Is the Barclaycard Select Cashback credit card the best card for sole traders and small businesses?

Today I want to look at the benefits of the Barclaycard Select Cashback credit card for businesses.

Let me answer the obvious question first. Why are we covering it, given that it doesn’t earn you any points or miles?

(The cynical answer, of course, is that Barclays will pay us if you apply, which is true. As part of our relationship with Barclays Premier we now have access to Barclaycard products. As you should know, however, we only promote products which genuinely offer value. You won’t see any other Barclaycard products on HfP for now.)

Why would you get a cashback small business Mastercard?

There is, at the moment, a gap in the market for small business miles and points cards.

You can apply for American Express Business Platinum, American Express Business Gold and British Airways Accelerating Business, but Amex acceptance is lower in the B2B market than in the consumer market. You will need a Visa or Mastercard as well.

Our recommended alternative is the Capital On Tap Business Rewards Visa card. This earns points worth an impressive 1 Avios per £1 spent and has a sign-up bonus (exclusive to HfP readers) which converts into 10,500 Avios.

However, at present, Capital On Tap is only accepting Limited Companies and LLPs. You cannot get the card if you are a sole trader or partnership.

This leads to the question ‘What is the best business Visa or Mastercard for a sole trader to use alongside a Business Amex?’.

The answer is probably a card which is:

• free
• offers 1% cashback on virtually all of your spending

Key link: Barclaycard Select Cashback credit card application form

The representative APR is 27.5% variable but may vary based on your financial circumstances and borrowing history.

Here are the key facts about the card:

What are the conditions of applying?

As well as the standard age and residency restrictions, your business turnover must be over £10,000 per year.

If you are a start-up, you are welcome to apply if your business plan shows expected turnover of £10,000+ per year.

Sole traders are welcome to apply.

What is the Barclaycard Select Cashback annual fee?

There is no annual fee.

What do I earn per £1 spent on the card?

You earn 1% cashback on virtually all spending charged to the card.

You are paid your cashback each month, via a credit to your card statement.

Any other benefits?

Barclaycard runs a special programme for its Business credit and charge card holders called Business Rewards.

You can find full details on this page of the Barclays website.

It offers a variety of discounts and cashback deals for customers. These currently include, for example, 15% off your first £100+ purchase at Amazon Business, 12% off Heathrow Express and 15% off business stationery at Ryman.

If you spend a lot on online advertising, you will get 5% cashback – up to £250 per calendar year – on search campaigns on Microsoft Advertising. If you are advertising on Bing, it is worth getting the card purely for this benefit.

Is this a good card to use when travelling?

It’s not ideal, as Barclaycard Select Cashback charges a 2.99% foreign exchange fee on non-Sterling transactions.

However, you will receive your standard 1% cashback which takes the net cost down to 1.99%.

You will pay the same 2.99% fee if you use any of the American Express Business cards that we cover.

Conclusion

The Barclaycard Select Cashback credit card is, perhaps surprisingly, an aggressively good product from Barclays.

With no annual fee and 1% cashback on virtually all your spending, paid monthly, there is nothing to dislike. Even if you are considering getting American Express Business Platinum, Business Gold or British Airways Accelerating Business due to their generous rewards, this card is useful for places which do not accept American Express.

The 5% cashback on Bing search advertising will be a good enough reason in itself for some readers to apply.

Full details, and the application form, for the Barclaycard Select Cashback credit card can be found here.

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points. The site discusses products offered by lenders but is not a lender itself. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as an independent credit broker.