Best Interest-Free Business Credit Cards

Explore the best interest-free business credit cards to ensure your business can handle expenses, grow, and avoid debt to thrive financially.

Updated: May 23, 2024
Matt Crabtree

Written By

Matt Crabtree

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Does your business need access to manage finances or pay bills? While some business credit cards are one option, did you know that there's one type of credit card that provides a few advantages you shouldn't miss out on?

Whether you need to make purchases or manage expenses, an interest-free business credit card can help.

Selecting a credit card that matches the needs of your business is essential. This process can ensure you avoid becoming indebted as a business.

So, which are the best credit cards for businesses that are interest-free? Check this article for our direct reviews of your best options.

Card NameScoreDetails
1. Santander Business Cashback Credit Card★★★★★Click Here
2. Barclaycard Premium Plus Business Credit Card★★★★★Click Here
3. Metro Bank Business Credit Card★★★★★Click Here
4. NatWest Business Credit Card★★★★Click Here
5. HSBC Commercial Card★★★★Click Here
6. Clydesdale Bank Business Credit Card★★★★Click Here
7. Cashplus Bank Business Credit Card★★★★Click Here

What Is an Interest-Free Business Credit Card?

Interest-free business credit cards are similar to an ordinary credit card. With this card, your company will receive a pre-set limit that you can use for multiple purposes.

For example, you can transfer balances, buy items, or withdraw cash with this card. There's one main difference between this type of credit card and personal credit cards. You'll receive a promotional period where your business will not receive interest on the outstanding balance.

You'll notice that each card's promotional period is different. Some last a couple of months. Some last up to a year. This interest-free period will end when the promotional period expires. After the expiry, a standard annual percentage rate will apply to your remaining balance.

Interest-Free Business Credit Card Pros and Cons

Multiple pros and cons apply to interest-free business credit cards.

Let's consider these now so you can think about the advantages and drawbacks and make an informed decision.

Pros

✔️ Reduce other card balances — By transferring credit card debt that has a high-interest rate to this card, you can reduce your balance. This advantage works because you won't have to pay the annual percentage rate, helping your business save money.

✔️ Preservation of liquid assets — Any liquid assets or cash reserves remain intact, as you can save this capital for investments instead of paying interest for these cards during the promotional period.

✔️ Cash flow management — Your business will receive an interest-free cushion with this card. If you are a small business or a startup with fluctuating cash flow, you can manage expenses more efficiently with a credit card for businesses.

Cons

❌️ Limited 0% annual percentage rate — The 0% annual percentage rate is limited and will expire. After the expiration date, the rate will revert to the standard rate. So, if you intend to carry a balance forward after the promotional period, you might have to pay more in terms of interest.

❌️ Balance transfers come with a fee — Even if your credit card provides a promotional or introductory period, you will typically still have to pay a balance transfer fee, just as you would with a personal credit card. Sometimes, this may be high if you make a large balance transfer.

❌️ Late payments lead to promotion period loss — If you make late payments, this may lead to promotion period loss. In some cases, a penalty might apply regarding the annual percentage rate.

Best Interest-Free Business Credit Cards — Reviews

We reviewed seven interest-free business credit cards after using them and looked closely at their main features.

Read the following sections to discover the results of our first-hand use, and select a card that works for your company.

1. Santander Business Cashback Credit Card

Santander Business Cashback Credit Card

Santander Business Cashback Credit Card
Credit Limit
Subject to status
Representative % APR (variable)
23.7% APR
  • 1% cashback on all business spend with no cap.
  • No foreign transaction fees on purchases abroad when paying in the local currency.
  • No interest charged if balance paid off in full and on time each month.

Representative Example – If you spend £1,200 at a purchase interest rate of 18.9% p.a. (variable) your representative APR will be 23.7% APR (variable). Annual fee £30. Your APR and credit limit may vary depending on your circumstances.

With the Santander Business Cashback Credit Card, we got 56 days of interest-free credit on our purchases. We qualified for this perk after paying our balance on time and in full each month.

When we used this card, we had to pay a £30 annual fee, which Santander added to our card the second we activated it. However, we noticed they do not charge for each card, so we did not have to pay extra when we added cards for employees.

We found that the annual percentage rate of 23.7% applied when we carried a balance.

We were eligible for this business credit card because we met the specific criteria; Santander expects cardholders to be sole traders, have a partnership or a limited liability partnership to qualify. They also expect you to have a current business account with Santander and a business registered in the United Kingdom.

Santander also completed a credit check to determine our eligibility for this card before issuing it.

