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Whether you’re seeking a business credit card for frequent flyers, a basic, no-fee option or something in between, there’s a lot to consider. To speed up the selection process — you do have a business to run, after all — we evaluated more than 40 business credit cards in Canada and chose ones that provide the most value across multiple categories.
Best overall business card: TD® Aeroplan® Visa* Business Card
Best for low interest rate: CIBC bizline® Visa* Card
Best for Aeroplan rewards: CIBC Aeroplan® Visa* Business Card
Best for rewards on office supplies: BMO World Elite®* Business Mastercard®*
Best for premium tier: American Express® Aeroplan®* Business Reserve Card
Best for AIR MILES rewards: BMO AIR MILES®† World Elite®* Business Mastercard®*
Best for: cash back rewards: Scotia Momentum® for Business Visa* Card
Best for no or bad credit: ScotiaLine® for business Visa Credit Card (Secured)
Best for no annual fee: RBC Visa CreditLine for Small Business
COMPARE THE BEST BUSINESS CREDIT CARDS IN CANADA
Use our filter to narrow down your credit card options by the features you care about most.
Best overall business credit card
TD® Aeroplan® Visa* Business Card
The TD Aeroplan Visa Business Card impresses with its obtainable welcome bonus, low interest rate and increased earn rate on essential business purchases.
Pros
- A 14.99% interest rate on purchases is unusual for a card packing this many benefits, including a healthy earn rate on business purchases like shipping and internet.
- Wide range of insurance provided.
- Travel perks include statement Credits For NEXUS Holders, free checked bags and Maple Leaf Lounge guest pass.
Cons
- Most travel perks require cardholders to hit spending thresholds before they can be claimed.
- Smaller businesses may not spend enough to score the full welcome bonus.
- Earn up to 60,000 Aeroplan pointsΓ. Conditions Apply. Account must be opened and approved by September 3, 2024.
- Earn 2 Aeroplan points for every dollar spent on eligible purchases made directly with Air Canada, including Air Canada Vacations.
- Earn 1.5 Aeroplan points for every dollar spent on eligible travel, dining and select business categories, such as shipping, internet, cable and phone services.
- Earn 1 Aeroplan point for every dollar spent on all other eligible purchases.
- Earn points twice when paying with a TD Aeroplan Visa Business Card and providing an Aeroplan number at over 150 Aeroplan partner brands and more than 170 online retailers via the Aeroplan eStore.
- Points can be redeemed for flights, hotels, merchandise, gift cards and more. They can also be used to pay down the card’s balance.
- Linked cards earn 50% more Aeroplan points and Stars at participating Starbucks stores.
- $149 annual fee — rebated in the first year.
- Free first checked bag for up to 9 people travelling on the same reservation on Air Canada flights.
- One free one-time guest pass to Maple Leaf Lounges for every $10,000 in net purchases. Maximum of 4 passes a year.
- Reach Aeroplan Elite Status more quickly by earning 1,000 Status Qualifying Miles and one Status Qualifying Segment for every $5,000 in net purchases.
- Access online reporting, review business expenses, managing existing credit limits and apply spend controls through the TD Card Management Tool.
- Visa SavingsEdge program: save up to 25% on eligible business purchases.
- Travel benefits: travel medical insurance (up to $2 million in coverage for the first 15 days for those under 65; coverage lasts for 4 days for those 65 and older); common carrier travel accident insurance (up to $500,000 for covered losses), trip cancellation insurance (up to $1,500 per insured person; maximum of $5,000), trip interruption insurance (up to $5,000 per insured person; maximum of $25,000), flight/trip delay insurance (up to $500 if a flight or trip is delayed for longer than 4 hours), delayed and lost baggage insurance (up to $1,000 of overall coverage per insured person), auto rental collision/loss damage insurance (covers the full cost of a car rental for up to 48 days), hotel/motel burglary insurance (up to $2,500), mobile device insurance (up to $1,000 in coverage).
- Toll-free emergency travel assistance services.
