, and oversee multiple employee cards in one place.

How does Lloyds business credit card compare to alternatives?

Interest rates and costs

Lloyds' 15.95% representative APR is standard for business credit cards from major UK banks. Funding Circle's business credit card offers 2% cashback for the first 6 months (up to £2,000 spend), then 1% uncapped with no minimum spend threshold.

Cashback structure

Lloyds requires £2,000 minimum monthly spend to earn cashback - spend £1,900 and you receive nothing. Funding Circle's card has no minimum spend requirement, earning cashback on every transaction from £1 upwards.

Account requirements

Lloyds requires an existing Lloyds Business Current Account. Funding Circle's card doesn't require switching your business banking.

Credit limits and larger funding

Lloyds offers up to £25,000 across cards. For businesses needing more substantial funding, Funding Circle provides small business loans from £10,000 to £750,000 with terms from 6 months to 6 years.

Fees

Lloyds waives the £32 annual fee for the first 12 months and ongoing if you spend £6,000+ annually. Default charges (late payment, returned payment, exceeding limit) are £12 each.

FAQs about Lloyds business credit cards

Do you need a Lloyds account?

Yes, you must be an existing Lloyds Bank Business Current Account holder to apply for either the Business Credit Card or Business Charge Card.

What is the interest-free period?

The Business Credit Card offers up to 56 days interest-free on purchases if you pay your balance in full and on time each month. The Business Charge Card provides up to 42 days interest-free, with the requirement to pay the full balance monthly by Direct Debit.

What credit limit can you get?

Credit limits range from £1,000 to £25,000, subject to credit assessment and approval.

How quickly can you apply?

Existing Lloyds business banking customers can apply online through Online for Business. Non-customers need to open a Business Current Account first before applying for a business credit card.

Choosing the right funding for your business

Business credit cards work well for managing day-to-day expenses and earning rewards on regular spending. They're particularly useful when you can pay balances in full to avoid interest charges.

For larger investments, equipment purchases, or extended working capital needs, consider whether a business loan offers better value. With fixed repayment schedules and potentially lower overall costs, loans can be more suitable for substantial business funding needs.

Whether you choose Lloyds' business credit card or explore alternatives like Funding Circle's business credit card or business loans, understanding your options helps you make the right choice for your business. Review our guide to things to consider before applying for business funding.

Over 110,000 UK businesses have trusted Funding Circle. Our business credit card offers 2% cashback for the first 6 months, then 1% uncapped with no minimum spend. Business loans are available from £10,000 to £750,000 with transparent pricing from 6.9% per year.

Ready to explore your options?

04/05/26: 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.