Business credit card APR and fee comparison: the cost of borrowing
FLD is not a lender or a credit broker and does not arrange credit. This is general information, not advice to borrow. Any representative APR shown is an example, not a personal quote: the rate you are offered depends on your circumstances and may be higher.
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. You can check a firm’s details on the FCA Register.
Quick answer
If you might not clear your card in full every month, the interest rate matters more than any reward. Among the cards we checked, NatWest’s Business Credit Card shows a representative 24.3% APR (purchase rate 16.9% p.a.), and Barclaycard Select Cashback a representative 25.5% APR. Capital on Tap advertises rates from 13.86% APR but sets each rate individually.
Our pick for a published low purchase rate: NatWest (16.9% p.a. variable, for NatWest business account holders). Our pick for no annual fee alongside a published representative APR: Barclaycard Select Cashback.
APRs and fees side by side
| Card | Representative APR | Purchase rate | Annual fee | Interest-free period |
|---|---|---|---|---|
| NatWest Business Credit Card | 24.3% APR (variable), £1,200 limit | 16.9% p.a. (variable) | £30 a card; waived in year one, and from year two if you spend £6,000+ a year | Up to 56 days |
| Barclaycard Select Cashback | 25.5% APR (variable), £1,200 limit | 25.5% APR (variable) | £0 annual fee | Check Barclaycard |
| Capital on Tap | Check Capital on Tap — rates from 13.86% APR (variable) | Set individually | Free card: £0. Pro: £299 a year | Up to 42 days |
| American Express Business Gold | Check Amex | Check Amex | £0 in the first year, then £195 a year | Up to 54 days if paid in full |
Figures as of 3 October 2026, taken from each provider’s own website. Rates, fees and eligibility change and depend on your circumstances — check the provider before applying.
Who it’s for
- Businesses that sometimes carry a balance
- Owners comparing the true cost of card borrowing
- Businesses weighing a card against an overdraft or loan
- Anyone confused by APR versus purchase rate
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You always pay in full — rewards and fees matter more; see the comparison table
- You need longer-term borrowing — a business loan may cost less
- You’re struggling with existing debt — speak to a free debt adviser first
- You want regulated borrowing advice
Full explanation
A worked example from the provider
Barclaycard’s own example: a £1,200 purchase at its standard rate, repaid in 12 equal monthly instalments, would cost £1,348.90 in total at 25.5% APR (variable). That’s £148.90 in interest — far more than 1% cashback on the same £1,200 (£12).
APR versus purchase rate
The purchase rate is the interest on purchases. APR adds compulsory fees, such as an annual fee, and annualises the cost so different cards can be compared. For a card with no annual fee, the two figures are often the same.
Cards versus other borrowing
Cards suit short-term spending you can clear within the interest-free period. For longer borrowing, compare Business loans and try the business loans maths with our business loan calculator.
More: Business credit card fees explained, Business credit card comparison table and Business fees FAQs.
The catch
Representative isn’t guaranteed. A representative APR only has to be offered to at least 51% of accepted applicants. You could be offered a higher rate.
“From” rates are floors. Capital on Tap’s 13.86% APR is its lowest rate; your offer depends on your personal and business credit history.
Fees push APR up. NatWest’s representative APR (24.3%) is higher than its purchase rate (16.9%) because it includes the £30 annual fee.
See what a balance would cost at different rates:
FAQs
What is a representative APR?
The rate at least 51% of accepted applicants are offered, including compulsory fees. Your own rate may be higher.
Why is the representative APR higher than the purchase rate?
Because APR includes compulsory fees such as an annual card fee. NatWest’s card shows 24.3% APR with a 16.9% p.a. purchase rate.
Which business card has the lowest APR?
Among the cards we checked, Capital on Tap advertises the lowest starting rate (13.86% APR) but sets rates individually. NatWest publishes a 16.9% p.a. purchase rate.
How much interest would I pay on £1,200?
On Barclaycard’s example at 25.5% APR, repaying over 12 months costs £148.90 in interest.
Is a business loan cheaper than a card?
Often for longer borrowing, but it depends on the rate and fees offered. Compare the total cost.
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