- Receive a rebate of up to $100 on NEXUS enrolment application/renewal fee costs once every 48 months.
- Save a minimum of 10% on the lowest available base rates in Canada and the U.S., and a minimum of 5% on the lowest base rates internationally on qualifying car rentals at participating Avis and Budget locations.
- Visa Zero Liability protection, Verified by Visa and instant alerts to prevent fraudulent card use.
- Purchase security and extended warranty protection.
- Minimum credit limit of $1,000.
- Interest rates: 14.99% on purchases, 22.99% on cash advances.
Best for: Premium tier
American Express® Aeroplan®* Business Reserve Card
The annual fee is no joke, but cardmembers have plenty of reasons to smile thanks to the American Express® Aeroplan®* Business Reserve Card’s strong earn rates, extensive travel benefits and overall convenience.
Pros
- Serious bonus point potential in the first six months.
- Relatively low interest rate.
- Strong earn rates on eligible Air Canada travel purchases, hotel bookings and car rentals, even after the 6-month even after the introductory period ends. Plus, premium travel perks and benefits, like airport lounge access and priority upgrades, to make sure your next trip goes smoothly.
Cons
- High annual fee.
- Earning the Annual Worldwide Companion Pass may not be possible for all businesses.
- The purchase interest rate rockets to 24.99% if you miss a payment.
- Earn up to 90,000 Welcome Bonus Aeroplan®* points.
- Earn 65,000 Aeroplan points after spending $10,500 in purchases on your Card within the first 3 months.
- Plus, earn an additional 25,000 Aeroplan points when you spend $3,500 in purchases in month 13.
- Earn Aeroplan points that you can redeem in a variety of ways.
- Earn 3 points for every $1 spent on eligible purchases made directly with Air Canada and Air Canada Vacations®*, 2 points for every $1 spent on eligible hotels and car rentals.
- Earn 1.25 points for every $1 spent on everything else.
- Make the most out of a full suite of business management tools that give you more control over your business – anytime and anywhere.
- Leverage your cash flow with the option of carrying a balance or paying in full each month.
- Control employee expenses plus track and accumulate points on your account with Employee Cards, so you have an opportunity to maximize the points you earn.
- Unlock business travel possibilities to make every work trip one to look forward to.
- Access more than 1,200 Priority Pass™ airport lounges around the globe. That means an oasis of comfort before your flight—regardless of your choice of airline or cabin class.
- Enjoy access to select Air Canada Maple Leaf Lounges™ for you and a guest, and Air Canada Café™; in North America, with a same day ticket on a departing Air Canada or Star Alliance®* flight.
- Enjoy Priority Check-In, Priority Boarding, and Priority Baggage Handling when you fly with Air Canada, together with up to eight companions.
- Receive one Annual Worldwide Companion Pass when you spend $25,000 in net purchases prior to your Card anniversary date; your Pass entitles you to buy an accompanying Air Canada economy class ticket for a companion at a fixed base fare from $99 to a maximum of $599 CAD (plus taxes, fees, charges, and surcharges).
- Stay focused on getting where you need to go. Receive up to $100 CAD in statement credits every four years when NEXUS application or renewal fees are charged to your Aeroplan Business Reserve Card.
- Pay with your American Express Aeroplan Business Reserve Card and present your Aeroplan Membership Card at over 170 Aeroplan partner brands and 120 online retailers via the Aeroplan eStore to earn points twice.
- If you’re departing from Toronto Pearson International Airport, enjoy the benefits of being an American Express Aeroplan Business Reserve Cardmember. Get more from your travel experience with access to Pearson Priority Security Lane, Complimentary Valet Service, 15% discount on parking rates, and 15% discount on Car Care Services.
- Roll over any unallocated Aeroplan Elite™ Status Qualifying Miles and unused eUpgrade Credits to the following year to enjoy during your travels.
- Enjoy priority access to the standby list and eUpgrades. Get prioritized on the standby waitlist for an Air Canada flight and higher priority when you request an eUpgrade.
