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Updated: 29 July 2025
Finding the right credit card for your business can feel a bit like striking gold. Maybe you’ve been carrying the same business card around for years, watching as the edges fray slightly while your business has completely changed. Or perhaps you’re juggling multiple cards with fees that seem to multiply faster than your rewards points. Either way, there comes an all-important moment when it’s worth asking: is it time for a change?
Businesses typically change credit cards when their current offering no longer aligns with the company’s evolving needs. As your business grows, you may find that it requires higher credit limits to accommodate increased spending on things like inventory and equipment.
Or perhaps changing spending patterns mean a card’s rewards structure no longer delivers meaningful value. Say your business model becomes more local. In this scenario, travel points might lose their appeal, or maybe competitors offer better cashback deals.
Financial circumstances can also drive businesses to reconsider their cards, perhaps aiming for lower interest rates or more flexible repayment terms. Sometimes it’s just about finding a better deal when new cards come onto the market and offer features like improved expense tracking, smoother accounting software integration or more efficient employee card management. These are all practical benefits that can help streamline daily operations.
That business credit card you signed up for a few years back might have been perfect then, but businesses rarely stand still. As your company evolves, so will your financial needs.
Here are some telltale signs it’s time to consider a switch:
Remember when that £5,000 limit seemed plenty? If you’re now regularly hitting your credit ceiling or having to split purchases across multiple cards, it’s a clear sign you’ve outgrown your current card.
Constraints are inconvenient, but they can also hamper your business growth. When you can’t make timely purchases because you’re waiting for credit to free up, you might miss opportunities or delay projects that could drive revenue.
That travel points card made perfect sense when you were constantly visiting clients or attending trade shows. But if your business model has shifted to more local operations or online meetings, those air miles might be gathering dust while you miss out on more useful benefits.
Take a fresh look at where your money actually goes. If you’re spending heavily on digital advertising but your card only rewards office supplies and fuel, you’re essentially leaving money on the table with every transaction.
A business credit card that once seemed cost-effective might now be eating into your profits through higher fees or rising interest rates. Perhaps you accepted a higher annual fee years ago because the benefits justified it, but you’re not fully using those perks anymore.
Similarly, interest rates change over time, and the market becomes more competitive. Many businesses stick with their original cards out of habit, unaware they might qualify for significantly better rates elsewhere.
Take a moment to review what you’re actually paying – both in explicit fees and interest – and compare it against current market offerings. The savings could be substantial.
Once you’ve decided it’s time for a change, knowing what features matter most can help you find the match for your current business needs. Instead of having your head turned by flashy sign-up bonuses, consider these factors:
The most valuable business credit card rewards you where you spend most. If your largest expenses are digital advertising, software subscriptions or office supplies, look for cards that offer higher cashback or extra points in these categories. Take Funding Circle’s Cashback business credit card. It gives you 2% cashback for the first six months (up to £2,000) and then an uncapped 1% after that.
Annual fees aren’t necessarily bad, if the benefits outweigh the cost. A card with a £150 annual fee might be worth it if you’ll earn £500 in rewards based on your spending patterns. If there’s an option out there with no annual fee, however, you can benefit from a range of features without having to try and justify an annual fee. This is one area where Cashback card and FlexiPay from Funding Circle shine.
Beyond rewards, look at how a card can help manage your business cash flow. Cards offering longer interest-free periods or flexible payment options can prove invaluable. FlexiPay, for instance, lets you pay upfront by card or transfer, then gives you control over repayments. You can spread the costs over 1, 3, 6, 9 or 12 months without interest, which is replaced by a clear, flat fee per transaction.
Timing your credit card switch can maximise the benefits on offer while minimising disruption. Many business credit cards give you enhanced sign-up bonuses during the first quarter of the year, as card issuers compete for new customers who are implementing fresh financial strategies. If you’re planning a switch, monitoring offers from January through March might secure you additional rewards or longer interest-free periods.
It’s also worth thinking about your business cycle. Ideally, you’ll want to switch credit cards during a relatively quiet period when transaction volumes are lower. For retailers, this might be after the holiday rush; for seasonal businesses like landscaping or tourism, the off-season provides breathing room to adjust to new payment systems and credit limits without the pressure of peak operations.
Contrary to what might seem logical, immediately closing your old business credit card account isn’t always the best move. Credit scoring models consider the age of your accounts, and closing an established card out of nowhere could temporarily lower your business credit score. If the card doesn’t carry an annual fee, consider keeping it open with minimal usage – perhaps assigning it to a specific recurring expense – to maintain the credit history and available credit line.
If you do decide to close the account, be methodical. Start by making sure you’ve redeemed all the outstanding rewards, as those hard-earned points or cashback shouldn’t go to waste. Then, transfer any recurring charges to your new card to avoid missed payments or service interruptions if the lender provides these options. Finally, request written confirmation of the account closure for your records, so there’s no ambiguity about the status of the account.
Switching credit cards is a bit like changing the tyres on a moving car – you need to keep things running while making the swap. The last thing you want is suppliers calling because their recurring payments have bounced back or subscription services suddenly cut off. Some planning goes a long way here.
Make a list of everything connected to your old card. You know those subscriptions you signed up for years ago and barely remember? Now’s the time to hunt them down. Then there are the regular suppliers, the monthly software payments, the advertising platforms – they all need updating one by one.
Some steps to keep things smooth:
Taking care of these aspects will set you up for your new business card so you can continue making those all-important decisions that help drive the business forward.
If you’re ready to find a business card that truly fits your current needs – whether you need flexible repayment options with FlexiPay or want to earn as you spend with our Cashback business credit card – Funding Circle has options designed to work as hard as you do.
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.
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