Here we look in some detail at your options when it comes to Limited Company credit cards, and LLP credit cards. We will answer the most commonly asked questions.
We will cover the difference between company and personal credit cards and answer things you want to know about eligibility checks, interest free cards, using a personal credit card for limited company expenses. Which company cards have the best benefits, and which corporate credit cards will get you air miles etc.
Also, we will tell you which in our opinion is the best company card. It’s free of all charges, (no application fee, no transaction charges, no monthly or annual fees etc) and you can get a £75 welcome bonus credited to your account. See promo code below.
Later in this article we compare the top card providers currently in the UK.
Table of Contents
- First question, can a limited company have a credit card?
- How do we get a company credit card?
- How can I get good credit for my Ltd company?
- What is the difference between a personal and company credit card?
- Using a company credit card for personal use
- Using a personal card for business purposes
- The best business credit card
- Capital on Tap Promo Code
- Business cards: Eligibility criteria
- Which corporate cards get you air miles?
- Best Limited company credit cards
- Interest free business credit cards
- High street bank business card options
- Do Ltd companies have credit scores?
- Can I get credit with a new Ltd company?
- Who is liable for a company credit card?
- Suggested Post
First question, can a limited company have a credit card?
Yes, a limited company can get a credit card. In fact, many banks and financial institutions offer business credit cards specifically designed for limited companies. These cards are issued in the name of the company and are intended for business expenses only.
Throughout this article we highlight everything you need to know about company cards. Including how to get one.
How do we get a company credit card?
To obtain a business credit card for your limited company, you will typically need to provide some documentation, such as your company’s registration number, financial statements, and tax returns.
Some providers, like the “Capital on Tap credit card” require very little in the way of documentary evidence, and their online application process takes about 2 minutes. Read our Capital on Tap Credit Card Review.
The bank or credit card issuer will also evaluate your company’s creditworthiness before approving the application. Keep in mind that the terms and conditions, interest rates, and credit limits for business credit cards may differ from those for personal credit cards.
How can I get good credit for my Ltd company?
Building and maintaining good credit for your limited company is essential to obtain and keep favourable financing terms.
Tips to help you build good credit for your limited company
Register your company: Make sure your company is properly registered and has a unique tax identification number or employer identification number (EIN).
Open a business bank account: Keep your personal and business finances separate by opening a dedicated business bank account in your company’s name.
Obtain a business credit card or line of credit: Apply for a business credit card or a line of credit to help establish credit history for your limited company.
Pay bills on time: Make timely payments on all your business-related debts, including credit cards, loans, and supplier invoices. Late or missed payments can negatively impact your company’s credit score.
Monitor your business credit report: Regularly review your business credit report to ensure it is accurate and up-to-date. You can obtain your business credit report from credit bureaus like Experian, Equifax, or Dun & Bradstreet.
Establish trade credit: Develop relationships with suppliers and vendors who report your payment history to business credit bureaus. By consistently paying on time or early, you can establish a positive payment history that will help improve your company’s credit score.
Limit credit utilization: Be mindful of the amount of credit you use compared to your credit limit. Maintaining a low credit utilization ratio can positively impact your company’s credit score.
Maintain financial stability: Keep your company’s financial records organized and up-to-date, and ensure you file all required tax returns and financial statements. Demonstrating financial stability can help improve your company’s creditworthiness.
Borrow responsibly: Only take on debt that your business can reasonably afford to repay. Overextending your company’s finances can harm its credit rating and overall financial health.
Time your credit applications: Space out your credit applications to avoid multiple hard inquiries on your business credit report, which can negatively impact your credit score.
By following these steps and being diligent in managing your company’s finances, you can build and maintain good credit for your limited company.
What is the difference between a personal and company credit card?
There is one key difference from a personal card and that is it is not your own personal credit history and credit score that will determine if you get accepted for the card or not and what credit limit, they offer you.
It is therefore the company credit history that is the main determining factor.
Using a company credit card for personal use
This should be avoided if possible. Corporate credit cards are for business use plain and simple. If you read the terms and conditions of most corporate cards you will find that you are in breach of the terms by doing this.
The card company will more than likely cancel the agreement if they found out.
Using a personal card for business purposes
The opposite way round to number two above and less problematic. It is perfectly acceptable to use your own card for things like expenses. Then you would just claim the money back in the normal way.
The best business credit card
We consider the best UK business credit card to be the Capital on Tap credit card. You can go directly to them and apply for one but here we give a special “promo code” that allows you to get £75 credited to your account as a welcome bonus!
Here I’ll explain why we like the Capital on Tap card and then give you the promo card at the end of the paragraph.
They have two options the standard card which is totally free of charge. (No application fee, no monthly or annual fees)
The 2nd option is the “business rewards card” which has a £99 application fee but with this card you get “points” on all your purchases. Like most reward systems they are good if you use the card a lot.
I opted for the free standard card and I’m only guessing but I suspect most others would too, though you can upgrade anytime if you think your spending would make the rewards scheme advantageous for you.
The same as most cards you get up to 56 days interest free credit on purchases, no ATM fees for withdrawls within the UK and interest rates from 9.9%.
Though I stress that it is from 9,9% they may not offer you a rate that good.
As for credit limits they vary as well, though the maximum allowed is £100,000.
Soft credit check. There is no one who will give you a card without a credit check so its unrealistic to hope for. Who would you expect to give you a line of credit without any form of checks involved? At the very least they need to know that you are who you say you are. They need some reasonable chance that you can afford to repay any borrowing.