- Earn 1,000 Status Qualifying Miles and 1 Status Qualifying Segment for every $5,000 in eligible net purchases charged to your Card.
- Book flight reward tickets for even fewer points with Air Canada. In addition to flights, you can also redeem for hotel stays, car rentals, vacation packages, merchandise and more.
- Unlock two-car-class rental upgrades, expedited service, dedicated phone line, and more with complimentary upgrade to Avis President’s Club.
- American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, NerdWallet may receive compensation from American Express, which can be in the form of monetary payment.
Best for: AIR MILES rewards
BMO AIR MILES®† World Elite®* Business Mastercard®*
On-the-move business owners are likely fans of the BMO AIR MILES®† World Elite®* Business Mastercard®* for its healthy earn rates, travel perks, small business support, and round-the-clock access to virtual health care through Maple.
Pros
- Earn up to 4x the AIR MILES at certain retailers and reach your redemption goals faster by getting up to 22 additional cards for employees to use.
- Wide range of travel perks and travel protection coverage.
- Access to on-demand virtual physical and mental health care with Canadian-licensed general practitioners with Maple.
Cons
- Airport lounge access is included with a complimentary membership in Mastercard Travel Pass provided by DragonPass — but it isn’t free. You’ll need to spend US$32 per person, per visit.
- While the interest rates are standard, this card does not come with flexible payment options or an extended interest-free grace period.
- Welcome Offer: Get 3,000 AIR MILES Bonus Miles when you spend a minimum of $5,000 in the first three months. Plus, we’ll waive the $149 annual fee for a year.*
- No annual fee for the first year.*
- Get 1 Mile for every $12 you spend.*
- Get 4x the Miles when you use your card at participating AIR MILES partners.
- 25 payment grace days.*
- Get up to 22 additional cards so employees can easily make purchases on behalf of your business and help you earn points faster* (employee cards have an annual fee of $50).
- Use your card at Costco locations across Canada.*
- Travel Protection.*
- Liability Waiver Program protects your business against employee card abuse.*
- Get cash advances at any BMO Bank of Montreal branch or at more than 1 million ATMs worldwide.*
- Worldwide Acceptance.
- Complimentary membership in Mastercard Travel Pass provided by DragonPass.
- Become A Cardholder & Get Access To Virtual On-Demand Healthcare With Maple.*
- *Terms and conditions apply.
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
Best for: Rewards on office supplies
BMO World Elite®* Business Mastercard®*
The BMO World Elite®* Business Mastercard®* is a solid option for business owners seeking a travel card, as it boasts travel insurance and airport lounge access for a relatively low annual fee. Plus, cardholders can take advantage of a points program that rewards business expenses, like gas, office supplies and cell phone payments.
Pros
- Accelerated rewards rates on everyday business spending, including gas, office supplies, cell phone and internet bill payments.
- Travel insurance coverage that includes trip cancellation, trip interruption, baggage delay, and more.
- Free Maple virtual care visits.
Cons
- Limited airport lounge access.
- $50 price for each employee card.
- Welcome Offer: Get over $1,500 in value!* This includes up to 100,000 BMO Rewards Points – that’s a $669 value in the first year.*
- 0.00% introductory interest rate on Balance Transfers for 9 months with a 3% transfer fee.*
- No annual fee for the first year.*
- Earn 4 BMO Rewards points for every $1 you spend on gas, office supplies and cell phone/internet bill payments.*
- Earn 1.5 BMO Rewards points for every $1 you spend.*
- Get up to 7 cents off per litre on all Shell®± fuel.*
- Complimentary membership in Mastercard Travel Pass provided by DragonPass, with two annual complimentary passes.*
- 25 payment grace days.*
- Get up to 22 additional cards so employees can easily make purchases on behalf of your business and help you earn points faster* (employee cards have an annual fee of $50).
