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A business credit card can be your best friend when it comes to covering your business expenses. But because there are so many cards on the market catering to small businesses, we’ve created this guide to help you compare features of the best startup business credit cards for your needs and financial situation.
The business credit cards included in this Finder guide are selected based on information provided to Finder as well as analysis of business credit card providers in the Canadian marketplace. This list does not represent the entire Canadian market for business credit cards. When assessing credit card accounts, we consider key factors such as account fees, ease of use, accessibility, transaction fees and rewards. Since no single credit card can be considered ideal for all Canadian business owners, we strongly recommend you compare all account options before selecting and opening any credit card account.
With an appealing signup bonus and a $0 annual fee, the BMO Cashback Business Mastercard can be a great choice if you're looking to minimize expenses. Earn 1.5% cash back on eligible gas purchases, office supplies and on cell phone and internet recurring payments, earn 1.75% cash back at participating Shell stations, and earn 0.75% on all other eligible card purchases. Get 10% cash back on gas, office supplies, cell phone bills and internet bills for 3 months Valid until December 31, 2023. Plus, get a 0.00% introductory interest rate on balance transfers for 9 months with a 3% transfer fee. Valid until March 31, 2024. Plus, this credit card can be used at Costco locations across Canada.
This card's annual fee is $0.
Earn 1.5% cash back on eligible gas purchases, office supplies and on cell phone and internet recurring payments, earn 1.75% cash back at participating Shell stations, and earn 0.75% on all other eligible card purchases.
Enjoy 15% off admission to Cirque du Soleil shows touring Canada and 20% off resident shows in Las Vegas.
Get 10% cash back on gas, office supplies, cell phone bills and internet bills for 3 months Valid until December 31, 2023. Plus, get a 0.00% introductory interest rate on balance transfers for 9 months with a 3% transfer fee. Valid until March 31, 2024.
Eligible items charged to your card can receive purchase protection and an extended manufacturer's warranty.
You can use your BMO card at Costco locations across Canada.
You won't get many of the benefits that come with other business credit cards on the market such as travel insurance, expense management tools and rewards points that can be redeemed for free flights and hotel stays.
You'll have to pay a 22.99% interest rate on any cash advances.
Annual Fee
$0
Purchase APR
19.99%
Cash Advance Rate
22.99%
Balance transfer APR
0% intro for the first 9 months (then 22.99% )
Welcome offer
Get 10% cash back on gas, office supplies, cell phone bills and internet bills for 3 months Valid until December 31, 2023. Plus, get a 0.00% introductory interest rate on balance transfers for 9 months with a 3% transfer fee. Valid until March 31, 2024.
Rewards
Earn 1.5% cash back on eligible gas purchases, office supplies and on cell phone and internet recurring payments, earn 1.75% cash back at participating Shell stations, and earn 0.75% on all other eligible card purchases.
Best for limiting debt: American Express Business Gold Rewards Card
Although the American Express Business Gold Rewards Card has an annual fee of $199 it comes with a range of benefits for businesses. Earn 1 Membership Rewards point for every $1 spent on purchases.
Earn 1 Membership Rewards point for every $1 spent on purchases..
Your credit limit grows if you make payments on time and maintain a good credit history.
Earn up to 110,000 Membership Rewards points. Earn a Welcome Bonus of 70,000 points after spending $5,000 in purchases within the first 3 months. Plus, earn 10,000 bonus points when you charge $20,000 in net purchases to your card each calendar quarter (that's a total of 40,000 points a year)..
Get a one class car upgrade, additional driver fee waiver and up to 10% discount on car rental rates for Hertz Gold Plus Rewards® members at participating Hertz locations (T&C's apply). Plus, get complimentary Car Rental Theft and Damage Insurance (MSRP of up to $85,000).
Enjoy an interest-free period of up to 55 days.
Redeem your points for statement credit, merchandise, gift cards, flights and more. You can also transfer points to other eligible frequent flyer programs.
This card has an annual fee of $199.
Any additional cards will cost $50 annually.
Annual Fee
$199
Purchase APR
N/A
Cash Advance Rate
N/A
Balance transfer APR
N/A
Welcome offer
Earn up to 110,000 Membership Rewards points. Earn a Welcome Bonus of 70,000 points after spending $5,000 in purchases within the first 3 months. Plus, earn 10,000 bonus points when you charge $20,000 in net purchases to your card each calendar quarter (that's a total of 40,000 points a year).
