Top 12 Best Business Credit Cards in Canada for July 2023
Business credit cards provide a broad range of incentives that may assist individual entrepreneurs, partnerships, and major corporate enterprises optimize their expenditures.
These include cash-back incentives, travel bonuses, and, most critically, a safety net for unanticipated bills. We’ve selected the top business credit cards in Canada so you can start increasing your profit margins right now.
Here are the 12 best business credit cards in Canada:
American Express Business Platinum Card: It offers outstanding value and specialized solutions for entrepreneurs and companies of all sizes via its large rewards program, broad travel perks, and a full suite of business tools.
Scotiabank Passport for Business Visa Card: One of the greatest business credit cards in Canada is the Scotiabank Passport for Business Visa Card. It provides exceptional travel perks such as no foreign transaction costs, full travel insurance, and airport lounge access. It also offers a rewarding rewards program and useful company management tools.
BMO CashBack Business Mastercard: The BMO CashBack Business Mastercard is one of the best business credit cards in Canada, with attractive cashback benefits on business spending. It’s a good alternative for small companies aiming to optimize their rewards, with numerous redemption possibilities, full cost management capabilities, and no annual fee for the first year.
TD Business Travel Visa Card: The TD Business Travel Visa Card is one of Canada’s greatest business credit cards. It provides a versatile rewards program, travel insurance, and special business travel incentives. It is an excellent alternative for company owners looking for dependable credit cards for their costs, thanks to its competitive features and benefits.
RBC Avion Visa Infinite Business Card: One of the greatest business credit cards in Canada is the RBC Avion Visa Infinite Business Card. It provides variable benefits, such as the option to earn Avion points, which may be redeemed for travel, shopping, and other items. In addition, the card offers full insurance coverage and special business perks.
CIBC Aeroplan Visa Business Card: It provides extraordinary incentives and perks designed specifically for business travelers, including Aeroplan points, travel insurance, and airport lounge access. It is a good alternative for Canadian firms due to its extensive features.
American Express Business Edge Card: It caters to the demands of small company owners and gives outstanding value with its amazing rewards program, which offers expedited gains on different business costs, flexible redemption possibilities, and beneficial advantages.
BMO Air Miles Business Mastercard: The BMO Air Miles Business Mastercard is one of Canada’s best business credit cards. It has a strong rewards program with Air Miles that allows for travel and product redemption. The card also has insurance coverage and flexible spending restrictions, making it an excellent alternative for companies.
TD Business Solutions Visa Card: The TD Business Solutions Visa Card is widely recognized as one of Canada’s best business credit cards. It provides competitive incentives and perks including cash back on business purchases, adjustable credit limits, and cost management tools. Its characteristics make it an excellent alternative for small and medium-sized organizations.
RBC Business Cash Back Mastercard: The RBC Business Cash Back Mastercard is one of the best business credit cards in Canada. It provides cash back on all purchases, has no annual charge, and has numerous redemption choices. It’s a fantastic alternative for business owners since it includes extras like expenditure management tools and travel insurance.
CIBC Aventura Visa for Business Card: The CIBC Aventura Visa for Business Card is one of the best business credit cards in Canada, with flexible rewards, travel advantages, and unique business bonuses. It offers outstanding value and convenience to company owners and their workers with its strong rewards program and comprehensive insurance coverage.
Scotiabank American Express Business Card: One of the best business credit cards in Canada is the Scotiabank American Express Business Card. It provides important spending control features as well as competitive incentives, including travel privileges. It is a popular option for Canadian companies due to its versatile features and solid relationship between Scotiabank and American Express.
What is a Business Card?
A business credit card is one that is intended to be used for company spending rather than personal expenses by an individual.
It is effectively a revolving credit line that a company owner and any authorized staff may use, pay off, and then use again when they need to make a business purchase but don’t have the cash right away.
A business credit card enables companies to buy the goods they need to succeed while also giving the company owner the time they may need to pay for it.
A small company owner, like the leaders of significant divisions in bigger firms, may get a business credit card.
Even if it doesn’t appear so at first, a person who does business under their own name and works for themselves can qualify if they can show that their business generates income as a sole proprietorship and that they can manage a credit card responsibly by paying off the balance on time.
Why Get a Business Credit Card?
