Business Credit Card Usage & Statistics UK 2026

Meta description: UK business credit card usage is rising again in 2026. Explore the latest UK stats, how limited companies use cards, what it costs, and how to cut risk.

Business credit cards sit at the centre of day to day SME finance in the UK. Many limited companies u:contentReference[oaicite:8]{index=8}ne tools, and control staff spending. This guide covers the numbers behind that trend and what they mean in practice.

The focus is limited companies, but we also include sole trader and micro business stats when they help. Many very small firms start with a personal card, then move to a business card when they can.

Information only. It is not financial, legal, or tax advice.

2026 snapshot: the stats that matter

If you want a quick view, start here. UK card usage stayed high through 2025, and the data released in January 2026 shows growth in credit card activity. More spending also moved online, which changes both risk and controls.

• In October 2025, there were 403 million credit card transactions, and total spend reached £22 billion. (Source link: UK Finance card spending update)
• In the same update, outstanding credit card balances grew 8.1% over the year to October 2025, and 48.1% of outstanding balances incurred interest. (Source link: UK Finance, October 2025 update)
• Contactless also dominates. In October 2025, contactless made up 66% of credit card transactions. (Source link: UK Finance, contactless share)
• Online spending keeps rising. The online spending ratio hit 50.5% of total card spend in September 2025, up from 43.7% in September 2019. (Source link: ONS online spending ratio)

Those are national figures, covering cardholders across the UK. For a limited company, the message is simple. Cards are still popular, lenders still support the market, and online spend is now normal. That makes controls and fraud prevention more important than they were a few years ago.

What a business credit card does for a limited company

A business credit card is a revolving credit line designed for company spending. It lets you buy now and repay later, usually with an interest free window if you clear the balance in full.

Limited companies often use business credit cards for three jobs:

• Cash flow smoothing: cover expenses while you wait for invoices to be paid.
• Payment convenience: pay suppliers, subscriptions, and travel costs fast.
• Control: keep spending separate from personal spend and set rules for staff cards.

This is a key point for finance planning. A card works best as a short term tool for working capital, not as a long term loan. If you carry a balance for months, you may be paying a high price for convenience.

If you want a deeper explainer on how business credit cards fit into the wider funding mix, see Funding Agent’s business credit cards guide.

How many UK SMEs use business credit cards

UK SME adoption moved around a lot from 2020 to 2024. The pattern makes sense. During the pandemic, many firms used government backed loans instead of cards. After that, card use rose again as firms returned to normal trading and needed flexible credit.

In broad terms, the SME trend looks like this:

• 2019: around 18 to 19% of SMEs had a business credit card.
• 2021 to 2022: about 11% used business credit cards.
• Late 2023: around 15 to 20% used business credit cards, with one quarter hitting about 20%.
• 2024: use stabilised around 15%.

This matters for SEO and for planning. Even if only 15% of SMEs hold a business credit card, cards are still one of the most common external finance tools. Many firms also use personal cards for business spending, which means real card reliance is often higher than formal “business card” ownership suggests.

It also helps explain why lenders and fintech providers keep investing in business card products. Cards are repeat use products. Once a business sets recurring payments, it tends to keep the card.

One more signal is hidden in finance applications. In 2022, only 5% of SME finance applications were for a business credit card, while 50% were for a bank loan. This suggests a simple split. Businesses use cards for fast, day to day flexibility, and they use loans for planned, bigger funding needs.

Want a broader view on how often small businesses use external finance across the UK? The British Business Bank’s Nations and Regions Tracker is a useful reference point: External finance usage remains steady across the UK.

What UK businesses buy with cards

Business credit card spending is not random. Most limited companies put repeat operating costs on cards. These purchases are frequent, and often in the low thousands per month for smaller firms.

