Best business cashback credit cards

Business cashback credit cards can help companies earn money back on everyday spending while keeping cash flow under control. When used correctly, these cards reward you for costs your business already has, such as buying stock, paying for software, or covering travel expenses.

This guide explains what business cashback credit cards are, how cashback works, compares some of the best options in the UK, and helps you decide whether one is right for your business.

What is a business cashback credit card?

A business cashback credit card is a credit card made for business use that pays you back a small percentage of what you spend. Each time you make an eligible purchase, you earn cashback, which is usually added to your card statement or paid into your account.

These cards are designed for common business expenses, including stock, fuel, travel, advertising, software subscriptions, and office supplies. They are separate from personal credit cards and should only be used for business spending.

How does cashback work?

Cashback is earned as a percentage of your spending on the card. Some business cashback credit cards offer a flat rate on all eligible purchases, which makes it easier to estimate how much you will earn. Other cards offer higher cashback rates on specific categories, such as advertising or fuel.

Many cards also apply limits to how much cashback you can earn over a month or year. Some providers offer higher cashback rates for a short introductory period, but the ongoing rate is usually lower once that period ends.

Best business cashback credit cards in the UK

The table below shows a comparison of some of the business cashback credit cards available in the UK. Details can change, so it is always important to check the provider’s latest terms.

What are the benefits of a business cashback credit card?

Here are some key advantages of a cashback credit card for your business:

• Cashback credit cards help reduce costs by paying you back on everyday spending. Over time, this can add up, especially if your business has regular monthly expenses. 

• A business cashback credit card can also help with short term cash flow. Many cards offer an interest free period on purchases if you repay the balance in full, which can give you extra time between paying bills and receiving customer payments. 

• Using one card for business spending can also make it easier to track expenses. This helps keep business and personal finances separate and can simplify bookkeeping.

• Using a business cashback credit card responsibly and paying the balance on time can help build your business credit history and improve your business credit score over time, making it easier to access other financing options in the future.

What should you be aware of when looking for a cashback credit card?

There are a couple of drawbacks to a cashback business credit card to be aware of: 

• Business cashback credit cards can have high interest rates. If you do not repay the balance in full, interest charges can quickly cost more than the cashback you earn.

• Some cards charge an annual fee, which means you need to earn enough cashback to make the card worthwhile. Cashback caps can also limit how much you benefit, especially if your business spends a lot.

• Not all suppliers accept every card type. This is particularly important to consider with American Express cards, which are not accepted everywhere.

Is a business cashback credit card right for your business?

A business cashback credit card can be a good option if your business has regular expenses and you can repay the balance in full each month. It works best as a way to manage spending and earn small rewards, rather than as a source of long term borrowing.

Tips for getting the most from a business cashback credit card

You can get the most value from a business cashback credit card by using it carefully and consistently. Here are some tips when using a cashback business credit card:

• Only use the card for genuine business expenses and avoid personal spending.

• Set up a direct debit to repay the full balance each month to avoid interest.

• Keep track of cashback caps and any category limits so you know what you are earning.

• Review the card regularly to make sure the cashback still outweighs any fees.

How cashback cards compare to other business finance options

A business cashback credit card is designed for everyday spending and short term flexibility. It is not meant to fund business growth, large purchases, or long term working capital. For those needs, other options such as business loans or flexible credit facilities may be more suitable. Working with 130+ lenders, at Capitalise, we can help you compare all finance options available. This includes helping you decide when a business cashback credit card makes sense and when another type of funding may be a better option.