Best Business Credit Card

tracyj2009

Hi I'm new to this site and looking for some advice about switching credit cards.

We are a small company, spending up to 3000 each month between 2 HSBC cards, they come with our HSBC current account (could maybe even switch bank account to avoid charges to actually). Balance is paid off in full each month, credit history excellent etc. Thinking of switching to something with rewards. Whats the best one around.

thanks

Tracy

TFD_2

Hi, a few questions:

Are you a limited company or a sole trader / partnership.

Are the HSBC cards company credit cards?

How long has the company been established, and how long have you been with HSBC?

tracyj2009

Hi

We are a limited company, established 2 years with HSBC for that time. the HSBC cards are company credit cards, both the directors have them always used for business use mainly travel,

thanks

TFD_2

Ok my first advice is DO NOT change bank account! With a limited company, banks do not like lending generally, often even with guarantees. 2 years of account history is a good thing, and will help in the future for things such as overdrafts, cards, loans, commercial finance, etc. Not necessarily required now, but things change.

How do the company accounts look? Have you got 2 years worth of filed accounts with a positive P&L and balance sheet? If so, MBNA may be able to help, and they offer cards with points or cashback, admittedly with an annual fee. Amex likewise will be able to offer rewards, but will charge for the cards. Take note as to whether personal guarantees are required. It appears that MBNA do not make the cardholder jointly responsible for the debt, but Amex do (from experience )

Generally company credit cards will offer very little in terms of rewards, cash back, etc. One option is to use personal cards - if these are used exclusively for business purchases, there is no additional admin, and it's a perfectly acceptable thing to do, although will technically breach the T&C's of most cards.

For relatively modest purchases like this, I'd stick where you are. Even if you get 0.5% cash back, this is £180 a year for £3K a month - it's up to you whether this seems worth the hassle.