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Review: BMO Small Business Credit Cards

In the era of the gig economy, more and more Canadians are operating their own businesses or acting as independent contractors — either as a supplement to a full-time job, or as their sole source of income.

By 2020, Intuit predicts that 40% of American workers could be subject to the gig economy. For the self-employed, the line between business and personal finances can become blurred — especially if you don’t have a business chequing account or a business credit card.

A business credit card is a great way to keep your personal and business finances separate, but it works a little differently than a personal credit card. For example, you may need to sign a personal guarantee for your business credit card, and the credit limit will probably be much higher. The rewards you’ll earn will also be slightly different, as will the insurance protections offered and the payment terms.

If you’re considering adding a business credit card to your business’s financial arsenal, we’ve reviewed four of BMO’s top credit cards for small businesses.

Best cash back business credit card

If you’re looking for a business credit card that lets you earn cash back, the BMO CashBack Business Mastercard is the credit card for you. This no annual fee credit card allows you to earn cash back specifically targeted for business spending.

With this credit card, you’ll earn 1.5% cash back on gas, office supplies and cell phone and internet bills. As a welcome offer, you’ll earn 6% cash back in these categories for the first four months of cardmembership.

BMO CashBack® Business Mastercard®* - Card details

  • No annual fee
  • Welcome offer: get 6% cash back on gas, office supplies, and cell phone/internet bills
  • After welcome offer ends: earn 1.25% cash back on gas, office supplies, and cell phone/internet bills
  • Earn 1.75% cash back at Shell
  • Earn 0.75% cash back on all other purchases

This credit card also offers 1.75% cash back on purchases at Shell gas stations, and 0.75% cash back on all other purchases. The grace period for this credit card is longer than the typical 21 days offered by most personal credit cards, clocking in at 25 days. The longer grace period is ideal if you are using your credit card for purchases that you will then invoice a client for since it reduces the likelihood of paying interest on those purchases.

The BMO Cashback Business Mastercard allows you to issue employee credit cards, further bolstering your cash back earning power, and their built-in liability waiver program protects you against employee card abuse. Finally, as a Mastercard, this credit card can be used at Costco locations across Canada — perfect for the bulk buying that is so common in small businesses.

Best BMO rewards points business credit card

If cash back isn’t your preferred type of reward, you should consider the BMO Rewards Business Mastercard. This business credit card allows you to earn BMO Rewards points which you can redeem for electronics, gift cards, travel and more. The card’s annual fee is $120, and is waived in the first year.

BMO Rewards® Business Mastercard®* - Card details

  • Annual fee: $120 (waived for first year)
  • Earn 3 BMO Rewards points for every $1 spent on gas, office supplies, and cell phone/internet
  • Earn 1.5 points per dollar on everything else
  • Welcome offer: get 35,000 bonus points if you spend $5,000 in the first 3 months

Find your perfect credit card in under 60 seconds - No SIN required

  1. Tell us a bit about yourself

    Answer some questions so we can personalize our recommendations - this won't impact your credit score

  2. Check your eligibility

    We confirm your eligibility with our partner, TransUnion. This will be a ‘soft credit check’ which you can see but lenders cannot

  3. Find your perfect matches

    We show you the cards you’re most likely to want and most likely to get

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The final word

As a business owner and die-hard cash back lover, my favourite credit card in this lineup is the BMO CashBack Business Mastercard, but each credit card has their unique benefits. Depending on your business needs, any of the two credit cards above could be an excellent choice.

Photo:Matthew Henry via Burst

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