Balance transfer credit cards for businesses

Between covering supplier payments, staff costs, and overheads, many businesses rely on credit cards for flexibility. If balances start building up and interest costs rise, it can put real pressure on your cash flow. A balance transfer business credit card can offer some relief by helping you move existing debts to a card with a lower or even 0% interest rate. However, there are currently no true balance transfer credit cards for UK businesses. meaning you can’t move existing business credit card debt to a new business card with a 0% introductory rate.

That said, there are still ways to achieve similar benefits. Depending on your business structure, this could mean using a personal balance transfer card if you're a sole trader. For limited companies, a business credit card offering 0% on purchases or refinancing through a business loan could be more suitable.

What is a balance transfer business credit card?

Currently, there are no dedicated business credit cards in the UK that offer a genuine 0% balance transfer deal, meaning you can’t directly move existing business card debt to a new business card with a promotional interest free period. However, the concept of a “balance transfer credit card” is still useful to understand, as some routes, such as using a personal card as a sole trader, can offer the same benefits.

The basic principle of a balance transfer credit card is that it allows you to move existing balances from one or more credit cards onto a new card. The goal is to reduce how much interest you’re paying by moving the balance to a card that offers a 0% or low interest introductory period on transfers. In simple terms, it gives you time to pay down what you owe, without your repayments being swallowed up by interest. This can be particularly helpful if you’ve accumulated debt across multiple credit cards or if you’re trying to regain control of your monthly cash flow. It is a short term solution to manage existing debt more efficiently while freeing up working capital for other priorities.

Why might your business use a balance transfer credit card?

There are several reasons a business might choose to use a balance transfer:

• Save money on interest: Transferring a balance to a card with a lower rate, ideally 0%, means your repayments go directly towards paying off the balance rather than interest charges. This can save a substantial amount over time, particularly if your current card has a high APR.

• Simplify your repayments: If you’re managing several cards or lines of credit, keeping track of different repayment dates and rates can be stressful. Consolidating balances onto one card makes it easier to manage, you’ll have a single monthly payment to track and fewer accounts to monitor.

• Improve cash flow: By paying less interest, you free up more money to reinvest into your business.

• Create breathing room: Sometimes, you just need breathing room to reorganise your finances. A balance transfer can give you several months of relief from high interest rates while you plan how to pay off the debt in full.

How balance transfer credit cards work

Balance transfer credit cards make it easier to manage and reduce existing debt by moving what you owe onto a new card with a lower or 0% interest rate. Here’s the key steps involved:

1. Apply for a new business credit card that allows balance transfers. Not all business cards do, so check the terms before applying.

2. Request the transfer soon after approval, many providers require you to do this within 60 to 90 days.

3. Pay a transfer fee, typically between 2% and 5% of the amount you move. For example, transferring £10,000 could cost £200 to £500 upfront.

4. Repay the balance during the promotional period, which can range from six to eighteen months depending on the provider.

During the promotional period, you’ll be charged little or no interest on the transferred amount. Once that period ends, the standard interest rate applies to any remaining balance, so it’s important to plan repayments carefully and avoid missing payments.

What are the advantages and disadvantages of a balance transfer credit card?

What should you look out for when considering a balance transfer credit card?

Even though a balance transfer can be useful, it’s not risk free. Here are the key factors to consider before applying:

1. Eligibility
   Not every business will qualify for a balance transfer card. Lenders will assess your company’s credit history, trading time, and turnover before approving your application. Newer businesses or those with weak credit may find it harder to access the best offers.

2. Transfer limits
   You can usually only transfer up to your new card’s credit limit. If the limit is lower than your current balances, you may not be able to transfer everything in one go.

3. Transfer fees
   Most balance transfer deals come with a one off fee. While this is a small percentage, it can add up. Always compare how much you’ll save on interest against the cost of the fee to ensure it’s worthwhile.

4. Timing
   Promotional rates often apply only if you make the transfer within a set timeframe after opening the account, typically within the first 60 to 90 days. Missing that window could mean losing the offer entirely.

5. Post offer interest
   Once the 0% or low interest period ends, the card’s standard interest rate applies. Business credit card APRs can range from 20% to 35%, so plan to pay off as much as possible during the introductory period.

6. Discipline
   Perhaps the most important point: a balance transfer only helps if you avoid adding new debt. If you continue spending on the card while trying to pay it off, you could end up in a worse position than before.

How to choose the best balance transfer credit card

When choosing the best balance transfer credit card, look beyond the headline rate and consider the full picture. The right card for your business depends on how much you need to transfer, how quickly you can repay the balance, and how the fees add up. Pay attention to the length of the 0% or low interest period, as a longer promotional term gives you more time to repay without accruing interest. Also consider the balance transfer fee, which can significantly impact your savings, as well as the APR that applies once the introductory period ends. Finally, review any additional charges such as annual fees or late payment penalties. Evaluating all these factors together will help you choose the card that offers the greatest savings and flexibility for your financial needs.

What balance transfer credit cards are available?

Currently there are no business credit cards in the UK that offer a true 0% balance transfer period. However, some personal credit cards provide 0% balance transfer deals for extended periods, which can be useful for sole traders who manage both personal and business expenses within the same account.

For limited companies, though, it’s generally best to keep business and personal finances separate. In this case, you might consider a standard business credit card with a 0% interest period on purchases. These cards can serve a similar purpose by allowing you to move new spending onto a lower cost card, freeing up funds to repay existing debts elsewhere.

Alternatively, if your business has a strong credit score and at least six months of trading history, you could explore a business loan as a refinancing option. A business loan can:

• Consolidate multiple card balances into a single, fixed repayment.

• Provide a predictable repayment schedule that fits your cash flow.

• Offer lower overall interest costs compared to a standard business credit card.

Looking for an alternative to credit cards?

If your goal is to clear credit card debt or strengthen your business’s financial stability, a business loan could be a smart alternative. By refinancing existing debt, you can replace unpredictable card payments with a structured plan that aligns with your cash flow. That means less time worrying about interest and more time focusing on growth.

At Capitalise, we make it easier to find the right finance option for your business. With access to over 130 lenders and a dedicated funding specialist, we’ll work with you to secure a funding solution that supports your goals and helps you manage your cash flow more effectively. Apply today to get started.