But at least Capital on Tap can give you a quick decision without leaving a marker on your credit file. They have what is known as a “soft credit check”.
If you are concerned about you or your companies credit history then checking with them is a good idea.
Their main criteria is “No CCJ’s” and a minimum annual company turnover (not profit) of £24,000.
So remember a soft check means that it will NOT show on your or your companies credit history. They do an initial light touch check and from this can usually say yes or no. That means that you get to find out if you will be accepted or not, without adding another credit search entry that will show up on your credit history.
Capital on Tap Promo Code
Here is the best Capital on Tap (CoT) promo code, 2REFC237G71 if you use it when you apply CoT business credit card you will qualify for a £75 welcome bonus.
See more details about the bonus when you sign up if you use the promotional code: 2REFC237G71 here: Capital on Tap.
Business cards: Eligibility criteria
OK so there are lots of different card providers and although one or two may have their own quirks here is a pretty standard list of things required.
They’d want to know the following: What type of business is it and how long has it been going? They will ask for your companies turnover or projected turnover for the year. They will want to do a personal credit check on you also.
Which corporate cards get you air miles?
These sort of special offer deals are liable to change but some of the cards currently with air miles etc are…
The British Airways American Express® Accelerating Business Card. With this you can earn both “Avios” and “On Business” points for your business and travel spend. Annual fees with this card are chunky though. Over £2,000 as of Feb 2021.
Our preferred option is Capital on Tap Business Rewards Credit Card which is just £99. You can earn unlimited Avios or cashback on all your card purchases. You get up to 1% cashback or 1 Avios for every £1 you spend. You’ll also get 10k bonus points if you spend over £5k over a quarter.
Best Limited company credit cards
We mentioned the Capital on Tap card above for its great rewards programme and the benefits it offers you. (one point for every £1 you spend using the card)
That is the paid option and has a £99 fee if you want to opt for it. However, in our view for most companies, we feel the standard card they offer is the better deal.
When you apply for a Capital on Tap card you have two options you can either go for the “Business rewards credit card” for £99 or their normal “business credit card” which is totally free of charge.
The free option (no application fee, or monthly or annual charge) has up to £100k credit limit, up to 56 days interest free on card spending, no FX or ATM charges in the UK and the ability to have ten free extra cards for staff, directors etc.
That’s actually a very good deal for a standard business credit card. The Business rewards option has everything that the standard card has plus the rewards and you can get up to 20 additional cards for staff.
Both cards will credit your account with a free £75 bonus if you use the promotion code: 2REFC237G71 when you sign up. The £75 is credited to the card account after your first purchase.
Interest free business credit cards
It is standard practise that no one gets charged interest on card purchases these days so long as you pay your balance in full. This means you are getting interest free credit and the safety of making purchases via credit rather than debit card.
Credit cards offer far more protection against fraud etc, so that why you should use them for all purchases.
Withdrawing cash is another matter though. If you want cash from an ATM then you should use your company debit card to avoid paying interest.
High street bank business card options
Here we look at some of the high street options for business credit cards. The title of this section says “bank”, but we look at one or two building society ones also.
|Provider||Purchase Int Rate||Fees||Representative APR|
|Lloyds business credit card||16.3%||£32pa||22.4%|
|HSBC||15.9%||Yr 1 0, Yr 2 £32pa||22%|
|Bank of Scotland||17.57%||£32 pa||22.4%|
|Amazon Business||21.9%||Yr1 0, Yr2+ £50pa||32.6%|
|*Correct Feb 2023|
Do Ltd companies have credit scores?
Yes, limited companies can have credit scores. A company’s credit score is separate from the personal credit scores of its owners or directors though.
Can I get credit with a new Ltd company?
Difficult but not impossible. Lenders don’t like risk and a brand new company with no track record doesn’t look great to them. So what will you need if you’re a start-up or a reasonably new company. (Less than 12 months)
Having a very strong personal credit history will help. A business plan that will blow their socks off will help, but nothing helps more than collateral. Though I’d think very carefully about putting your house up as security for any sort of business loan or credit arrangement.
Who is liable for a company credit card?
With a limited company credit card, it depends on the terms and conditions in the credit agreement of the card provider, as to exactly who/what is responsible for the debt if it goes pear shaped.
It can either be that the debt run-up on the card can fall on the company, or at the feet of the individual concerned. In some cases, it can be either you or the company, whichever one gives them the best chance of getting their money back.
So, the 2 most common liability structures for limited company credit cards are.
Corporate liability: In this arrangement, the company is solely responsible for the debts incurred on the credit card. The company agrees to pay all charges and fees associated with the card, and the individual cardholder has no personal liability for the debt. This is a common liability structure for larger businesses and corporations.
Joint and several liability: With this structure, both the company and the individual cardholder are responsible for the debt on the card. If the company fails to pay the debt, the cardholder may be held personally liable for the outstanding balance. This type of liability structure is more common for small businesses and can offer more risk to the individual cardholder.
You should carefully check the T&C’s before you sign up for a credit card to make sure you know what exposure you might have if it all goes wrong.
Over the years I’ve been a sole trader, in a partnership and owned and run limited companies. As I know so many people in the blogging and eCommerce industry, I’m often asked about company finance issues in general.
Over the last year or so I’ve been asked lots of specific questions about company credit cards for self-employed people and limited companies.
I thought therefore that it might be useful to actually produce my answers in this post, so that others can use it for reference.
You may well find this post useful.