Compare The Best Business Credit Cards For Startups
We compare the best business credit cards for startups with low or no turnover
Updated: 1st October
Recommended Business Credit Card Startups With Revenue
- Uncapped 1% cashback with no annual fees
- Rates as low as 15.22% APR (variable)
- Credit facility of up to £250,000
- Annual revenue of £20K required
- Redeem points for Avios (Business Rewards Card only)
- Up to 42 days interest free on card purchases
Business credit cards are one of the more accessible forms of finance for startups as they often have less stringent eligibility requirements than other types of business finance. However, they’re relatively expensive if they are not paid off each month and normally only a good option if they are paid off in full each month. While credit limits may be lower for startups compared to businesses with a longer trading history, they can still provide lucrative rewards, easy expense management, and interest-free periods for a minimal annual fee.
What are the Best Business Credit Cards for Bad Credit?
Card Name | Annual Fee | Rewards | APR | Eligibility | Apply | |
|---|---|---|---|---|---|---|
 | Capital on Tap Free Rewards Card | £0 | 1% cashback uncapped | Rates as low as 15.22% APR Representative APR of 36.19% (variable) | Director/shareholder ≥25% ownership UK Ltd/LLP £24k+ turnover No recent CCJs | Apply Here |
 | Capital on Tap Business Rewards Card | £99 per year | 1% cashback uncapped Avios Points | Rates as low as 15.22% APR Representative APR of 59.15% (variable) | Director/shareholder ≥25% ownership UK Ltd/LLP £24k+ turnover No recent CCJs | Apply Here |
 | American Express Business Gold Card | £195 (first year free) | 1 Reward point per £1 20,000 points on £3k spend | N/A (Charge Card) | UK Bank account Permanent UK address | Apply Here |
 | British Airways American Express Accelerating Business Card | £250 | 1.5x Avios per £1 2x BA points per £1 10,000 Avios per £20k spend | 108.4% APR (variable) 28.5% purchase rate (variable) | UK Bank account Permanent UK address | Apply Here |
 | Barclaycard Select Business Cashback | £0 | 1% cashback uncapped Free access to FreshBooks | Representative APR of 27.5% | £10k+ turnover Good financial history No recent rejections | Apply Here |
 | Metro Bank Business Credit Card | £0 | None | 18.90% APR | Metro Bank business account | Apply Here |
Card Name | Annual Fee | Rewards | APR | APR | Apply |
|---|---|---|---|---|---|
Capital on Tap Free Rewards Card | £0 | 1% cashback uncapped | Rates as low as 15.22% APR Representative APR of 36.19% (variable) | Director/shareholder ≥25% ownership UK Ltd/LLP £24k+ turnover No recent CCJs | Apply Here |
Capital on Tap Business Rewards Card | £99 per year | 1% cashback uncapped Avios Points | Rates as low as 15.22% APR Representative APR of 59.15% (variable) | Director/shareholder ≥25% ownership UK Ltd/LLP £24k+ turnover No recent CCJs | Apply Here |
American Express Business Gold Card | £195 (first year free) | 1 Reward point per £1 20,000 points on £3k spend | N/A (Charge Card) | UK Bank account Permanent UK address | Apply Here |
British Airways American Express Accelerating Business Card | £250 | 1.5x Avios per £1 2x BA points per £1 10,000 Avios per £20k spend | 108.4% APR (variable) 28.5% purchase rate (variable) | UK Bank account Permanent UK address | Apply Here |
Barclaycard Select Business Cashback | £0 | 1% cashback uncapped Free access to FreshBooks | Representative APR of 27.5% | £10k+ turnover Good financial history No recent rejections | Apply Here |
Metro Bank Business Credit Card | £0 | None | 18.90% APR | Metro Bank business account | Apply Here |
Best Business Credit Card for Startups Generating Revenue: Capital on Tap Free Rewards Card
- Annual Fee: £0
- Cashback: Uncapped 1%
- Intro Bonus: None
- Interest-free period: Up to 42 days
- Credit Limit: Up to £250,000
- APR: As low as 15.5% (variable); representative 36.19% APR (variable)
- Eligibility:
- Be a director or shareholder with over 25% ownership
- UK-based Ltd/LLP (not available to sole traders)
- £24k+ annual turnover
- No recent CCJs
With no annual fee and a high potential credit limit, Capital on Tap’s Free Rewards Card is ideal for startups that are already trading (there is a minimum annual turnover of £24,000).
This Free Rewards card has a simple, flat 1% cashback for all purchases and a potentially low APR. There are no FX or ATM fees, customer support is excellent, and employee cards are free and easily managed. Startups that are still figuring out their workflow and tech stack can also benefit from the discounted SaaS services offered.
Best Business Credit Card For Startups With Low Turnover: Barclays Select Business Cash Back
- Annual Fee: £0
- Cashback: Uncapped 1%
- Intro Bonus: None
- Interest-free period: 56 days
- Credit Limit: Subject to credit check and business finances
- APR: Representative 27.5% APR (variable)
- Eligibility:
- £10k+ annual turnover
- Good finances over the past year
- No recent Barclays Card rejections in the past six months
The Barclays Select Business Cash Back card is another great option for startups with low turnover (their minimum annual turnover is only £10,000). It’s a free card with low eligibility criteria and the 27.5% (variable) representative APR is relatively competitive compared to other cards although we’d not recommend any of these cards unless you can pay off the balance in full each month avoid the interest charges.