Rewards
Earn 1 Membership Rewards point for every $1 spent on purchases.
Pros and cons of startup business credit cards
Pros
Access to funds
Earn rewards on purchases
Get low intro APR period on purchases
Build business credit
Track employee spending
Cons
Could damage your personal credit in case of delinquency
You may be personally liable for the company debt
Credit limit may not be enough
Could pay an annual fee
How to compare startup business credit cards
To choose the best business credit card for your startup, compare these features:
Charge card vs credit card. You’ll need to decide whether a credit card or a charge card is right for your startup business. A charge card can be a handy way to keep out of debt, since you’ll need to pay off the balance in full each month, but a credit card can be helpful when you need extra time to cover the balance in full.
Unsecured, secured or prepaid card. There are plenty of unsecured business credit cards on the market that offer strong perks and rewards. If you’re a startup business with no or low credit however, a secured or prepaid card may be all that you’re eligible for. These two types of business cards aren’t typically listed online, so you’ll need to contact a provider to find out if they offer secured and prepaid business cards.
Annual fee. When cash is tight, you might not want the expense of a credit card annual fee. There are a couple of no annual fee startup business cards on the market, though you’ll earn more powerful rewards with cards that charge an annual fee.
APRs. Interest rates are important, especially if you think you’ll be carrying a balance from month to month. Few business credit cards have low APRs, so your choices may be limited.
Rewards. A card with strong rewards can pay for itself. If your card has tiered rewards, check that your startup has significant expenses in the right categories. If your expenses are spread evenly throughout many categories, you might get more out of a flat-rate rewards card.
Interest-free period. Planning on carrying a balance between billing cycles? A longer interest-free period can come in handy and help you hold onto your money for a little bit longer.
Should I get a startup business credit card or use my personal card?
There are plenty of benefits to using a business card instead of a personal card. A business card can help you separate your personal spending from your business spending. While it may be tempting to rely on your personal credit card for business expenses — especially when you’re just starting out — this can have several unintended consequences. For example, separating your personal spending from your business spending can help you easily differentiate expenses and sort deductions come tax season.
Plus, a separate credit card for your business helps protect your personal assets if your business is incorporated and you find yourself facing a lawsuit. And even if your business isn’t entirely official, a business card offers other perks too:
Can I get a business card before my company is official?
Yes. In fact, freelancers and private contractors are eligible for business credit cards as long as they can prove their income. While different card providers have different eligibility criteria, you should be prepared to offer the following information when you apply for a business credit card:
Name of your business
Industry type
Business ID number
Time in business
Number of employees
Annual revenue
Estimated monthly expenses
Total annual income
Social Insurance Number
Personal credit history
When should startups upgrade their credit cards?
What’s suitable for your business in its infancy may not work long-term — especially if your business experiences rapid growth or a sudden change in trajectory. One reason you may want to consider swapping card providers is if your business has outgrown your current card’s credit limit. Or perhaps your business chequing account is at another bank and there are perks or incentives for combining your accounts.
A practical way to evaluate whether your current card serves the needs of your company is by reviewing your business expenses and spending habits. Does your current card offer perks and rewards that benefit your business? Would it be possible to snag a lower APR by switching providers?
Just because a particular card worked for your startup doesn’t mean it will continue to work for your business two, three, five or ten years down the road – so don’t be afraid to switch it up.
Most small business credit card providers require you to personally guarantee the debt you accrue on your business card. It's often listed in your cards terms and conditions as "Joint and Several Liability." For that reason, it's a good idea to only spend as much as you can personally pay off.
With a charge card, you must pay off your balance in full each month. That differs from a credit card, which allows you to carry a balance from month to month.
Yes, your APR will be stated in the terms and conditions before you apply for the card.
If you have no or low credit and are not eligible for an unsecured business card, you may be interested in applying for a prepaid or secured business card. Providers may not advertise either of these types of cards online, which means you'll need to contact the provider directly and ask if these cards are offered. Learn more about secured business credit cards in our guide.
Kevin Chen is a personal finance expert and a former writer at Finder. His expertise has been featured in CNN, U.S. News and World Report, Lifehacker and CreditCards.com, among other top media.
Ensure your personal assets remain secure while still getting your business the credit it needs.
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finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