- Use your card at Costco locations across Canada.*
- Travel Protection.*
- BMO’s Liability Waiver Program protects your business against employee card abuse.*
- Get cash advances at any BMO Bank of Montreal branch or at more than 1 million ATMs worldwide.*
- Worldwide Acceptance.
- Become A Cardholder & Get Access To Virtual On-Demand Healthcare With Maple.*
- *Terms and conditions apply.
- BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
Best for: Low interest rate
CIBC bizline® Visa* Card for Business
A low interest rate, no annual fee, a reasonable minimum income requirement, and the potential for a generous credit limit make the CIBC bizline Visa card a viable fit for small but growing businesses.
Pros
- No annual fee for up to ten cards.
- A very low interest rate.
- A credit limit of up to $50,000.
Cons
- The interest rate can fluctuate, which could be an issue for businesses on a tight budget.
- Very few perks.
- No opportunity to earn rewards through business-related purchases.
- No annual fee for the first card and up to nine additional cards.
- Credit limits range from $1,000 to $50,000.
- Manage, track and organize credit activity through CIBC CreditSmart.
- Fraud alerts and zero liability in the event of fraudulent card activity.
- $100,000 in common carrier accident insurance for the cardholder, a spouse and dependent children.
- A $35,000 minimum individual annual income is required for approval.
- Preferred rates: As low as 8.20% — CIBC Prime plus 1.5% on purchases and cash advances.
Best for: No or bad credit
ScotiaLine® for business Visa Credit Card (Secured)
With no annual fee and up to $500,000 of credit available, the ScotiaLine for Business VISA Credit Card (Secured) is a solid choice for business owners who do not qualify for a traditional credit card.
Pros
- No annual fee.
- Low interest rate.
- Up to $500,000 credit limit.
Cons
- No rewards.
- No welcome offer.
- No annual fee.
- Free supplementary cards and personalized cheques.
- Discounts on car rentals.
- Low interest rate (Prime + 1%).
- Unsecured version available.
- Purchase protection and extended warranty coverage.
Best for: Cash back rewards
Scotia Momentum® for Business Visa* Card
Growing companies should look at the Scotia Momentum for Business Visa card for its low annual fee, impressive introductory rate for balance transfers, and strong cash back earn rate on common business purchases.
Pros
- A low introductory interest rate on balance transfers, plus 25-day interest-free grace periods on new purchases.
- Plenty of opportunities to earn cash back.
- Potential credit limits range from $500 to $100,000.
Cons
- No reward bonuses upon card approval.
- Few perks beyond relatively limited insurance options.
- The 3% cash back only applies to the first $50,000 in eligible purchases.
- Intro offer: 2.99% interest rate on balance transfers, Scotia® Credit Card Cheques and cash-like transactions for the first six months (22.99% after that). This rate cannot be used to transfer a balance from another Scotiabank Account, or to make a payment or deposit to another Scotiabank Account. Offer ends October 31, 2024.
- Earn 3% cash back on recurring bill payments and eligible gas station, restaurant and office supply store purchases — up to a maximum spend of $50,000. 1% cash back after that.
- 1% cash back on all other eligible purchases.
- Cash back rewards can be redeemed as deposits into eligible Scotiabank Canadian Dollar bank accounts or as credits against credit card balances.
- Annual fee: $79 for the primary card and $29 for each supplementary card.
- Credit limit of up to $100,000.
- Insurance offered: out-of province/territory travel emergency medical insurance (up to $1 million each for cardmembers, spouses and dependent children), rental car collision loss/damage insurance (eligible only for rental vehicles valued at less than $65,000), purchase security and extended warranty protection.
- Optional Scotia Business Loan Protection coverage up to $2,000,000.
- Save up to 25% off base rates on car rentals at participating Avis and Budget locations in Canada or the U.S.
- Visa SavingsEdge: receive discounts on business purchases at participating stores.
- Preferred rates: 19.99% on purchases, 22.99% on cash advances, including balance transfers and Scotia Credit Card Cheques.
