The best business credit cards in Canada for 2024
September 27, 2024
If you’re a business owner looking to make the most of your spending, business credit cards offer incredibly useful benefits: rewards, travel protection, expense management, insurance, and more. Read on to find our selection of the top business credit cards in Canada to consider for your small business or corporation.
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Compare the best business credit cards
The best business credit cards in Canada by category
|
Card name |
Best for |
Annual fee |
| BMO World Elite Business Mastercard | Best rewards | $149 |
|---|---|---|
| BMO CashBack Business Mastercard | Best for no annual fee | $0 |
| American Express® Business Gold Rewards Card | Best for frequent travellers | |
| The Business Platinum Card from American Express® | Best premium travel | $799 |
| American Express Aeroplan Business Reserve credit card | Best Aeroplan credit card | $599 |
| Loop credit card | Best for e-commerce businesses | $0 |
Types of business credit cards
In general, business credit cards are categorized into two categories: small business credit cards and corporate credit cards.
Small business credit cards
As the name suggests, small business credit cards are designed for small business owners. This includes sole proprietors and entrepreneurs, who can use these cards to earn rewards not offered on personal credit cards and enjoy benefits like no foreign exchange fees on overseas purchases. Small business credit cards may also offer expense tracking solutions and a small number of authorized users.
While business owners need to show proof of a registered business entity, small business card applications will be evaluated based on the owner’s personal credit score and income, and the individual business owner is liable for the credit card bill.
Corporate credit cards
Corporate credit cards are designed for larger companies that generate significant revenue. They offer much higher credit limits, allow for more authorized users, and reward businesses for paying for their employees’ business expenses.
Business credit cards vs. personal credit cards
The difference between business and personal credit cards lies in features such as credit limits, rewards and interest terms. We compare the differences in the table below:
Business credit cards |
Personal credit cards |
|
Credit limits |
Business cards may offer higher credit limits to allow for frequent and high-volume purchases | Personal credit cards have lower credit limits |
|---|---|---|
Rewards |
Some of the same rewards as personal cards, but there may be business-specific perks such as higher points earnings on office supplies or the chance to put points back in your business | Rewards catered to individuals based on their shopping preferences, brand loyalty or financial needs. Points are earned on personal expenses |
Interest |
Some business credit cards offer interest-free grace periods of up to 55 days | Personal credit cards usually offer 21 days from your last billing cycle to pay off your card in full |
Card users |
Business credit cards may allow you to add up to 100 additional users so you can give employees their own card. You may be charged a one time fee for additional users, or per additional card | Personal credit cards usually allow you to add a handful of additional users, sometimes for an added fee |
How to compare business credit cards
Whether you’re a small business owner or a finance professional in a large corporation, here’s what to consider when choosing a business credit card.
- Eligibility requirements
Some business cards may evaluate your application on your personal credit score and/or business income.
- Interest rates and annual fees
Make sure the annual fees and interest rates offered by the card meet your needs.
- Credit limit
A higher credit limit allows you to take on more business expenses with less hassle.
- Rewards and benefits
Look for benefits that you and your employees will use most, such as travel insurance or discounts on transportation and advertising costs.
- Welcome offers and bonuses
An attractive welcome offer or tier bonus on your spending can make a card more valuable for your business.
- Tools for expense tracking
Many business credit cards offer tools to help track your employees' spending, saving you time.
FAQ
What is a business credit card?
Business credit cards make it easy to pay for all of your business expenses with one card, making accounting and bookkeeping easier. By having the right business credit card for your needs, you can ensure that you will have the funds you need for everyday business expenses, new projects and unexpected costs that may arise. Almost all of the terms and conditions that apply to a personal credit card also apply to a business credit card.
What are the advantages of using a business credit card?
Business credit cards offer business owners and operators the freedom to conduct business efficiently. Business credit cards typically have higher credit limits than personal credit cards, making it easier to manage your money flow, make major purchases and handle unexpected costs. Depending on the business credit card you choose, the potential rewards attached can also be tailored to your business. For example, if your employees travel a lot for work, you could choose a business credit card that allows employee spending to generate travel rewards for particular hotel chains or airlines, so future stays could be free.
What is the best credit card for small businesses?
The BMO World Elite Business Mastercard should be any small business owner's credit card of choice. This card offers a simple and flexible rewards program, with rewards earned on all purchases and no restrictions on how rewards can be redeemed. Here are some additional features you can expect with this card:
- Generous welcome offer: earn over $1,500 in value! This includes up to 100,000 BMO Rewards Points – that’s a $669 value in the first year.
- Healthy earn rate on everyday business spending and can help business owners streamline their expenses
- Access to exclusive business benefits, including travel insurance, extended warranty, and virtual healthcare access
- Get up to 22 additional cards for employees
Who can qualify for a business credit card?
If you have a business or are a sole proprietor, you can apply for a business credit card. For many business credit cards, you will have to provide proof that your business exists, by providing supporting documents to your potential lender. Documents could include articles of incorporation, your business license, partnership agreement, tax assessments and/or financial statements. If you’re a sole proprietor who operates your business under your own name and is not incorporated, you can still qualify for certain business credit cards.
Can I get a business credit card with bad personal credit in Canada?
Obtaining a business credit card with bad personal credit in Canada can be challening, as many issuers consider an individuals personal credit history when evaluating business credit card applications. However, various banks offer secured and prepaid business credit cards. With this type of card, you will need to provide a cash deposit which typically will become your credit limit.
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