If their workers have regular costs that they acquire on the company’s behalf, they should also obtain a business credit card. It relieves the company owner of having to buy everything personally while yet allowing them to control what is bought and keep track of their business spending more effectively.
Types of Business Credit Cards
Depending on the sort of company, an applicant may get several types of business credit cards. The following are the two most frequent types of company credit cards:
Small Business Credit Cards
Small company credit cards often allow for a lower number of authorized users and come with cost-monitoring assistance that is confined to one online banking platform (similar to most personal cards).
When opposed to corporate cards, they often qualify for a lesser to the mid-sized credit limit and earn points on more normal workplace costs such as office supplies and certain regular services such as internet or cable.
The most important component, however, is that the small company owner is responsible for paying off any debt, interest, and fees. Furthermore, any benefits from the credit card account are earned by the company owner (called the principal cardholder).
Corporate Credit Cards
Furthermore, in the event of rewards redemption, the firm retains the benefits, not the business owner or any individual cardholder.
How to Compare Business Credit Cards
If you’re looking for business credit cards to help you pay for company costs, you may be wondering how to choose one. Fortunately, there are some common characteristics you may examine to discover the best business credit card for you.
Requirements for Eligibility
It may be simpler than you think to qualify for a company credit card. Yes, you will need to demonstrate that you have a profitable company in Canada. However, your company does not need to have a lengthy, extended credit history, or any credit history at all, to qualify since your personal credit history as the business owner will also be considered.
That being said, your personal credit score will almost certainly be considered, and there will be cards you will and will not qualify for depending on the credit score range required by the credit card issuer.
Depending on your credit score, you may wish to apply for some credit cards while avoiding others. Revenue criteria are similar; some cards need a particular quantity of yearly business revenue before granting access, so consider income requirements as a point of comparison as well.
Business credit cards, like personal credit cards, may include annual fees. How much that cost is on an annual basis might be a point of comparison for anybody seeking the best business credit card.
As with personal credit cards, the higher the annual fee, the more perks, and rewards, but as with personal credit cards, there are some business credit cards available in Canada with no annual fee, so that could always be an option if you’re looking to keep costs reasonable.
Purchase, Balance Transfer, and Cash Advance Interest Rates
The interest rates are perhaps the most important thing to consider when selecting a business credit card, particularly if your company is likely to carry a load often. In addition to interest rates, whether for purchases, balance transfers, or cash advances, there are fees.
Balance transfers normally come with a 3% cost, and if you’re purchasing a lot of products from other nations, you should be aware of the 2.5% fee that comes with overseas transactions.
Furthermore, cash advances include costs for completing them that are generally larger than $10 and 5% of the amount received in advance. You may be seeking business credit cards with lower interest rates to save money, depending on your company’s demands and spending capability.
Credit Limit Available
varied business credit cards, like personal credit cards, may have varied credit limits based on the firm’s credit score and whether it is a credit card for a sole proprietorship, an incorporated business, or a corporation.
Nevertheless, credit is not an exact science, so various issuers may likely grant more or less credit based on the specific combination of factors that constitutes your company’s application status.
As a business owner, you have every right to shop around to other issuers based on the credit limit they can provide your company.
Rewards and Advantages
Aside from interest and fees, perks and bonuses are usually a secondary consideration when choosing a business credit card.
Corporate cards often provide higher incentives than small company cards, although even as a small firm, rewards and advantages differ by card.
Look at what your company spends the most money on and attempt to select a credit card with a high rewards earn rate in that purchasing area.
If your company needs you or your staff to travel regularly, you should look for a credit card that offers a lot of travel benefits as well as travel insurance choices like an emergency medical, trip interruption, and trip cancellation.
Because rewards may make acquiring a company credit card in the first place genuinely worthwhile, they are an important factor to consider when comparing business credit cards.
Expense Tracking Software
If you need an enterprise solution for expense tracking, you’re probably looking for a corporate card, but what an issuer offers within their small business credit card portfolio can still matter, especially since business credit cards are often designed to make your life as a business owner easier when it comes to tracking your expenses.
If you’re looking for a business credit card for this reason, expenditure tracking features should be a top priority. Of course, not all cost-tracking systems are made alike, so the kind of tool you need and its varied features will play a significant role in your decision to choose one business credit card over another.