Best for: Aeroplan rewards
CIBC Aeroplan® Visa* Business Card
The CIBC Aeroplan Visa Business Card’s low interest rate and travel perks make this card a good fit for business owners on the move.
Pros
- Low interest rates available.
- Airport lounge access.
- Annual fee rebate for the first year.
Cons
- Lowest tier interest rate is not guaranteed.
- Travel medical insurance not included.
- $180 annual fee (first year rebated).
- 12.99% – 18.99% purchases APR.
- 2x Aeroplan points for Air Canada bookings.
- 1.5x Aeroplan points on travel, transportation, dining and other services.
- 1x Aeroplan point on everything else.
- Earn points twice through the Aeroplan eStore.
- Insurance coverage include trip cancellation, trip interruption, flight delay, baggage insurance, rental car coverage, purchase security, extended protection and common carrier accident insurance.
- Complimentary upgrade to Avis Preferred Plus.
- Free first checked bag for you, your authorized users and up to eight companions every time you fly with Air Canada.
- Earn up to four complimentary Maple Leaf Lounge One-Time Guest Passes per year.
- Authorized users can access travel benefits even when travelling without you.
- Get an extra night free for every three hotel nights redeemed with Aeroplan points.
Best for: No annual fee
RBC Visa CreditLine for Small Business
Petro-Canada customers may be happy to hear that RBC Visa CreditLine for Small Business offers discounts at the pump and comes with no annual fee. Other perks include DoorDash discounts and purchase protection.
Pros
- No annual fee.
- Additional fuel savings when you link the card to a Petro-Canada account.
- Free DoorDash deliveries with a three-month complimentary DashPass subscription.
Cons
- No welcome offer, as of June 2023.
- Variable interest rate.
- Cannot apply online.
- Only two cards available per account.
- No annual fee.
- Up to one free additional card.
- Earn 1 RBC Rewards point for every $2 spent, with no limits.
- Use RBC Rewards points for travel, cash back, merchandise and more.
- Purchase security and extended warranty insurance are provided.
- Fraud protection and enhanced security through RBC’s 24-hour worldwide fraud detection services and Visa’s Zero Liability policy.
- Get 20% more Petro-Canada points and RBC Rewards points when you link your Petro-Points account to your credit card account. Plus, save $0.03 on every litre of fuel at the pump.
- Pay your balance, transfer a balance and receive funds online.
- Optional travel, life and disability insurance are available.
- Must apply in person or over the phone.
Honourable mention for: Low annual fee
Meridian Visa* Business Flex Cash Back Plus Card
The Meridian Visa Business Flex Cash Back Plus card is a simple option that offers flat rate rewards, a low annual fee and basic insurance perks — great for anyone looking for a no-frills credit card for their small business.
Pros
- Low annual fee, waived for the first year.
- Flat-rate rewards that can be redeemed for statement credits.
Cons
- Points can only be earned on gas, groceries, pharmacy and utility payments.
- Limited insurance coverage.
- $49 annual fee, waived for the first year.
- Earn 1 reward point per $1 spent, with no limit.
- Redeem your cash back rewards the way you want. Options include: Gift cards, merchandise, travel or account credit.
- No additional card fee.
- Mobile device insurance, up to $1,000 in coverage.
- Purchase protection insurance, up to 90 days from purchase date. Maximum of $10,000 per item up to a maximum of $50,000 lifetime per account.
- Extended warranty insurance, up to one additional year. Maximum of $10,000 per item up to a maximum of $50,000 lifetime per account.
- Price protection service, up to 60 days after purchase. Get reimbursed the difference if the item is found cheaper elsewhere. Conditions apply. $100 maximum per item and $500 per account per year.
- Waiver of liability program. Allows a Business to request a waiver of the Business’s liability for eligible Waivable Charges made by the Cardholder.
- Credit range: $5,000 to $250,000.
- 21-day grace period on all purchases.
- Access to Visa SavingsEdge, a discount portal for business cards. Enrollment is free, and savings earned on purchases are remitted as statement credits.
