Credit Card Spending Limits

mikeopvc

What's the typical spending limit for a small business credit card?
Does it depend on you credit scoring as to how much they will offer you or do they just have set limits like £5,000 or £10,000 etc?
Can anyone advise what the best credit card for business is at the moment, I'm looking for a long term 0% interest on cash withdrawals and purchases but all I can find is 56 days interest free. Is it different for business cards as a lot of the standard credit cards have 12 months interest free but no business cards seem to offer anywhere near this length.

thanks

normanmark

0% on cash withdrawals? I think you might be looking for a long time.

skyrider007

MBNA do super balance transfer to your current account for 3% fee.

mikeopvc

normanmark, does that mean there's no such thing?
sorry I'm new to the credit card world, you can make cash withdrawals though can't you? or have I got that wrong too.
What is the 56 days interest free for then? I'm confused!

skyrider007, this would be my first ever credit card so wouldn't have anything to transfer, (yet)

thanks for the response guys

skyrider007

mikeopvc wrote: »

skyrider007, this would be my first ever credit card so wouldn't have anything to transfer, (yet)

instead of making cash withdrawal from your credit card (which will incur a fee + higher interest) you can ask MBNA to put money into your current account for 3% fee and 0% interest. you can then take out the money by atm/cheque/counter.

Any

MIke,
56 days free interest is for purchases - you buy something and you are not incurring interest on the first statement coming after the purchase and no interest until the one after that.

SBT is transfer where you transfer cash to your current account for 3% fee and it still behaves like normal balance transfer (card to card) so it has 0% interest free period.

Business credit cards do have some 0% period on cash withdrawalls - usually to the next statement date (our company has Barclaycard) but you pay fee 3%, maximum £3 a transaction.

Business credit cards will NEVER give you the same benefits as personal credit cards though. They are meant only for convenience of payment, not for borrowing as such.

mikeopvc

skyrider007,
Oh I see, will this be ok for a business account? Do I need a business credit card or can I just get a standard credit card and tranfer cash into my business bank account?

normanmark

mikeopvc wrote: »

normanmark, does that mean there's no such thing?
sorry I'm new to the credit card world, you can make cash withdrawals though can't you? or have I got that wrong too.
What is the 56 days interest free for then? I'm confused!

You can make cash withdrawals, but you'll never find anyone who gives away them as 0% - its not credit then is it? Expect high APR for taking money out on the card, be it gambling transactions, foreign currency or money from an ATM.

56 days interest free is for purchases. So basically 56 days counts from the very first day of your new statement, till when that statement's payment is due. So in order to get the 56 days you have to make the purchases on the first day.

Any

mikeopvc wrote: »

skyrider007,
Oh I see, will this be ok for a business account? Do I need a business credit card or can I just get a standard credit card and tranfer cash into my business bank account?

This is more of a question how is your business set up. If you are limited company and you take the credit card in your own name, then you will be also liable for the debt as a private person - hence if the company fails this debt will not be part of the "limited" liability. You as a person will be fully liable for that.
This is more for an accountant question then anything else.
Otherwise as for tranfer of the funds - the bank doesn't care where you transfer the money. So you can transfer it to your account, your mothers account or your neigbours account.

Any

normanmark wrote: »

You can make cash withdrawals, but you'll never find anyone who gives away them as 0% - its not credit then is it? Expect high APR for taking money out on the card, be it gambling transactions, foreign currency or money from an ATM.

56 days interest free is for purchases. So basically 56 days counts from the very first day of your new statement, till when that statement's payment is due. So in order to get the 56 days you have to make the purchases on the first day.

Normanmark, not for buisness cards. On cash withdrawalls you pay withdrawall fee and no interest until the next statement date.
At least for limited companies.
At my old job we had Barclaycard that had £3 fee and in my new job we have NatWest - also £3 fee.

mikeopvc

Oh ok so not really a good idea to get a credit card if I intend to make cash withdrawals, just for purchases then?
I write cheques to my suppliers once a month and have a few direct debits, could I use a regular credit card to pay these or does it have to be a business credit card?

thanks

Mike