2. Barclaycard Premium Plus Business Credit Card

Barclaycard Premium Plus Business Credit Card

Barclaycard Premium Plus Business Credit Card
Credit Limit
Minimum £1,000
Representative % APR (variable)
56.8% APR
  • Up to 56 days’ interest-free credit when you pay in full and on time.
  • £150 annual fee.
  • 0.5% cashback on all eligible spend, up to £400 per year.

Representative Example – If you spend £1,200 at a purchase interest rate of 20.2% p.a. (variable) your representative APR will be 56.8% APR (variable). Your APR and credit limit may vary depending on your circumstances.

With the Barclaycard Premium Plus business card from Barclays Bank, you can get up to 56 days interest-free for your purchases if you pay your balance on time and in full. When we used this card, we found that there are many additional bonus features to take advantage of.

We found that this card allows you to earn cashback on travel costs and even receive a discounted rate in terms of foreign exchange fees. Regarding cashback, on our eligible purchases, we received a 0.5% cashback sum, but we found that this was capped at £400. For foreign exchange fees, we were able to save 2%.

We paid an annual fee of £150 when using this card. We did not encounter any extra cardholder fees.

On our £1,200 credit limit, we were charged a 56.8% interest when we carried a balance. However, we noted that this counts as a variable rate and could increase or decrease according to benchmarks.

3. Metro Bank Business Credit Card

Metro Bank Business Credit Card

Metro Bank Business Credit Card
Credit Limit
Minimum £500
Representative % APR (variable)
18.9% APR
  • Free transactions in Europe.
  • Interest-free period up to 56 days on purchases (when you pay your balance in full and on time).
  • No annual fee.

Representative Example – If you spend £1,200 at a purchase interest rate of 17.44% p.a. (variable) your representative APR will be 18.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.

When we used the Metro Bank Business Credit Card, we received an interest-free period on purchases for 56 days. We also received a very low variable annual percentage rate of 18.9% and no annual fees. This fee meant that when we carried a balance after the introductory period, we were charged 18.9% in terms of the annual percentage rate.

We discovered that the minimum credit limit was £500. We could also transfer our balance from another card to the Metro Bank Business Credit card, but only amounts that equated to 75% of the Metro Bank card's limit.

Eligibility for this card required us to have a business current account with Metro Bank or a commercial current account. However, one advantage of this card is that they did not charge us fees for non-sterling transactions within the Single European Payments Area.

We found it easy to manage our card using the online banking and mobile app features. 

4. NatWest Business Credit Card

NatWest Business Credit Card

NatWest Business Credit Card
Credit Limit
Minimum £500
Representative % APR (variable)
24.3% APR
  • £30 annual fee.
  • 1% cashback at eligible fuel and electric vehicle charging stations.
  • Interest-free period of up to 56 days when you pay your balance in full.

Representative Example – If you spend £1,200 at a purchase interest rate of 16.9% p.a. (variable) your representative APR will be 24.3% APR (variable). Your APR and credit limit may vary depending on your circumstances.

We used the NatWest Business Credit Card and received an interest-free period of 56 days. We found that this introductory period applied when we paid our balance in full and that this card is ideal for small businesses that have a turnover lower than £2m. However, we noticed that you must already be a NatWest business customer to be eligible for this credit card.

We discovered that there is no annual card fee for the initial year. When we continued using the card and spent more than £6,000 yearly, NatWest waived the fee according to their specifications.

Using this card, we got 1% cashback with specific fuel stations, and merchant offers with eligible options with the MasterCard business savings. We noticed that the participating merchants changed but still received some good offers.

When using this card with a credit limit of £1,200, we had to pay a 24.3% annual percentage rate when we carried a balance.

5. HSBC Commercial Card

HSBC Commercial Card

HSBC Commercial Card
Credit Limit
Minimum £500
Representative % APR (variable)
22% APR
  • Seamless invoicing, tax and VAT.
  • Flexible solution for larger businesses.
  • No annual fee for the first year.

Representative Example – If you spend £1,200 at a purchase interest rate of 15.9% p.a. (variable) your representative APR will be 22% APR (variable). Your APR and credit limit may vary depending on your circumstances.

With the HSBC Commercial Card, we received a 56-day interest-free period on our credit. We also benefitted from the fact that there was no annual fee for the first year, which changed to £32 for each card in the years after this period.

We noticed a 22% annual percentage rate when we carried a balance. However, when we paid our balance on time from our business bank account, we were not charged interest on any new purchases.

We also noticed that when we made a late payment, a default or late payment charge of £12 applied.

There were a few advantages to this card. We found that the card was accepted at many locations across the globe, backing up HSBC's statement that it's accepted at approximately 40 million locations. We also found that we could make monthly repayments using direct debit. However, this reduced our interest-free period to 38 days.