- To apply for this credit card, contact a Meridian advisor. You must be a Canadian tax resident who is a sole proprietor with a business name registered in Ontario and a single-person corporation with a trade name registered in Ontario to open a Meridian business bank account.
Methodology: How we evaluate cards
NerdWallet Canada selects the best credit cards based on unique attributes, overall consumer value and suitability for specific kinds of consumers. Factors in our evaluation methodologies may include annual fees, rewards rates, interest rates and other noteworthy features specific to the card type. To learn more about how we evaluate and select financial products, you can review our credit card methodology.
Summary of the best business credit cards in Canada
CARD NAME | BEST BUSINESS CARD FOR | ANNUAL FEE |
---|---|---|
TD® Aeroplan® Visa* Business Card | Best overall business credit card. | $149. |
CIBC bizline® Visa* Card | Best for: Low interest rate. | $0. |
CIBC Aeroplan® Visa* Business Card | Best for: Aeroplan rewards. | $180. |
BMO World Elite®* Business Mastercard®* | Best for: Rewards on office supplies. | $149. |
American Express® Aeroplan®* Business Reserve Card | Best for: Premium tier. | $599. |
BMO AIR MILES®† World Elite®* Business Mastercard®* | Best for: AIR MILES rewards. | $149. |
Scotia Momentum® for Business Visa* Card | Best for: Cash back rewards. | $79. |
ScotiaLine® for business Visa Credit Card (Secured) | Best for: No or bad credit. | $0. |
RBC Visa CreditLine for Small Business | Best for: No annual fee. | $0 |
Meridian Visa Business Flex Cash Back Plus card | Honourable mention for: Low annual fee. | $49. |
The best business cards from Canada’s big banks
Consider these top choices if you prefer to bank with one of Canada’s big banks.
BANK | Best card |
---|---|
Bank of Montreal (BMO) | BMO World Elite®* Business Mastercard®* |
Canadian Imperial Bank of Commerce (CIBC) | CIBC Aeroplan® Visa* Business Card |
Royal Bank of Canada (RBC) | RBC Visa CreditLine for Small Business |
Scotiabank | Scotia Momentum® for Business Visa* Card |
TD Bank | TD® Aeroplan® Visa* Business Card |
What to know about business credit cards in Canada
As with other types of credit cards, there’s plenty to learn before selecting a business credit card that best suits your needs.
What is a business credit card?
A business credit card is a credit card specifically intended to cover business expenses. Whether you employ others, own a small family business or run a solo freelance operation as a side hustle, a business credit card will help you reach your goals faster.
Business cards vs. personal cards
Business credit cards are similar to personal credit cards in most ways — you use them to make purchases and then pay off the balance, incurring interest charges on what’s left over. However, there are differences related to perks, benefits and features.
Business credit cards often have higher credit limits, which accommodate costly business expenses. Some also help you tap into more financing for your business by including things like longer interest-free grace periods and low introductory interest rates on purchases or balance transfers.
The rewards involved with business credit cards are similarly tailored to meet business needs. For example, some travel rewards cards offer higher earn rates on items like office supplies, internet services and cell phone bills. Other cards provide cash back that can be reinvested in your business. Some come with juicy introductory earn rates and welcome bonuses; others provide useful perks like travel insurance and accounting tools designed to help small businesses.
Finally, credit card providers often let businesses apply for several additional cards, which allows your employees to easily make business-related purchases as supplementary cardholders to help you claim the rewards sooner. Protection from employee misuse may be provided in the form of a liability waiver or insurance.
Who can get a business credit card?
Since business credit cards are designed to suit the needs of business owners and freelancers alike, you don’t need to own a large-scale business in order to apply for one. A business credit card should be within your reach as long as you can provide proper evidence that your business exists.
Many cards don’t even require your business to hit certain revenue thresholds, so if you just started a small business and it isn’t yet turning a profit, you may still get approved.
Why get a business credit card?