In 2026, the most common spend buckets look like this:

• Software and SaaS: accounting tools, payroll, CRM, hosting, design tools, security tools.
• Digital advertising: Google, Meta, LinkedIn, and marketplaces.
• Travel and accommodation: trains, hotels, flights, car hire, conferences.
• Supplies: office stock, packaging, tools, minor equipment.
• Fuel and transport: fuel cards, ad hoc trips, parking.
• Client spend: meetings, small events, and approved hospitality.

The online shift matters here. When half of card spending happens online, you need stronger checks on who can buy what, and where. It is easy for “small” online purchases to add up when you have several staff cards and many subscriptions.

A simple tip for limited companies is to split spending into two streams: recurring subscriptions and one off purchases. Subscriptions should have named owners and clear cancellation rules. One off purchases should follow approval limits.

Credit limits, APR, and approval basics

Credit limits vary a lot. A brand new micro business may only get a limit in the low thousands. Established firms can access higher limits, and some fintech providers advertise very high ceilings for strong firms.

For planning, think in ranges:

• Startups and micro companies: often a few thousand pounds, sometimes similar to consumer card limits.
• Small limited companies with steady turnover: higher limits become more likely as the lender sees stable cash flow.
• Mid-sized firms: higher limits can make sense when you run staff travel, procurement, or large monthly SaaS spend.

APR is the other big factor. Many business cards sit around the mid 20s APR range. That means carrying a balance can get expensive fast. If you plan to carry debt, compare a card with other tools that may have lower overall cost.

Lenders look at a mix of signals when they assess a limited company:

• time trading and Companies House history
• turnover and cash flow patterns
• industry risk
• director history and credit profile
• existing borrowing and repayment track record

Many business cards still use personal checks on directors, and some use personal guarantees. If you are unsure how personal guarantees work, this guide can help: how to understand personal guarantees.

Repayment behaviour: where the risk sits

Repayment behaviour is the difference between a cheap tool and a costly one. The data on UK SMEs is clear. Most SMEs with a business credit card aim to clear the balance in full each month.

A survey split shows:

• 60% pay the balance in full every month.
• 7% usually pay in full.
• 10% part pay.
• 11% make only the minimum payment.

That means many SMEs use a card as a short term bridge. It also means a meaningful minority revolve debt. Those firms pay interest and face higher risk if cash flow tightens.

Another useful way to see risk is to look at all SMEs, not only card users. The SME Finance Monitor data suggests around 6% of all SMEs carry card debt at any given time. That group is not huge, but it is often the group under the most pressure.

The “struggling” segment is a warning sign. Around one in four struggling SMEs report making only the minimum payment. That is a strong signal that the business is using cards as ongoing funding, not short term smoothing.

If you are in this position, it is worth comparing other working capital options. Revolving credit can be a better fit if you need repeat access over many months: revolving credit loans.

Sector trends: who relies on cards most

Sector shapes card use. It changes how fast cash comes in, and how often you need to buy stock or pay suppliers.

Retail is the heavy user

Retail SMEs often rely on credit cards more than other sectors. One study found nearly 60% of retail SMEs put costs on credit cards. Retailers buy stock before they sell it, so cash is always moving. Cards become a quick way to fill short gaps.

Services and hospitality also use cards often

Service firms have frequent purchases for tools, travel, and client work. Hospitality firms can also have tight cycles, and many used pandemic loans heavily. As those loans moved into repayment, some firms leaned on cards for day to day flexibility.

Manufacturing tends to use other tools for big assets

Manufacturing and heavy industry often need machinery and vehicles. Cards do not fit those purchases well. A report suggests nearly one third of manufacturing SMEs use asset finance for machinery. If you need equipment, asset finance can be a better match: how asset finance can boost cash flow.

The take away is simple. Cards are great for repeat operational spend. They are not ideal for large capital purchases.

Regional trends across the UK

Region also shapes card reliance. The mix of local sectors, access to lenders, and business culture all play a role.

One 2023 survey found Scottish SMEs had the highest reliance on credit cards, at close to 60%. The UK wide average in that survey was just over 50%.

High reliance can mean two things at once. It can show strong use of cards for convenience, or it can show fewer alternatives. Where bank finance is harder to access, businesses often fall back on cards.