6. Clydesdale Bank Business Credit Card

Clydesdale Bank Business Credit Card

Clydesdale Bank Business Credit Card
Credit Limit
Minimum £500
Representative % APR (variable)
22.4% APR
  • Special discounts at a range of participating retailers.
  • No annual fee to pay for the first year.
  • Up to 59 days' interest free credit on purchases.

Representative Example – If you spend £1,200 at a purchase interest rate of 16.9% p.a. (variable) your representative APR will be 22.4% APR (variable). Credit limits and interest rates will vary based on individual circumstances.

We used Clydesdale Bank‘s card and found that a 59-day interest fee period for credit on purchases applied. This rate only applied when we paid our balance on time and in full. We did not need to pay an annual fee during the first year but found that other fees exist with this company's credit card.

Some of the fees include foreign transaction fees, fees for late payment and over-limit fees.

We also found that discounts applied when we shopped at participating retailers. For instance, we received a 10% rebate at McAfee.

With a credit limit of £1,200, we had to pay 22.4% as the annual percentage rate when we carried a balance on the card after the introductory rates had expired. When applying, we found that the minimum credit limit was £500.

Two useful features we noticed when using this card were the anti-fraud technology and the online reports feature. We could manage our cash flow securely with this card's MasterCard® Identity Check™ and check our reports online to ensure our business remained protected from fraudulent activity.

7. Cashplus Bank Business Credit Card

Cashplus Bank Business Credit Card

Cashplus Bank Business Credit Card
Credit Limit
Minimum £100
Representative % APR (variable)
29.9% APR
  • 1% cashback on purchases.
  • No annual or monthly fees.
  • Up to 56 days’ interest free credit, when you pay in full each month.

Representative Example – If you spend £1,200 at a purchase interest rate of 29.9% p.a. (variable) your representative APR will be 29.9% APR (variable). Credit limits and interest rates will vary based on individual circumstances.

When we used Cashplus Bank‘s business credit card, we found an interest-free period of 56 days applied. This introductory period was valid when we paid our balance in full each month. We also received 1% cashback on eligible purchases. This cashback was limited to the first £100,000 of eligible purchases.

When using this card, we discovered that no annual or monthly fees apply and that the annual percentage rate was as low as 19.94% when we carried a balance on the card. Rates from 19.94% APR to 49.94% APR depending on individual circumstances.

We could use Cashplus Bank's mobile and online banking services to access our account anytime. This feature made tracking spending efficient and smooth.

Eligibility for this card requires cardholders to be sole traders or limited company directors. Cashplus Bank performed a credit history check when we applied for the card. We found that our record included a hard search following the credit check and that Cashplus Bank also considered our financial circumstances before they approved our application.

Best Interest-Free Business Credit Cards: The Verdict

In terms of business credit cards that are interest-free, there are several advantages. However, aligning your business needs with the card you choose and its features is still important. If you begin with the cards in this article, you will find the options that have the best advantages.

Some top cards include Metro Bank's business credit card and Cashplus’s card. But make sure you check each card before you settle on one. Select an interest-free business credit card to reap the rewards of effortless financial management for your company.

Related Guides:

FAQs

Who Is Eligible for a Business Credit Card UK?

What Should You Not Put on a Business Credit Card?

What Are Some Drawbacks of Using Credit Cards in Small Business Financing?

Can a Business Credit Card Affect Your Personal Credit Score?

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Mentioned Banks

About Barclays Bank Barclays is a British multinational investment bank and financial services company. It was founded in 1690 and is headquartered in London. Barclays originated...
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About Clydesdale Bank Clydesdale Bank is a Scottish commercial bank founded in Glasgow in 1838. Independent until 1920 when it was purchased by Midland Bank, it is the smallest...
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About HSBC Bank HSBC is a British banking and financial services company. It is the largest bank in Europe and the seventh largest bank in the world. The bank originated in Hong Kong...
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About Metro Bank Metro Bank is a retail bank based in the United Kingdom. Founded in 2010 by Vernon Hill and Anthony Thomson, it is the first new high street bank to open in the...
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NatWest, or National Westminster, is a retail and commercial bank based in the United Kingdom. It is one of the ‘Big Four’ UK clearing banks and has more than 7.5million personal banking...
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About Santander Santander UK is a British bank. Though it is a British company and autonomously managed, it is entirely owned by the Spanish Santander Group. Santander is one...
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First Glance An official UK bank with a speedy sign-up process, Cashplus is designed for modern life. Is it everything you need from a UK-based current account? Read on for our...
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