7 Best Interest-Free Business Credit Cards (2024) (2024)

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.

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

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

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

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

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

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

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

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 circ*mstances.

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 circ*mstances 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:

• Santander Business Credit Card Review
• Barclaycard Business Credit Card Review
• NatWest Business Credit Card Review
• Best Business Cashback Credit Cards