Northern Ireland is also worth watching. The British Business Bank’s tracker reported that 52% of Northern Ireland smaller businesses used some form of external finance in 2024. (Source link: British Business Bank, Nations and Regions Tracker)

For a limited company, the lesson is practical. If your region is more “card heavy”, you should run tighter controls and monitor balances more often. It reduces surprises.

Business card vs personal card: rules for limited companies

Many founders start by using a personal credit card for business spending. This is common in the first year, especially when the company has not built enough trading history for a business card.

The SME data suggests over half of UK small businesses use personal credit cards to meet business spending needs. That is not ideal for a limited company, but it is real life.

What changes when you are a limited company

A limited company is a separate legal entity. That means you should treat spending as company spending and record it clearly. When you mix personal and company spend, you add admin and you raise the chance of mistakes.

A dedicated business card often gives you:

• cleaner bookkeeping, with fewer year end fixes
• clearer VAT evidence, when paired with proper invoices
• better controls for staff spending
• easier category reporting for management accounts

A quick VAT reminder

Your card statement is not a VAT invoice. For VAT, you still need the supplier invoice that shows VAT details. Set a simple rule, no receipt or invoice, no approval.

What about sole traders?

Sole traders can still benefit from a separate card. It keeps records cleaner and helps you track profit. But the legal separation is not the same as a limited company. Many sole traders choose a personal card used only for business as a first step, then move to a business card later.

Fraud and chargebacks: what changed in 2025 to 2026

Fraud is a growing concern, especially for online transactions. When more spending happens online, criminals focus on remote purchase scams.

UK Finance reported that in 2024, remote purchase fraud cases increased by 22%, and losses rose by 11% compared with 2023. (Source link: UK Finance Annual Fraud Report 2025)

This trend links to a simple weakness, people share one time passcodes or approve a payment in a hurry. Fraudsters use phishing, fake delivery texts, fake supplier emails, and fake login pages.

For limited companies, the best defence is a mix of tools and habits:

• turn on real time alerts for all cards
• use virtual cards for online suppliers when possible
• set per card limits based on role
• lock down merchant categories where you can
• train staff to never share passcodes or approve “urgent” payment links

You should also set a clear process for chargebacks and disputes. Decide who reports issues, who contacts the provider, and how fast. Speed matters.

Costs and cash flow: a simple way to think about it

Here is a simple way to decide if a business credit card fits the job. Ask two questions:

• Will we clear the balance in full most months?
• Is the spend short term, repeat, and easy to track?

If you can answer yes to both, a card can be a strong fit. It can reduce admin, add an interest free window, and give you clean reporting.

A quick example for a limited company

Imagine your limited company pays £8,000 each month on software, ads, and travel. Your customers pay invoices 30 days after you bill them. You can either pay from cash, or use a card and clear it after you get paid.

If you clear the balance in full, the card acts like a short bridge. If you carry the balance, interest starts. With APR in the mid 20s, interest can eat margin fast.

A safe approach is to treat the card like a tool with a deadline. Set a rule that the business clears it in full, unless the finance lead approves a plan. That plan should include dates and amounts.

If you know you will not clear it, compare other options. A term loan can suit planned borrowing. A quick unsecured business loan can suit time sensitive needs when a card limit is too small.

Controls and policy for limited companies

You do not need a long policy. You need a few rules that people can follow. Good controls protect cash, reduce fraud, and keep your accounts clean.

1) Decide who owns the card programme

In a small limited company, it is often the director or finance lead. In a larger SME, it may be finance plus a team leader. Make it clear who can issue a card, change limits, and approve new merchants.

2) Set limits that match the job

Give each staff card a limit that matches their role. Start small and increase only when you see good behaviour. Keep high limits for procurement or finance roles only.

3) Build a simple approval ladder

• low value spend, approved by default if it fits policy
• mid value spend, manager approval
• high value spend, finance approval

4) Reconcile weekly, not monthly

Weekly checks stop problems early. They also make month end easier. If you use accounting software, connect it to your expense tool.

