Is your company ready for a business credit card?

Every business reaches those growth milestones that make you step back and think about what’s next. Maybe you’ve started travelling more for work, or your team could be expanding. Perhaps you’re looking at ways to earn a little back on all those business purchases you’re making. 

If you’ve found yourself wondering whether a business credit card might help streamline your finances and give a bit more flexibility, you’re not alone. Before taking the plunge, let’s explore whether your business is in the right place to make the most of one.

Signs you’re ready for a business credit card

Here are some indicators that suggest it might be time to get a business credit card. 

Growing business expenses 

One of the clearest signs you’re ready for a business credit card is when you notice your expenses becoming more complex and frequent. If you find yourself regularly reaching for your personal card to cover business costs, or spending hours sorting through mixed receipts at month-end, it’s probably time for a change. 

This is especially true if your business involves more travel or team expenses. Having a dedicated business card helps separate these costs and gives you a clearer picture of where your money’s going, all while protecting your personal credit score.

Need for better financial records 

When you’re running a business, clear financial records are necessary for making informed decisions. Mixing personal and business expenses can create a real headache, especially when tax season rolls around. 

A business credit card provides detailed statements and often comes with expense tracking tools that can categorise your spending automatically. Having this level of organisation makes it easier to understand your cash flow patterns and plan for future growth.

Building business credit 

Just like your personal credit score, your business needs to establish its own credit history. This becomes particularly important as your company grows and you look toward other types of financing. A business credit card is often an excellent first step in building this credit profile. 

Making regular purchases and paying them off promptly shows lenders that your business can handle credit responsibly. With a track record in place, you can prove your business is a responsible borrower and show indication that you’re ready to take on larger forms of financing for expansion or major purchases if necessary.

Cash flow management 

Business income rarely arrives in perfect sync with expenses. Sometimes you need to purchase inventory before last month’s invoices are paid, or an equipment repair can’t wait for next week’s payments to come in. 

A business credit card can provide that flexibility, letting you manage timing mismatches without dipping into cash reserves. It can be especially valuable during seasonal fluctuations or when you spot an opportunity for bulk purchasing that could save money in the long run.

Reward potential 

While rewards shouldn’t be the primary reason for getting a business credit card, they can provide meaningful value back to your business. Many cards offer cash back on common business expenses, while others provide travel rewards that can reduce the cost of business trips. 

Choose a card whose rewards align with your regular spending patterns. Take Funding Circle’s Cashback card – with 2% cashback on all business spending for the first six months (up to £2,000) and 1% uncapped after that, it rewards you for purchases you’re already making, from office supplies and travel costs to VAT bills and stock purchases.

Before you apply

Before jumping into a business credit card application, take time to assess your financial foundation. Have a clear understanding of your revenue patterns and make sure you can comfortably manage regular repayments. 

Understand exactly what you’re signing up for. Take time to read through the terms and conditions, paying special attention to interest rates, grace periods and any fees. If you’re planning to carry a balance occasionally, the APR becomes particularly important. Also look at whether there are annual fees and how they compare to the value you expect to get from the card’s benefits.

Making it work for your business

Once you have a business credit card, setting clear policies around its use will be helpful. If you have employees who’ll need access, establish clear guidelines about acceptable purchases and spending limits. Create a system for collecting and reviewing receipts that works with your existing business processes.

Regular review of your statements and spending patterns helps ensure you’re getting the most value from the card. Look for opportunities to maximise rewards without changing your normal business spending. Many card issuers provide online tools or apps that can help track expenses and monitor employee spending if you have multiple cards on the account.

Getting a business credit card

A business credit card should make running your business easier, not add stress to it. Take time to honestly assess your needs and readiness before making the decision. When used responsibly, it can become a valuable asset in managing and growing your business.

Looking? Consider our Cashback credit card or FlexiPay from Funding Circle, which gives you a flexible line of credit that lets you make business payments in full, then choose how you repay over 1, 3, 6, 9 or 12 months. With just one simple fee per transaction and no interest or monthly fees, it’s another way to take control of your business cash flow.

26/02/25: 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.