With 1% uncapped cashback, favourable credit terms, and a FreshBooks accounting plan, it’s a highly competitive card despite the high FX fees and longer onboarding process. If you need the 56 days of free interest and have been trading for over one year, this is a great option.
Best Startup Business Charge Card for Rewards: American Express Gold Card
- Annual Fee: £195 (first year free)
- Cashback: None
- Intro Bonus:
- £0 annual fee for the first year
- 20K Membership Reward Points when you spend £3,000 in the first 3 months.
- Interest-free period: 54 days
- Credit Limit: Subject to credit check
- APR: N/A, this is a chargecard
- Eligibility:
- UK Bank account
- Permanent UK address
- No welcome bonus if you’ve recently used Membership Rewards on another card
The Amex Business Gold card is a fantastic option for startups that have high monthly expenses that they can earn rewards on (see more on our recommended business credit cards with rewards here). The first year has no annual fee so it is possible to collect the rewards on your business expenses before cancelling the card before the £195 annual fee kicks in.
When expecting high amounts of spending, it’s possible to earn 1 point per £1 spent, a possible 20K points bonus, as well as a referral scheme and access to global travel insurance. However, the card becomes expensive after the first year and the balance must be cleared by the end of every month. The card is ideal for day-one startups, or even sole traders, provided they’re frequent travellers and/or high spenders.
What are the main eligibility criteria for business credit cards?
Almost all business credit cards will require you to be a UK resident and have a UK-registered business. Most will also require at least a moderate credit score (if you have poor credit score see list of business credit cards for companies or directors with a bad credit history) .
Some card providers accept sole traders, while others require you to be the director or owner of a limited company. Less than half of the lenders require a minimum turnover, but many high street banks want you to have an existing current account with them. Finally, recent County Court Judgements can be an issue for some providers.
Advantages and disadvantages of using a credit card in a startup business
Pros
- Improve cashflow: Business credit cards provide immediate access to funds and interest-free periods which can address the cashflow issues most startups face.
- Rewards: Startups often incur lots of early spending to get off the ground. Credit cards offer a way to earn cashback or points on business purchases.
- Introductory offers: Introductory offers can be very useful for startups. They disproportionately benefit from a waived first year fee or bonus points.
- Access to discounts: Many business credit cards offer exclusive discounts to services like Slack or accounting software. These are particularly useful for startups who have a flexible workflow and no legacy systems.
- Expense tracking: Founders want to maximise their time spent on operations and minimise administration. Business credit cards allow for simplified bookkeeping which frees up time and improves accounting accuracy. They also typically integrate seamlessly with accounting software.
- Building business credit: Startups may lack a credit history, so a credit card can be perfect for building up a better credit profile to secure bigger and cheaper financing in the future.
- Employee spending: Some providers offer limited employee cards (i.e., 20), which is less of a concern for small startups. Limits can be placed on employee spending and with real-time tracking and freezing.
- Accessibility: Business credit cards may not accept applicants with very poor credit, but they typically have a higher acceptance rate than bank loans, which typically require a business plan and a strong credit profile.
Cons
- High interest rates: If balances aren’t cleared before the interest-free period, credit cards typically have a high APR (e.g. 36%) compared to other financing options, like a bank loan (e.g. 10%).
- Risk of overspending: Credit cards make it easy to overspend unlike a fixed loan. It can be easy to fall into a debt trap.
- Fees and charges: Although some providers have low fees, many come with annual fees, high currency conversion fees, late payment fees, and sometimes even ATM fees.
- Personal liability: A personal guarantee is required for some business credit cards so if the business fails the make the minimum monthly payments, the cardholder (often the business owner) is personally responsible.
- Credit score: Credit cards are only useful for credit building if you’re very careful. If not, you may see your credit score fall due to having a high credit utilisation ratio or a late payment. Many card holders aren’t aware of all the ways credit score can be impacted. Plus, application rejection may also appear on your credit history.
Ultimately, credit cards are a highly useful financial tool when used in a very controlled way. Rewards, streamlined accounting and useful features can be accessed for next to no cost when used right. They carry risks, though, meaning credit cards only have a net benefit when used diligently.
Do you need a minimum card turnover to get a business credit card?
The majority of cards do not have a minimum turnover requirement, such as American Express and many high street banks. For providers that do, such as Capital on Tap, they are typically low, such as £2,000 per month.
FAQs
Yes, most business credit card providers are welcome of new businesses. A personal guarantee may be required to offset the risk or have the person behind the application as the primary evaluation (e.g., a personal credit check). Many high street banks review your existing personal current account with them.
Without a business credit history, your personal credit history becomes more important. A good personal credit score can give you a better chance of approval. Recent financial data on the business may also be used to build your case.
Yes, many credit cards are targeted to startups by offering introductory bonuses, zero annual fees or first-year fee waivers, low eligibility criteria and discounts to SaaS products. Generally, credit cards are accepting of brand new startups but may offer a heightened APR or lower credit limit than established firms..
Yes, it’s common for credit cards to accept startups but under a low credit limit agreement. This way, the business can prove itself as it grows, with scope for agreeing better terms in the future.
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