Top business credit cards for UK SMEs revealed

According to a report by Grenke, over half of the UK’s SMEs are reliant on credit cards to support their business daily. 

According to a report by Grenke, over half of the UK’s SMEs are reliant on credit cards to support their business daily.

There are plenty of financial products available that cater to small business owners and their specific needs, with business credit cards being one of the most popular choices.

It can be difficult to know where to start when choosing a business credit card provider and a specific card.

To help, the money.co.uk business credit cards team have analysed the data to reveal the top business card offerings and shared their expert tips on choosing the right financial support for your business.

Business credit card offerings of the most popular providers:

Business Credit Card

Finder Customer Satisfaction Score /5

Annual Fees

Do They Offer a Welcome Bonus?

Welcome Bonus

Representative APR

British Airways American Express® Accelerating Business Card

4.0

£250

Y

30,000 bonus Avios when you spend £5,000 in the first three months of card membership

108.4%

Capital on Tap Business Credit Card

4.0

£0

N

35.2%

Lloyds Bank Business Credit Card*

3.5

£32

Y

No annual fee for the first 12 months

22.4%

HSBC Commercial Credit Card Visa

4.0

£32

Y

No annual fee for the first 12 months

22.0%

Bank of Scotland Business Credit Card Mastercard

4.0

£32

Y

No annual fee for the first 12 months

22.4%

Royal Bank of Scotland Business Credit Card*

4.0

£30

Y

No annual fee for the first 12 months

24.3%

AIB Visa Business Gold Card

3.5

£50

N

12.8%

Santander Business Cashback Credit Card

4.0

£30

N

23.7%

NatWest Business Credit Card*

4.0

£30

Y

No annual fee for the first 12 months

24.3%

  1. British Airways American Express® Accelerating Business Card

The British Airways American Express® Accelerating Business Card has the highest annual fees on the list, costing £250 a year. It also has the highest representative APR, with 108.4%. If you spend £5,000 using the card in the first three months, you’ll be rewarded with 30,000 Avios bonus points. When booking through British Airways, these points can be used to pay for flights, accommodation, or car hire.

  1. Capital on Tap Business Credit Card

Despite not offering an explicit welcome bonus, Capital on Tap’s Business Credit Card doesn’t charge an annual fee, unlike other business credit cards. However, it does require a minimum turnover of £24,000 per year, which is something to consider depending on your business financials before applying. The card also has a representative APR of 35.2% and a customer satisfaction score of 4 out of 5.

  1. Lloyds Bank Business Credit Card

The Lloyds Bank Business Credit Card offers a welcome bonus of no annual fee for the first 12 months. After this time, the card will cost £32 a year and an additional £32 for each card issued. The card has a customer satisfaction score of 3.5 out of 5 and offers a representative APR of 22.4%.

Kyle Eaton, money.co.uk business credit cards expert, shares his tips on choosing the right financial products for your business:

“Every business needs cash to get off the ground and pay the bills, from establishing a workplace to buying essential equipment. With so many options to consider, choosing the right financial products can be a difficult decision. With this in mind, here are some tips to help you make the best choice for your business:

  1. Assess your business needs

“Before you start looking for the right product, make sure you fully understand your business’s finances. Start by looking at your current financial situation, including:

  • Cash flow

  • Growth projections

  • Upcoming expenses

  • Debts

  • Assets

  1. Know your goals

“It’s important to identify what you want to achieve with any financial products you’re considering. Consult your business plan, or write one up if you haven’t already done so. This should include financial forecasts so you know how you’ll use the product. Knowing your goals will help you narrow down the options for choosing the right product for your business.

  1. Do your research

“Plenty of financial products are available and research is key to understanding which is right for you. Look into each option thoroughly to get to grips with:

  • Reward programmes

  • Fees

  • Interest rates

  • Customer reviews

  • Eligibility criteria

  1. Seek professional advice

“If you’re unsure about choosing the right financial product, ask an expert for advice. Financial advisors and accountants have the expertise and experience to help you understand the complex world of business finance. They can assess how healthy your business finances are and what your needs are. They’ll then be able to give you personalised guidance, taking into account your:

  • Industry

  • Business size

  • Cash flow

  • Risk tolerance

  1. Read the fine print

“Before you commit to a financial product, make sure you take the time to read and understand the terms and conditions outlined by the provider.  Look for any restrictions or clauses that could potentially be pitfalls for your business in the future. Pay attention to the repayment terms, including frequency of payments and grace period for repayments, and any limitations or restrictions on how the product can be used.

“Finding the right financial product for your business means carefully considering many different factors. By looking through these factors and getting professional guidance when you need it, you can make the process easier. This means you can choose the financial product that best suits your business’s needs.”

About Neel Achary 19687 Articles
Neel Achary is the editor of Business News This Week. He has been covering all the business stories, economy, and corporate stories.