5) Separate recurring subscriptions from ad hoc spend

Subscriptions creep up. Keep a subscription list and review it each month. Assign each subscription an owner, and set a renewal reminder.

6) Keep your evidence for VAT and accounts

For VAT, you need invoices that show VAT details. For accounts, you need a clear business purpose. Ask staff to upload receipts the same day. If they do not, freeze the card until they catch up.

When a credit card is the wrong tool

A business credit card is not the answer to every finance problem. It is a great tool for short term, repeat spend. It is a poor tool for long term funding.

A card may be the wrong fit if:

• you carry balances for several months
• you need a larger sum than a card limit can provide
• you are funding big assets like machinery
• you rely on minimum payments to stay afloat

If you need longer term working capital, compare:

If you are at the research stage, these guides can help you plan: how to get a business loan in the UK and how to qualify for a business loan.

• revolving credit loans for repeat access with clearer terms
• supply chain finance if supplier payments are your main pinch point
• term loans for planned borrowing

If you are a newer limited company and you struggle to qualify for a business card, a structured option like startup loans may be a better first step.

If you are unsure whether to use secured or unsecured borrowing, this explainer helps: secured vs unsecured business loans.

How to choose a business credit card in 2026

A good business credit card matches your spend pattern. Do not choose based on an advert alone. Choose based on how your business uses the card each month.

Start with your spend pattern

Ask these questions:

• Do we spend more on travel, or more on online subscriptions?
• Do we need staff cards?
• Do we buy in foreign currency?
• Will we clear the balance in full?

Features that matter for limited companies

• Spend controls: per card limits, category limits, and real time alerts.
• Clear statements: easy exports for bookkeeping.
• Employee card support: you can issue, freeze, and replace cards quickly.
• Fraud support: a clear dispute process and strong authentication.
• Cost clarity: fees, interest, and how they calculate interest.

If you want help choosing the right fit, start with the basics: business credit cards for UK SMEs.

Outlook for 2026: what to expect next

The direction of travel is clear. More spending is online, and firms are cautious about costs. Bank of England agents have reported that weak demand limits how far firms can raise prices, which keeps pressure on margins. (Source link: Bank of England Agents’ Summary, February 2026)

For business credit cards, that likely means:

• more focus on fraud controls and authentication
• more underwriting that uses trading data and cash flow
• more virtual cards and subscription controls
• continued demand from SMEs for flexible, quick access credit

The best setup for a limited company is simple. Use a card for short gaps and controlled spend. Keep limits realistic. Reconcile often. Clear the balance when you can.

FAQs

What percentage of UK SMEs use business credit cards in 2026?

The most recent SME surveys show usage stabilising around 15% in 2024, after a rebound to around 15 to 20% in 2023. Early 2026 commentary expects elevated usage to continue because SMEs still need flexible working capital.

Do business credit cards help a limited company build credit?

They can, but it depends on the provider and how the account reports. Good repayment behaviour matters most. Pay on time, stay within limits, and keep utilisation sensible.

Is it OK to use a personal credit card for limited company expenses?

You can account for it, but it adds admin. It also blurs spend, which can create mistakes. A business card is usually cleaner for bookkeeping and controls.

What is the biggest risk with business credit cards in 2026?

Two risks stand out. First, carrying balances at high APR. Second, remote purchase fraud, which rises as online spend rises.

What should I do if I keep carrying a balance?

Treat it as a funding need, not a card habit. Compare other products designed for longer term borrowing, like revolving credit loans or term loans. A structured plan often costs less and reduces stress.

Sources and further reading

• UK Finance card spending update, October 2025 (published January 2026)
• ONS: Consumer card spending, e-commerce and digital trade insights in the UK, 2019 to 2025
• UK Finance Annual Fraud Report 2025
• British Business Bank Nations and Regions Tracker (press release)
• Bank of England Agents’ Summary, February 2026

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