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Benefits of business credit cards – discovering a smarter way to pay

Let’s explore how business credit cards and charge cards can be used to improve your cashflow, streamline business management, add security to your finances and support business growth. Keep reading for the answers to some of our frequently asked questions.

Small business credit card at restaurant

What are business credit cards?

Business credit cards are specifically designed to make business purchases, with a generally higher credit limit than their personal counterparts. Available to companies of any size, business credit cards often come with rewards that are tailored to business specific needs.

Business credit cards allow for any debt on the card to be carried for an extended period, typically longer than a month, so long as the minimum payments are made to the provider. This can make business credit cards an effective solution for smoother cashflow, as they allow the cost of larger purchases to be spread over several months. 

5 benefits of business credit cards

1. Supporting with your cashflow.

Business credit cards offer interest-free credit periods allowing you to make payments with the added confidence of knowing interest won’t be charged until the end of the period. A business credit card can be a powerful tool to support your cashflow, allowing you to make investments in your business today, which you can pay off in line with your business growth.

With card options that charge no annual fees, or that offer money-saving benefits like travel insurance and lower foreign exchange fees, there are several ways to streamline your cashflow in a way that suits you.

2. Separate your personal and business banking

As well as equipping you to build a business credit history, keeping your business expenses on a separate card allows for simpler accounting. Some providers, including ourselves, may even offer free accounting tools to help you manage your time, expenses, and invoices. 

With a business credit card, you can also provide your employees with cards - often at no added cost.

3. Security on spending

Security measures are often included with business credit cards, empowering you to safeguard your business finances. These safety features may include cardholder misuse insurances which protects against the fraudulent use of cards, and purchase protection – refunding or replacing any damaged or stolen items bought using your business card.

4. Seize opportunities for cashback and rewards

From access to exclusive discounts from leading retailers and suppliers, to chances for cashback reimbursement on purchases made using your card, business credit cards offer a rewarding way to pay

5. Simplify your expense management and reporting

With 24/7 ability to view your balance, statements and transactions from an app, as well using both digital and telephony servicing, keeping track of your spending is easy. While access to accounting software allows you to view business reports and manage your finances all in one place.

Business credit cards vs charge cards

The key difference between business credit cards and charge cards is the way you repay your spending on them. Whilst the spending on your charge card must be paid back in full each month, your credit card allows you to pay this balance monthly in a way that suits your business needs. No interest will be charged if the balance is paid in full within the interest-free period. 

Business credit cards are also distinct from charge cards in several other ways:

  • Business credit cards generally come with higher annual fees than charge cards. Although it’s worth noting that these fees are often paid off by the benefits they offer. It is also possible to find credit cards that charge no annual fees at all.
  • While both business credit cards and charge cards have limits, the limits on a charge card are typically higher. 
  • Whereas you are expected to pay your charge card back in full each month, you can pay back the balance on your credit card in variable increments. 
Contactless payment with business credit card

Small business credit card FAQs

How do you pass a business credit card eligibility check?

Any UK resident with a registered business is eligible to apply for a business credit card in the UK. The success of your application is subject to a credit check, which may take your personal credit score into account. 

Is a small business credit card different to a corporate credit card?

Yes, whereas a corporate credit card is only available to corporations, a small business credit card is more easily accessible with a personal guarantee. While the corporation is liable for a corporate credit card, the owner of a smaller business often takes this role. 

Will I have credit card fraud protection?

With cardholder misuse insurances and the ability to freeze your business credit card immediately on an app, you can stay protected from fraud, no matter your business size. 

You are also legally protected under Section 75 of the 1974 Consumer Credit Act, which holds your provider equally liable for any lost or stolen goods. You can rest in the knowledge of reimbursement from either the retailer or your credit card company.

Explore a rewarding way to pay

Explore a rewarding way to pay

Not currently using a business credit card, or looking to upgrade? At Barclaycard we’ve made it simple to find a card fit for your business. With options including an interest-free credit period, purchase protection, and cashback uncapped on all your business spending.