Business Credit Cards

Can any business apply for a business credit card?

As with personal credit cards; all issuers will have their own specific eligibility criteria – For instance, some issuers will only consider limited companies, whilst others will consider sole traders. Some issuers may require businesses to have a certain annual turnover, or proof that they have been trading for a minimum amount of time. Equally (again, like personal credit cards) business credit cards offer different features and benefits which will appeal to different types of businesses with differing needs. It is always worthwhile doing some research to find the right card for your business.

Do business credit cards incur an annual fee?

Many business credit cards do incur a fee, but some don’t – compare cards thoroughly to understand whether you can access the benefits you want for less.

Can my credit score affect the business credit card application?

Some business credit card providers may check a personal credit score which might affect the outcome of any applications. However, a good business score tends to get better interest rates or benefits.

Why do businesses get a credit card?

This will depend on the type of business, but most of the business credit cards have some of these similar benefits:

• A high spending limit and in some cases, no limit at all. This can boost the purchasing ability of the company.
• Employee benefits including free worldwide travel and medical insurance, hotel discounts, upgrades and concierge services.
• Simplified expense tracking - Some even offer online portals where spending can be accessed immediately. They can also negate the need for ‘petty cash’ within some companies.
• Supplementary credit cards to employees, allowing the employer to set spending limits on the additional cards.
• Discount and reward schemes entitling companies to receive discounts on things like office supplies or flights and may for instance earn Airmile reward points.
• Fraud protection and even Cardholder Misuse Insurance to protect the business in case some employees misuse their credit cards.

What is the best business credit card to have?

When looking for a Business credit card it is important to compare different products to find the right one for your business. If your business regularly spends a lot on the card but clears its balance each month, maybe a charge card, a rewards card or a cashback card would be more beneficial to the company.