A business credit card separates business expenses from your personal spending, which simplifies accounting and record keeping. This can be invaluable when tracking expenditures and budgeting for your company.
Using a card solely for business purchases also makes it easy to deduct the interest and most fees you pay as business expenses. Get your personal and business spending mixed up, though, and tax time could get messy.
A business credit card can also give you access to perks and rewards that are better suited to your company’s needs. Expense tracking tools, higher earn rates on business-related purchases, and discounts on essentials like gas are just a few examples of the goodies that come with some Canadian business credit cards.
Types of business credit cards
Business credit cards and charge cards are tailored for businesses of all sizes, so it’s important to identify the right type of card for your needs.
Small business credit cards
Small business credit cards operate almost identically to personal credit cards. Business owners generally apply for these cards directly and bear the responsibility of paying the fees and charges.
While many small business card applications will be evaluated based on the owner’s personal credit score, some also require minimum income requirements. Applicants will also need to show documentation that proves their company is a real entity.
Small business credit cards are generally the best option for sole proprietors, who can use them to earn rewards not offered by their personal credit cards, and small or mid-sized business owners with multiple employees.
But they’re also a fit for brand new businesses in Canada.
Business credit card options designed for entrepreneurs just getting started include cards with no annual fees or lower interest rates, which can help reduce a new company’s credit burden. Cards with low — or no — income requirements can also help upstart business owners get approved for their first company card so they can start building credit.
Corporate credit cards
Corporate credit cards are designed for larger companies with strong credit scores that generate significant revenues. American Express, for example, recommends its corporate credit cards to Canadian businesses with annual revenues of $10 million or more.
Even though corporate credit cards can be distributed to employees, paying off a corporate card’s fees and charges are the responsibility of the corporation, not an individual worker or owner.
How to compare business credit cards
Business credit cards vary in terms of what they offer cardholders. Comparing them effectively often involves looking at several cards and reviewing the features most important to your needs. This may include:
- Interest rates on purchases, balance transfers and cash advances.
- Annual fees for the primary card and any additional cards.
- Credit limit offered.
- Rewards programs — cash back and travel points are two common examples — and the earn rates associated with them.
- Welcome offers, enrollment bonuses and purchase thresholds that can unlock more rewards points.
- Perks like travel insurance and access to exclusive deals.
- Discounts on commonly purchased items.
- Tools for expense tracking and business management.
Pros and cons of business credit cards
Even though business credit cards vary from one to the next, there are some common pros and cons that apply to most.
Pros
- Simplifies accounting and budgeting by separating personal and business expenses.
- Earn rewards at a higher rate than what’s offered by most personal credit cards.
- Travel perks, discounts and insurance offerings can provide real benefits.
- Used responsibly, business credit cards can help you build and strengthen your business’s credit history, which can help secure future financing for your business, like loans or a mortgage.
- The fees and interest paid are often tax-deductible.
- Account management and expense tracking tools are provided by many business cards and can help small businesses stay on top of their finances.
Cons
- Your personal creditworthiness will be negatively impacted if you aren’t able to manage your business’s credit card.
- The interest rate you’ll pay on your credit card balances will likely be higher than what you’d pay on a traditional loan or line of credit.
- High annual fees can add up, especially if a business has been approved for multiple cards.
- The potential for misuse or having a card’s information inadvertently stolen increases if multiple people are using a business’s cards.
How to get a business credit card
Once you’ve chosen the best business credit card for your needs, you’ll need to apply and meet certain qualifications to prove your eligibility.
Applying for a business credit card
Applying for a business credit card is a lot like applying for a personal credit card, but with the added element of providing information about your business.
To prove your identity, you’ll typically need a piece of original, valid and current government-issued photo identification, like a driver’s license or passport. If photo ID isn’t possible, some providers will accept valid and current documents from independent, reliable sources.
If you’re a sole proprietor, you may be asked to provide:
- A trade name registration certificate or copy of your Master Business License. This may not be necessary if your business is operated in your own name.
- Your personal Notice of Assessment and income tax return, including your Statement of Business Activities, for the last two years.
