Start here
Match the tool to the cash-flow problem.
First identify what the money is for, when it will be repaid and whether the business can still meet its commitments if revenue arrives late. If the answer depends on a permanent balance, pause and consider a loan, overdraft, grant, supplier terms or a smaller purchase instead.
Decision guide
Choose the funding route before the provider.
Business credit card
Short, planned business purchases that can be repaid in full by the due date.
Check first
A card is not working capital for recurring losses. Check the interest rate, repayment date, personal guarantee and what happens if a balance remains.
Loan or asset finance
A defined investment with a longer useful life, such as equipment, stock or a planned launch cost.
Check first
Compare the total repayable amount, personal guarantees, term and early-settlement conditions rather than the headline monthly payment alone.
Overdraft or cash-flow support
A predictable short gap between paying suppliers and receiving customer income.
Check first
Availability, fees and limits can change. Treat it as a contingency, not as a replacement for a cash-flow forecast.
Compare before applying
A five-question check for every card offer.
| Question | Why it matters | Evidence to check |
|---|---|---|
| Can we repay on time? | Interest and fees can outweigh rewards quickly. | Your cash-flow forecast and the provider’s repayment terms. |
| What will it cost if a balance remains? | The headline reward is not the total cost of credit. | Rate / representative APR where supplied, fees and total-cost examples. |
| Who is eligible? | New businesses, sole traders and limited companies may face different criteria. | Provider eligibility, trading-history and verification requirements. |
| Is there a personal guarantee or credit search? | A business facility can still affect an individual director or owner. | Provider terms, guarantee wording and credit-search policy. |
| What are the alternatives? | A lower-risk route may fit the purchase and repayment window better. | Loan, overdraft, supplier finance, grant or lower-cost purchase options. |
A verified reader offer
Capital on Tap for eligible businesses.
If a business credit card is suitable after the checks above, Capital on Tap’s verified SETTINGUP offer gives 7,500 points after the first qualifying transaction. UK Startup may receive a referral fee if you use the link; this does not change the offer. Credit is subject to status, and the provider’s terms and conditions apply.
Compare eligibility and repayment before applying
Use the provider link to see the current full terms
Keep the card for planned business spending, not ongoing losses
When not to apply
Pause if the card is covering a structural shortfall.
Do not use a credit card to mask payroll, tax or supplier costs that cannot be repaid from expected cash receipts. Update the cash-flow forecast first, speak to the creditor early if payment difficulty is likely, and seek qualified debt or financial advice where appropriate.
Related decisions
Keep the plan connected.
Bank loans, overdrafts & asset finance
Compare longer-term funding and working-capital options.
Cash-flow forecast template
Model when money enters and leaves the business before borrowing.
Business bank accounts
Choose the account that supports everyday cash management.
Funding & finance guide
Explore grants, Start Up Loans, equity and regional funding.