What is the Best Credit Card for Small Businesses in Canada? Our Picks for 2024

Have you started a business in the last few years but are still using your personal credit card to make purchases and transactions? It may be time to get a business credit card.

You may be asking yourself what a business credit card is and how can it help you. In this article, we will take a look at the top credit cards for small businesses. The we and then break down the benefits of business credit cards and how they can help you grow your business while maintaining your personal finances.

Below we’ve compiled a list of the best business credit cards in Canada. Pick the best credit card for your business!

The best small business credit cards:

What are the best credit cards for business in Canada?

Business credit cards come with a wide variety of perks and options. Some focus on mileage and travel points while others focus on cash back. Most issuers provide longer various cards to meet the variety of needs of different businesses.

One of the easiest ways to gauge the best credit card for your business is based on the size of your business as well as its needs. Below we have picked some of the best credit cards provided by some of the most trusted companies in Canada. We have focused on some of the best credit cards overall as well as some of the best Canadian small business credit cards.

What is the best RBC business credit card?

First, for RBC, we have the RBC Business Cash Back Mastercard Card. This card is one of the best credit cards for a small business in Canada looking to grow without accruing any additional costs. With no minimum income, no annual fee and no additional card costs it is one the most affordable cards to acquire. It also gives 1% cash back on purchases as well as purchase protection and extended warranties.

For larger businesses looking for a few more perks, we have the RBC Avion Visa Infinite Business Card. This card is a points card. It has a $175 annual fee and a $60,000 annual income requirement but comes with 35,000 bonus points and 1.25 RBC rewards points for every dollar spent. It also gives access to over 1,200 airport lounges worldwide. The saving potential on this card is greater but so are the costs and income requirements making it a great card for a larger business.

What is the best BMO business credit card?

First, for BMO we also have a cashback card. BMO CashBack Business Mastercard offers 10% cash back on gas, office supplies and cell phone/internet bills for the first 3 months. You will continue to get 1.5% cash back after the offer period ends. That combined with no annual fees and no additional card fees makes it the best BMO small business credit card.

Next, we have a BMO credit card perfect for all your travel needs. The BMO World Elite Business Mastercard offers 70,000 BMO reward points in the first year and will waive the first year's $149 annual fee. You will earn 4 BMO rewards points on gas, office supplies and cell phone/internet bills as well as 1.5 BMO points on every $1 spent. You’ll also get access to over 400 airport lounges worldwide. One of the biggest perks of this card is that you can get up to 22 additional cards so employees can make purchases while earning points. Each of these employee cards is covered by a liability waiver program protecting the company from employee card abuse. This card is perfect for a growing business with multiple employees responsible for making everyday purchases.

What is the best Aeroplan business credit card?

For Aeroplan credit cards, we like the American Express Aeroplan Business Reserve Card. This card has a higher annual fee of $599 a year but comes with great benefits to match. It has an opening offer of 90,000 Aeroplan points after you spend $7,000 within the first three months of membership. Plus, you earn 10x points on all eligible purchases with Air Canada for the first 6 months up to 20,000 points. This card is good for a large or growing company with regular travel costs.

What is the best TD business credit card?

TD also offers a range of cards from travel to cash back cards. The TD Business Travel Visa Card stands out as one of the best travel business credit cards. With an annual fee of $149, it has an intro offer of up to 150,000 TD rewards points and $247 in annual rebates for the first year. These benefits require a minimum spending amount and requirements to be met but for a business, this can be thousands of dollars in savings.

What is the best CIBC business credit card?

For CIBC we have another Aeroplan card. The CIBC Aeroplan Visa Business Card is a more affordable travel card. With a $180 annual fee, this card has a lower cost but still offers mileage benefits and an intro offer. New cardholders can get up to 60,000 Aeroplan points when meeting the requirements. This card also a Maple leaf lounge pass, a buddy pass and various travel insurances.

What is the best Scotiabank business credit card?

For Scotiabank business credit cards we are going to look at one of their more basic cards. The ScotiaLine for Business VISA credit card has no annual fee and is one of the best small business credit cards. It has a credit limit starting at $5,000 and up to $500,000, automatic extended warranties for 90 days on purchases, free supplementary cards and cheques and 21 interest-free grace periods. It’s also one of the best-secured credit cards in Canada. With a secured card the interest rate can be as low as prime + 1%. This Scotia business credit card is great for a smaller or growing business.

