Options for no annual fee business credit cards UK

Several UK providers offer business credit cards with no annual fee, and the right one depends on spending pattern and team size rather than on which fee is lowest.

Funding Circle offers its own no annual fee business credit card, included in this comparison alongside other providers. Every figure has been checked against each provider's own site, and this guide isn't sponsored or otherwise influenced by any card issuer. This guide is for informational purposes only.

We cover six no annual fee UK business credit cards, what purpose each one suits, a comparison table, what a £0 annual fee doesn't cover and how to choose between them.

Why use a no annual fee business credit card

Credit cards are the most widely used form of external finance among UK smaller businesses. According to British Business Bank, 19% of smaller businesses used credit cards in Q3 2025, ahead of bank overdrafts at 16% and leasing or hire purchase at 13%. 

A business credit card can offer several practical benefits without adding a recurring cost:

1. Short-term flexibility when paying expenses before incoming payments arrive

2. An interest-free period when you pay the balance in full

3. Easier separation and tracking of business spending

4. Cashback on everyday purchases, depending on the card

5. No annual fee reducing the value of any rewards you earn

Together, these benefits can make everyday business spending more flexible and cost-effective.

The cards

Six business credit cards are listed alphabetically, not ranked, since the best choice depends on your particular business circumstances and needs.

Barclaycard Select Cashback Business Credit Card: for high-street banking without switching current accounts

The Barclaycard Select Cashback card is a business credit card from a major UK bank, offering cashback with no annual fee:

• No annual fee

• 1% uncapped cashback on spend of £2,000 or more in a statement month

• Up to 56 days interest free on purchases repaid in full

• Representative APR of 25.5% (variable), based on an assumed credit limit of £1,200

Eligibility asks for a UK based business with turnover, or projected turnover for new businesses, of £10,000 to £6.5 million a year, and there's no requirement to hold a Barclays current account. Additional cardholders are free, with spending limits managed through Barclaycard's MyControls tool.

Cashback isn't paid in months where spend falls below the £2,000 threshold, and a 2.99% non-sterling transaction fee applies to overseas purchases, on the higher side of the market, though cardholders do get access to an ongoing Business Rewards programme offering discounts with select partners. 

This suits businesses with consistent, mostly UK based spend rather than those trading heavily overseas.

Capital on Tap Business Credit Card: for unlimited free employee cards

The Capital on Tap Business Credit Card is built around uncapped cashback with no annual fee:

• No annual fee (on the standard card)

• 1% uncapped cashback on all eligible spend, with no monthly threshold to hit

• Up to 42 days interest free on purchases repaid in full

• Rates from 13.86% APR (variable)

Eligibility requires an active director or majority shareholder (25% or more) of a UK limited company or LLP, with annual turnover of at least £24,000 and no unsatisfied CCJs in the past 12 months.

Employee and virtual cards are free and unlimited, credit limits go up to £250,000 with funds preloadable onto the card, and cashback points can be redeemed as cash, gift cards, or converted to Avios or Virgin Points. 

A separate Pro tier with a higher cashback rate and travel perks carries its own £299 annual fee, and sole traders aren't currently eligible for either tier, so this suits incorporated businesses with a team to issue cards to rather than solo operators.

Funding Circle Cashback business credit card: for straightforward cashback

The Funding Circle Cashback business credit card pays cashback that steps down after an initial period:

• No annual fee or foreign transaction fees

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

• Up to 42 days interest free

• Representative APR of 34.9% (variable), with rates from 14.9% a year

To be eligible, a business needs to be a UK limited company with at least 1 year of trading history and annual turnover of £30,000 or more. Checking eligibility uses a soft search that doesn't affect the business's credit score, and takes around 30 seconds online before a full application and decision.

Company cards for employees are free and unlimited, each with its own individually set spend limit, and credit limits go up to £250,000. 

The card isn't currently available to businesses that already hold Funding Circle FlexiPay or another Funding Circle loan, and cash withdrawals aren't supported, so it suits businesses using it for day to day purchases rather than cash needs.

iwoca Credit Card: for businesses with limited trading history

The iwoca Credit Card charges no fees at all beyond interest on any carried balance:

• No annual, foreign transaction or late payment fee

• 1% cashback applied automatically to the account

• Up to 42 days interest free

• Interest from 14.99% a year, representative APR 35.40% (variable)

Eligibility is open to businesses of any age, with no stated minimum trading history, unlike most other providers on this list, though a personal guarantee is required. Checking eligibility uses a soft search that doesn't affect the business's or the applicant's personal credit score.

Credit limits go up to £250,000, and the app gives real time spending information. As a newer entrant to the market, it has a shorter track record than some competitors, and if the business falls behind on repayments this may affect the guarantor's personal credit score. 

Unlike some challenger card providers, it doesn't require an existing business current account, so it can sit alongside banking held elsewhere.

Metro Bank Business Credit Card: for simple, flat rate pricing with branch support

The Metro Bank Business Credit Card uses a single flat rate rather than tiered pricing:

• No annual fee

• Single flat representative APR of 18.9% (variable) on all purchases

• Up to 56 days interest free

• Minimum credit limit £500, with higher limits based on status

Eligibility is open to UK based sole traders, partnerships and limited companies, but is restricted to existing Metro Bank Business or Commercial Current Account holders.

Purchases and cash withdrawals in most European countries carry no transaction fee, though a 2.99% non-sterling fee plus a £1.50 cash fee apply outside that zone. Find out more here.

This card is an extension of an existing Metro Bank banking relationship rather than a standalone product. It suits businesses that already bank there, or are willing to switch, and that value branch access and one simple rate over a tiered rewards structure.