- Business year-end financial statements for the last two years that have been signed by the business owner.
- Investment/deposit statements for accounts at other financial institutions.
- Bank account statements at other financial institutions for the past three months.
- Bill of sale/purchase agreements detailing purchases of business assets.
If you’re operating a new business or a start-up that’s less than two years old, you may also have to provide more information, like a business plan, cash flow statement, balance sheet, or financial statements signed since launch.
If your business is a partnership, you’ll be asked to provide proof that a limited partnership exists and personal information about anyone with a significant interest in your business. The same applies to a corporation, but you’ll have to provide the Articles of Incorporation instead of partnership documents.
How to qualify for a business credit card
In addition to providing relevant legal and tax documents that prove the existence and current state of your business, you’ll need to convince credit card providers that they should do business with you.
Doing that requires a strong personal credit report. If you’re applying for your first business credit card, there’s a good chance your company may not have much of a credit history. That means your personal credit score will be a major factor in whether you get approved for a business card and how high your credit limit will be.
In Canada, a “good” credit score falls between 660 and 724. If your credit score is lower than that, however, you may still get approved for certain business credit cards suited for applicants with bad credit.
Some cards may also have minimum income or revenue requirements. If your personal income or annual business revenue falls short of these thresholds, you’ll have to search for a card with a lower one.
Getting the most out of your business credit card
There are several ways you can maximize the value of your business credit card.
- Choose a card that offers the most relevant rewards. Using a card with rewards tailored to your business’s actual spending will help you collect rewards faster. A card that offers a healthy earn rate on gas purchases, for example, may not be of much use to a bicycle messaging service.
- Get multiple cards. Using multiple cards, also known as “credit card stacking”, can help you earn different kinds of rewards. One card could be for travel points, for example, and another could be for earning cash back. Just make sure you’re staying on top of your balances, or the extra interest could eat away the added benefits.
- Qualify for welcome bonuses. Some business credit cards offer substantial welcome bonuses, which are triggered when certain spending thresholds are hit in the first few months of card use. Getting a card a few months out from when you expect to do an increased amount of spending can help you hit those thresholds.
- Take advantage of promotional interest rates. Making major purchases while low introductory rates are in place can help you save money — so long as you pay the balances off before the offer expires.
- Pay more than the minimum balance. Wiping out your entire credit card balance may not be possible every month, but know that paying only the minimum balance is ultimately quite expensive due to interest charges.
- Take advantage of discounts. Many business cards provide discounts on useful items, like gas, car rentals and various business-related merchandise. Don’t overlook these savings.
- Track the interest and fees paid. Interest and fees related to purchases made for your business are tax deductible. Keeping track of these amounts will make tax time a little easier.
How many credit cards should businesses get?
There is no ideal number of different credit cards for a company to have. But there is a case to be made for businesses having more than one card.
Multiple cards mean multiple lines of credit. Running a business can be both expensive and unpredictable, so having more borrowing power at your disposal can come in handy. Having more than one card can also help you earn more rewards.
There are risks involved with applying for too many business credit cards. Each application for a new card can knock a few points off your credit score, so make sure to wait long enough between applications.
Having balances spread across multiple cards requires a little more diligence in making sure they’re all paid off on time, too. You don’t want your interest payments to eat into your profits or diminish the value of your rewards.
Frequently asked questions about business credit cards
Yes. A personal credit card can be used for business purchases. The credit limit for personal cards, however, is generally lower than what’s offered for business cards.
If you’re charging business purchases to your personal credit card, just be sure to track them carefully for when tax season rolls around.
Yes, it is. You can deduct the credit card interest paid on business-related purchases. If you have a dedicated business credit card, you can often deduct the fees, too.
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Interest charges don’t need to be a mystery. Use our credit card interest calculator to see how much interest you’d owe if you carry a credit card balance.
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A business credit card is a way to charge expenses related to a company. Size and financial needs of the company should be considered before getting a business credit card.