What is a business credit card?

A business credit card is similar to a personal credit card, but instead of being issued to a personal bank account, it can be issued to a business account. Getting a business credit card depends on the business’s credit score instead of the individual’s. This allows for a greater credit limit and higher rewards on business purchases. It may include tools to help manage business spending and employee expenses.

Why should I get a business credit card?

There are many benefits to getting a business credit card both for your business and for your personal finances. Below we’ve listed our top reasons for getting a business credit card:

• Businesses have their own credit rating and when starting out, a new business will have no credit history. This can make it more difficult for their owners to apply for long-term loans in order to expand and grow their new business. Business credit cards offer a simple and easy way to grow your credit history while improving your credit rating.
• Similar to the first benefit, as your credit ratings improve a business credit card will offer a much larger credit limit than a personal card. This makes large purchases such as buying equipment and bulk resources much easier on a business credit card than a personal card.
• Keeping your business and personal finances separate protects you and your business. By registering your business as a corporation, or even as a sole proprietor business with its own bank account, you separate your personal credit score from your business credit rating. This will help in the event that something lowers your personal credit it won't affect your business. Should you have a corporation and it declares bankruptcy your personal assets may be protected.
• Creating a business credit card will also help to separate your personal spending from your business expenses. This will simplify your accounting and can help with end-of-the-year taxes.
• One of the biggest benefits is extended interest-free periods. With personal credit cards, you are required to make payments every month but many business cards offer extended payback periods on larger purchases.
• Business credit cards can also offer additional card copies so that employees can make necessary purchases on the company's behalf. For example, the BMO World Elite Business card offers up to 22 additional cards while its liability waiver program protects you against employee card abuse. This means you as a business owner can delegate tasks without worrying about exposing your business’s finances.

These are just some of the benefits of business credit cards. Many cards offer more specific benefits such as travel benefits, fraud protection, liability protection and even custom spending limits on individual cards. All these benefits make it easier to spend and manage the business’s finances.

How to apply for a business credit card

Applying for a business credit card is a straightforward process that is fairly easy. Most credit card issues have it streamlined online to help potential clients such as yourself.

1. First, you’ll need to create your business. There are several business types such as sole proprietorships, partnerships, corporations and cooperatives. A sole proprietor is the easiest to qualify as any freelance or online seller can qualify. We won’t go into detail here but if you can show an income you can qualify as a business.
2. Now that you have a business you need to establish credit. If your business is brand new you should put and phone and utilities associated with the business under the business's name. This will automatically start creating credit. If this is your first business credit card the credit card provider will look at your personal credit before making a decision.
3. Next and most important is to research business credit cards. There are as many different business credit cards as there are personal credit cards. Some are good for travel, some are good for cash back and some are good for bulk purchases. Make sure to find the one that is right for you. Also, remember the size of your business. If you are just starting out you don’t want a card with high spending requirements and yearly fees. Wait until you grow and that card will be more suited to you later on.
4. The last step is to apply and wait. Most websites will walk you through the application process so you can do it from the comfort of your home or office.

You will need the following:

• Your name, residential status and address.
• Your Social Insurance Number SIN.
• Email address and phone number.
• Financial information.
• Business name, mailing address and the number of employees.
• Business revenue and business history
• Your Business Number or Social Insurance Number.

Once you’ve filled out the application form make sure all information is correct before submitting it. Some applications will be approved or denied within minutes but it can take days or weeks depending on several factors. After approval, it typically takes 10 business days to get a business credit card.

Can I get a prepaid business credit card in Canada?

You can get a prepaid business credit card and there are several benefits. First off, it allows you to control your money and give employees access to only a certain amount of money. It also prevents your business from going into debt from overspending. Some of the best prepaid business credit cards can be linked to an online account allowing you to transfer specific amounts to different prepaid cards. This is perfect for giving employees spending budgets for travel expenses or material costs without giving them access to the entire account.

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Alexandre Desoutter

Alexandre Desoutter has been working as editor-in-chief and head of press relations at HelloSafe since June 2020. A graduate of Sciences Po Grenoble, he worked as a journalist for several years in French media, and continues to collaborate as a as a contributor to several publications.