American Express Basic Business Card: a no-fee card without revolving credit

The Basic Business Card from American Express is a charge card rather than a revolving credit line, aimed at businesses that pay in full each month:

• No annual card fee

• No pre-set spending limit

• Up to 42 days' payment period on purchases

• Balance must be paid in full each month, so there's no interest to carry

The card is available to UK businesses, but it isn't presented as a standard online application for new Amex customers. American Express currently directs applicants to apply by calling “the number on the back of your Card”, although they also provide a 24/7 customer service phone number, 0800 917 8043.

This means that, if you don't already hold an eligible Amex Card, you should contact American Express to confirm whether you can become eligible for the Basic Business Card and what route they require.

The card runs on the Amex network, which has narrower UK acceptance than Visa or Mastercard, and includes 24/7 global customer service and Emergency Card Replacement.

This suits businesses that already pay their balance in full each month, aren’t looking for revolving credit or cashback and want Amex's network and support without paying for rewards they won't use.

No annual fee business credit card comparison table

Card	Annual fee	Cashback or rewards	Additional cardholders	Eligibility
Barclaycard Select Cashback	None	1% uncapped, on months with £2,000+ spend	Free, admin-controlled limits	UK business, turnover £10,000 to £6.5 million
Capital on Tap	None (standard card)	1% uncapped	Free, unlimited	UK Ltd or LLP, active director or 25%+ shareholder, minimum £24,000 annual turnover
Funding Circle Cashback	None	2% for first 6 months (up to £2,000), then 1% uncapped	Free, unlimited	UK limited company, 1+ year trading, £30,000+ turnover
iwoca Credit Card	None	1% automatic cashback	Not currently offered	UK registered business, no minimum trading history stated
Metro Bank	None	None	Free, up to 9 cardholders	Requires existing Metro Bank business current account
American Express Basic Business Card	None	None	Not specified	UK business. Eligibility and application route is by contacting Amex rather than through a standard online application

 

What no annual fee does and does not cover

A £0 annual fee only removes one line item. 

Other charges can still apply:

• Interest on any balance carried past the interest free period

• Foreign transaction fees on overseas spend, charged by several providers on this list

• Late payment fees if a payment is missed

• Cash withdrawal charges

• Fees for additional cardholders on some cards, even when the core card itself is free

For a full breakdown of what these charges typically look like and how to compare them, see our guide to business credit card rates, fees and charges.

How to choose

The right no annual fee card depends more on how your business spends than on the headline features.

A small, steady team with modest monthly spend might prioritise unlimited free employee cards over a higher cashback rate. One with irregular spending that dips below a monthly threshold should avoid cards where cashback depends on hitting that figure.

A few questions are worth working through before choosing:

• How many employees need their own card, and whether the provider charges for additional cardholders

• How consistent monthly spend is, since some cashback only kicks in above a set threshold

• How much of that spend happens overseas, given foreign transaction fees vary widely

• Whether a card with an annual fee might still pay for itself through a higher rewards rate or better foreign exchange terms

A card with an annual fee can still work out cheaper overall if its rewards rate, FX terms or travel perks suit how a business spends. These no annual fee cards are intended as a useful starting point, but the right choice will depend on your business’s needs.

The Funding Circle Cashback business credit card

Funding Circle's Cashback business credit card has no annual or monthly fee and no foreign exchange fees on international spend. Cardholders earn 2% cashback for the first six months, up to £2,000, followed by 1% uncapped cashback on all spend. Cashback is automatically credited when you make a payment towards your statement.

The card offers up to 42 days' interest-free credit when you pay your balance in full. You can also issue unlimited additional Company cards for employees, with individual spending limits, at no extra cost. There's no need to switch your business banking to apply.

Here’s how to apply, in a few steps:

1. Apply online

2. Get an instant decision

3. Start using your digital card once approved

4. Receive your physical card in 3–5 working days

To be eligible, your business needs to meet the following criteria:

• Be a UK incorporated limited company

• Have at least 1 year of trading history

• Have annual turnover of £30,000 or more

The card isn't currently available to businesses already holding Funding Circle FlexiPay or another Funding Circle loan. Credit limits go up to £250,000, subject to a full assessment. Full details are on the Funding Circle Cashback business credit card page.

Approval, credit limit and rate depend on a full assessment.

Representative example: representative APR 34.9% (variable), with rates from 14.9% a year.

This isn't financial or legal advice, so speak to a professional adviser if unsure whether this card is the right fit.

FAQs

Which UK business credit cards have no annual fee?

Funding Circle, Capital on Tap, iwoca, Barclaycard Select Cashback, Metro Bank and American Express all offer a business credit card with no annual fee. Cashback, employee cards and other features and benefits, and eligibility, vary between them.

Is a no annual fee business credit card actually free?

Not entirely. Interest still applies to any balance carried beyond the interest free period and charges such as foreign transaction, cash withdrawal and late payment fees can still apply even with no fee for holding the card.

Do you pay a fee for additional cardholders?

It depends on the provider. Some, including Funding Circle and Capital on Tap, offer additional company cards at no extra cost, while fees and limits vary between providers.

What happens when a first-year fee waiver ends?

Some business credit cards are free for the first 12 months only, after which the standard annual fee applies. This is different from a card with no annual fee, so check whether the offer is permanent or introductory before applying.

Is it worth paying an annual fee on a business credit card?

It can be, if the card's rewards, credit limit or other benefits outweigh the cost of the fee for your business. If you don't expect to use those benefits enough to offset the fee, a no annual fee card may be more cost-effective.

Disclaimer

04/09/26 – 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.