How to Get a Business Credit Card
Business credit cards in Canada, like personal credit cards, have application restrictions, although those requirements are frequently more stringent.
After meeting the basic eligibility requirements, you’ll be asked for your minimum personal income, minimum family income, minimum company revenue, and, in certain situations, minimum assets under management.
They will next inquire as to whether you are one of the three company kinds stated below:
Sole-proprietorship – An unincorporated business owned and run by a single person. It is the smallest company that may yet be termed a business.
A partnership is a legal or informal agreement between two or more persons to own and run a company, including the allocation of risks, labor, and profits. It is not a legal entity and is extremely simple to set up.
Incorporated — Incorporation is a legal process that legally separates a business from the individuals who run it, allowing owners to limit their liability, more easily transfer their interests, extend their business beyond their own lives, lower their personal tax rate, increase their credibility, and gain easier access to financing.
Following your response to what kind of company you are, you will be asked questions about your business, such as what type of business it is, if it operates outside of Canada, whether it trades in forbidden commodities, and whether it is an import/export business, among other things.
The application will then most likely turn to you as the company owner, including your address, whether you rent or own your house and your personal income. After that, you will be asked to review the terms and conditions of the business credit card issuer as well as the specifics of your application before clicking “submit.”
Pros and Cons of Business Credit Cards
There are a few benefits and drawbacks to having a company credit card that you should be aware of before applying for one.
- Separate your commercial and personal costs.
- More comprehensive protection against fraud and theft of cash.
- Better cost management that personal credit cards can provide.
- You may add more authorized users without paying a charge.
- When it comes to incentives, get bigger welcome bonuses, earn rates, and yearly value.
- Get rewarded for everyday business costs including office supplies, periodic bill payments,
- telecommunications purchases, and more.
- Quick and easy access to funds.
- The ability to establish your company’s credit history.
- When it comes to acquiring and paying for products, there is less administration.
- The possibility of unrestricted employee expenditure.
- The potential to incur debt.
- All credit card purchases must be honored and paid for.
- More vulnerable to deception.
- Charges for interest
- Unpaid bills may cause credit harm.
How Many Credit Cards Should Businesses Get?
If your company is tiny, you should only get as many credit cards as you can keep track of in terms of where the money is going and when payments are due.
Most small company owners have one to three credit cards. If you are a medium-sized firm, you may be able to manage additional credit cards, but only as many as will benefit you and the business.
Some company owners stay organized by paying for separate business costs with multiple business credit cards, particularly if those cards offer a high earning rate for points on that specific purchase category.
Of course, having more credit cards means having more opportunities to fall into debt, so if you or your organization takes on additional credit, exercise prudence and remain disciplined in your spending.
Frequently Asked Questions (FAQs)
What is the purpose of a business credit card?
A business credit card’s objective is to establish a credit profile for future borrowing and to distinguish company costs from personal ones.
What credit score is needed for a Business credit card?
The approval of a business credit card is mostly determined by your personal credit score. Most business cards need strong or outstanding credit, which is defined as a credit score of 690 or above.
How can I build my business credit card fast in Canada?
You can build your business credit in a variety of ways, but the quickest way is to open a business bank account, apply for a business credit card with a low credit limit, and responsibly use that credit card by paying off the balance in full every month, and then apply for more credit as your business grows and your needs change.
These do not have to be additional credit cards, but may also be business loans or commercial mortgages to assist you diversify your company’s credit portfolio.
Can I use my personal credit card for business expenses?
Yes. It is possible to use your personal credit card for company purchases, but it is not encouraged for a number of reasons. The first is that charging company spending on your personal credit card makes tracking business expenses more difficult.
Not only that, but it makes tracking the costs of every individual that works for you more difficult. If you own a business, personal credit cards provide less legal and liability protection than corporate cards.
Furthermore, you may be overlooking other useful advantages and awards that are particularly geared to the requirements of enterprises and company owners.
Many business credit cards, for example, offer greater reward earn rates for office supplies and eating out since the issuers know you’ll be making those purchases regardless as a company owner and want to reward you for your frequent spending in those areas.
Furthermore, personal credit cards do not contribute to the establishment of a business’s credit history.
Can you get a Business credit card with no revenue?
Credit card companies often demand applicants to submit their prior year’s gross yearly income. Issuers may accept personal income and sales predictions in the absence of revenue.