What to put on your business credit card (and what to avoid)

When you're running a company, it's tempting to reach for your business credit card for every expense that crops up. But while business credit cards can be incredibly convenient for managing cash flow and earning rewards, not all purchases are created equal. Knowing what to put on your business credit card – and what to avoid – can help you make the most out of the benefits while minimising costs and complications.

Smart purchases for your business credit card

The best way to get the most out of your business credit card is by using it for the right things – the types of purchases where it can really pay off.

Everyday business expenses 

Your business credit card is perfect for regular operational costs like office supplies, software subscriptions and utility bills. These predictable expenses are easy to budget for and help build a consistent spending pattern that demonstrates responsible credit use.

Business travel and entertainment

From flights and hotels to client dinners and team lunches, travel and entertainment expenses usually fit the bill for business credit cards. Many cards offer enhanced rewards for these types of categories, and keeping business hospitality separate from personal spending makes accounting much simpler when it’s time to submit your tax returns.

Professional service

Whether it's accounting fees or marketing services, professional expenses have a place on your business card. They’re clearly business-related costs, which makes them straightforward to categorise and claim as business expenses.

Equipment and inventory purchases

Larger purchases like office equipment and stock can benefit from being purchased on a business credit card. Plus, spreading these costs over time can help manage cash flow, especially if you're taking advantage of an interest-free period.

Emergency expenses

When unexpected costs crop up, like equipment breaking down and the need to cover an urgent supplier payment, your business credit card can provide  immediate access to funds while you sort out longer-term financing if needed.

What to avoid putting on your business credit card

Business credit cards can be a convenient option for handling day-to-day spending, but not every purchase is a good fit. To avoid some headaches, it’s best to skip these types of expenses.

Personal expenses

It might seem obvious, but you’d be surprised how easy it is for personal and business expenses to mix, especially if you work from home. Keep personal purchases strictly separate to avoid complications with your accounts and potential issues with HMRC.

Cash advances

While most business credit cards allow cash withdrawals, they typically come with high fees and interest charges that apply immediately. You don’t get the same grace periods as you do with purchases. If you need cash for your business, consider a business loan or overdraft facility instead.

Large one-off purchases without a repayment plan

While credit cards offer flexibility, using them for major investments without a clear repayment strategy can lead to expensive interest charges. For significant capital expenditures, consider dedicated business loans or asset finance options.

Purchases from high-risk merchants

Some merchants are classified as high-risk by card companies, which can lead to additional fees or complications. These might include certain online services or overseas suppliers with unclear return policies.

Making your business credit card work harder

Staying on top of your business credit card starts with keeping good records. Track your spending so it’s easy to manage expenses and claim what you’re owed when filing your tax return. Most cards now include handy categorisation tools that automatically sort your purchases, cutting down on admin and giving you a clear picture of where your money’s going.

Many business cards give you up to 42 days of interest-free credit, which can be a real lifeline while you’re waiting on customer payments. That extra window can help smooth cash flow during seasonal dips or when clients take their time to pay. The timing of your spending also makes a difference. 

And don’t forget about rewards or cashback. Focus your spending on the categories that earn the most back, and try to put all eligible business expenses on the card instead of mixing payment methods. Not only does that boost your rewards, it also makes it easier to manage your finances by keeping spending in one place.

Earn while you spend with the right business credit card

If you're looking to maximise the benefits of business credit card spending, consider the Funding Circle Cashback business credit card. With 2% cashback on all business spending for the first six months (up to £2,000), followed by 1% uncapped cashback, it's designed to reward the everyday expenses that keep your business running.

The card offers up to 42 days interest-free credit with no monthly fees, giving you extra flexibility to manage cash flow while earning money back on everything from office supplies to client entertainment. Whether you're covering business travel costs, professional services or unexpected expenses, you'll earn cashback on purchases anywhere Visa is accepted and can turn necessary business spending into a revenue stream for your company.

Make every transaction count

Using a business credit card wisely can help smooth cash flow while cutting down on admin and earning rewards. Keep your spending focused on genuine business costs and avoid mixing in personal purchases. Pay on time and treat it responsibility so your business credit card acts as a practical asset that supports the way you manage your finances.

15/10/25 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.