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Credit Corp vs a business credit card
A business credit card is convenient for everyday spending and can be cheap if cleared in full each month — but carry a balance and the cost compounds quickly. This page sets a Credit Corp loan and a typical business credit card side by side honestly.
Credit Corp vs a business credit card
Being straight with you: if you can clear your card balance in full every month, a business credit card costs you nothing in interest and is usually the simplest option for everyday spend. Credit Corp is built for when you need a larger one-off amount, cannot clear a card balance quickly, or want a fixed cost you know in advance rather than a revolving balance.
At a glance
| What matters | Credit Corp | Business credit card |
|---|---|---|
| Who it is for | UK limited companies and LLPs that need a fixed, one-off amount for a specific purpose. | Businesses wanting a revolving line for everyday spend, ideally cleared monthly. |
| Typical amount | £50–£500 per advance. | Credit limits commonly range from around £1,000 up to £25,000+ depending on the card and provider. |
| Typical term | A fixed 14–84 days, then cleared. | Revolving — no fixed end date if only minimum payments are made. |
| Cost per pound if not cleared monthly | 0.25% per day simple interest, capped at 100% of principal. | Representative APRs commonly range from around 16% up to 35%+ variable, e.g. NatWest's business credit card is 24.3% APR representative. |
| Cost if cleared in full monthly | Not applicable — this product is a fixed-term loan, not a revolving card. | Often £0 in interest if the statement balance is cleared in full and on time each month. |
| Decision speed | Same-day decision in most cases. | Can be fast for a simple application, though credit limit and approval depend on the provider's own scoring. |
| Personal guarantee | No personal guarantee. We lend to the company. | Many business credit cards require a personal guarantee from the applying director. |
| Cost if only minimum payments are made | Not applicable — capped total cost is fixed from the outset. | Can become expensive quickly; making only minimum payments extends the balance and compounds interest for longer. |
Indicative cost per £100 borrowed, per 30 days
Indicative cost per £100 borrowed, per 30 days (illustrative — not a quote)
How each one is priced
| Option | How it is priced | Typical amount & term |
|---|---|---|
| Credit CorpSmall, short borrowing for UK limited companies and LLPs — no personal guarantee. | 0.25% interest per day · £5 one-off fee · total cost capped at 100% of the amount borrowedInterest only; the £5 fee is one-off. Repaying early reduces the total. | £50–£500 · 14–84 days |
| Business credit cardA representative UK business credit card, balance not cleared monthly. | Roughly 16%–35%+ APR representative (e.g. NatWest Business Credit Card 24.3% APR representative)Cost is £0 if the balance is cleared in full each month; the APR only applies to a carried balance, and can compound if only minimum payments are made. | £1,000–£25,000+ credit limit · revolving |
For a plain-English breakdown of what a business loan costs, and why, see the Help Centre.
When Business credit card is the better choice
- You can reliably clear the balance in full every month, making the card effectively interest-free.
- You need an ongoing, revolving line for varied day-to-day spending rather than one specific cost.
- You want the card's own rewards, expense-management or accounting-integration features.
- The credit limit on offer already comfortably covers what you need.
When Credit Corp fits better
- You need a larger one-off amount than your card limit comfortably covers.
- You cannot clear the balance quickly and want a fixed, capped total cost instead of a revolving one.
- You will not give a personal guarantee, which many business credit cards require.
- You want a defined end date rather than an open-ended revolving balance.
How to read the comparison
- APR annualises a credit card's cost as if a balance is carried for a full year; if you clear in full monthly the real-world cost is £0, and if you carry a balance briefly the actual cost is a fraction of the annualised figure.
- We normalise to "cost per £100 borrowed, per 30 days" assuming a carried balance, so it can sit alongside a fixed-term loan; treat the figure as illustrative, not a quote.
- A credit card's real cost depends entirely on your repayment behaviour — cleared monthly it can be the cheapest option here by far; carried indefinitely on minimum payments it can become the most expensive.
- Always check the specific card's current representative APR and any cash-advance or balance-transfer fees before deciding — they vary by provider.
Common questions
Is a Credit Corp loan cheaper than a business credit card?
It depends entirely on how you use the card. If you clear the balance in full every month, the card costs £0 in interest and is cheaper. If you are likely to carry a balance for weeks or months, a Credit Corp loan's capped, simple-interest cost is often more predictable and can work out cheaper than an ongoing carried card balance.
Why choose Credit Corp over a business credit card?
A fixed, known total cost from the outset, no personal guarantee (which many business cards require), and a defined end date rather than an open-ended revolving balance you could be tempted to extend.
Do business credit cards require a personal guarantee?
Many do, particularly for newer businesses or higher limits — always check the specific card's terms. Credit Corp never takes a personal guarantee; lending is to the company alone.
What happens if I only make minimum payments on a business credit card?
The balance takes much longer to clear and the interest compounds for longer, which can make the total cost significantly higher than the headline APR might suggest. A Credit Corp loan's total cost is capped at 100% of the amount borrowed from the outset, so it cannot run away in the same way.
Sources
The credit card rate is quoted from published provider information, accessed July 2026. Figures change — please verify with the provider.
- Business credit card: representative APRs published across UK providers commonly range from around 16% to 35%+ variable depending on card and applicant; NatWest publishes a representative APR of 24.3% variable for its Business Credit Card.
If a fixed, capped total cost with no personal guarantee fits your need better than a revolving card balance, see exactly what a Credit Corp loan would cost.
Apply for a business loan Calculate your cost
Prefer to read more first? How our business loans work, check your eligibility, or compare us with other lenders.
Credit Corp lends to UK limited companies and LLPs under the body-corporate exemption (Articles 60B and 60L of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001). This is not consumer lending. The Financial Ombudsman Service and Financial Services Compensation Scheme do not apply. Full details: regulatory status and responsible lending policy.