The benefits of no annual fee business credit cards for SMEs

Every pound counts when you’re running a business. That £200 annual credit card fee might look small compared to your turnover, but it’s money that could purchase a subscription, fuel your van if you’re on the road, or buy new office equipment.

Smart business owners know their financial tools shouldn’t cost money just to have them. That’s where no annual fee business credit cards come in, working for your business without charging you for the privilege.

Turning business costs into business gains

Most businesses spend thousands each month on supplies, equipment and day-to-day costs. A no-fee business credit card with cashback means you’re earning money back on expenses you’d pay for anyway.

Take utilities and insurance payments. These regular costs eat into your profits, but put them on a cashback card and suddenly they’re working harder for you. Funding Circle’s Cashback card gives you 2% back on everything for the first six months (up to 2,000), then 1% uncapped after that.

Add up your monthly business spending like supplies, stock, travel costs, office equipment. Now imagine getting 1-2% of that back each month. It makes a significant difference to your spending and rewards your business for expenses. 

Beyond the cashback

The benefits stretch beyond avoiding annual charges and earning money back. Many no-fee business credit cards pack in features that make running your business smoother:

Interest-free periods 

With our Cashback card, you get up to 42 days to pay without interest. It gives you breathing room when cash flow gets tight. And if you pay in full each month, you won’t pay a penny in interest.

Spending control and tracking 

Modern business credit cards come with apps that make expense tracking simple. See exactly where your money’s going without juggling spreadsheets. Download statements, categorise expenses and make tax time easier.

Building business credit 

Regular use and timely payments on a business credit card could help build your company’s credit profile. This could mean better borrowing terms down the line. At the very least, it could give your business a chance to increase its credit rating. 

VAT and tax management 

Large quarterly payments like VAT can strain cash flow. A business credit card lets you spread these costs, especially helpful when client payments are delayed.

Making money management simpler

Running a business means wearing many hats. Your financial options should make life easier, not add complexity. No-fee cards strip away unnecessary costs while adding genuine value:

• Clear pricing: No hidden charges lurking in the small print. Just straightforward fees for any additional services.
• Quick decisions: If you’re a limited company, Funding Circle offers instant decisions without affecting your credit score.
• Flexible payments: Choose to pay in full or spread costs when needed. The control stays with you.
• Easy integration: Many cards link with accounting software, cutting down admin time and reducing errors.
• Mobile management: Check balances, approve payments, and track expenses from your phone.
• Smart features: Set up alerts, spending limits and category controls to stay on top of business spending.

Choosing the right card

When looking at no-fee business credit cards, consider:

• Initial offers: Look for strong welcome bonuses like higher cashback rates.
• Ongoing benefits: Check what you’ll get after any introductory period ends.
• Interest rates: Compare APRs and interest-free periods.
• Additional fees: Check for foreign transaction fees or late payment charges.
• Credit limits: Ensure the card can handle your business spending needs.
• Application requirements: Some cards need minimum turnover or trading history.

The Funding Circle difference

Funding Circle’s Cashback card stands out by removing common barriers. There’s no need to switch business bank accounts, and you’ll get an instant decision without affecting your credit score if you’re applying as a limited company.

With no annual fee (representative 14.9% APR [variable]), market-leading cashback rates and up to 42 days interest-free credit, it’s built specifically for small and medium businesses.

Or take FlexiPay from Funding Circle. As well as giving you more flexibility over how you pay—choose between 1, 3, 6, 9 and 12 month repayment terms —there’s no interest. Instead, it’s replaced by a simple fee per transaction so you can manage your payments and costs with more ease and flexibility. Neither card charges an annual fee. 

Finding the right card for your SME

Business credit cards shouldn’t drain your resources. They should work hard for your business, helping you manage money better while keeping costs down.

Consider your monthly business spending. Factor in the time saved through better expense tracking. Add the cashback you could earn. Subtract the annual fees you’re currently paying. The numbers could just show you that a no-fee card is the right option.

A business credit card that pays you back

Get an instant decision on Funding Circle’s Cashback card with no monthly fee (representative 14.9% APR [variable]). Earn 2% cashback on all spending for the first 6 months (up to £2,000), then 1% uncapped thereafter. Enjoy up to 42 days interest-free credit when you pay your balance in full.

28/11/24: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.