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Compare business credit cards vs. business loans

Compare the features and costs of a business credit card and a business loan so you can make the right choice for your company.

Both business credit cards and business loans are popular financing options for many companies – but there are several key differences between the two. To find the better option for your business’s needs, it helps to compare the two side by side and examine how the differences between the two products will affect your bottom line.

The defining features of business loans vs. credit cards

Business credit cards are a lot like personal credit cards: you get a revolving line of credit for ongoing access to funds. Business loans are sometimes tailored for a specific need, such as buying essential equipment, and are usually paid to you as a single lump sum with fixed monthly repayments.

Business credit cardBusiness term loan
Funding amountA specified limit, usually up to $100,000, with flexible, ongoing access to funds.Business financing up to $1.25 million – sometimes more – provided in one lump sum.
RepaymentLow minimum monthly repayments.A set repayment schedule with monthly payments and a specified pay off date.
EligibilityLess requirements than a business loan, but typically requires good personal credit.Generally you must be in business for at least a year, have a monthly revenue of at least $5,000 and have good personal credit.
Starting APRUsually around 19.99%, but can be as low as 8.99%.Can be as low as 4%.
FeesAnnual fees, late repayment fees, foreign transaction fees and more may apply.Application fees, origination fees, late repayment fees and more may apply.
Other featuresSign-up bonuses, rewards points, miles or cash back, complimentary insurance, access to business tools.Ability to sync to your online accounting software.
AdvantagesFlexible funding, continuously available money and bonus features.Many different loan options, can be closely tailored to your borrowing needs.
DisadvantagesLower funding amount, higher APR.Less additional perks, stricter requirements.

Compare business loans

Name Product Interest Rate Loan Amount Loan Term Minimum Revenue Minimum Time in Business Loans Offered
SharpShooter Funding Business Loan
Prime pricing from 9.00%
$500 - $250,000
6 - 60 months
$10,000 /month
100 days
Unsecured Term, Merchant Cash Advance, Invoice Factoring
To be eligible, you must have been in business for at least 100 days with a minimum of $10,000 in monthly deposits.

SharpShooter provides capital to small businesses that are underserved by banks and credit unions. It measures overall business health and potential rather than focusing strictly on traditional metrics. Fill out a simple application and get pre-approved in minutes. Receive your funds within 24 hours.
Swoop Funding Business Loan
4.00% - 25.00%
$1,000 - $5,000,000
3 - 60 months
$10,000 /month
24 months
Term, MCA, LOC & more
To be eligible, you must have been in business for at least 24 months and have a minimum of $100,000 in annual revenue.

Swoop partners with banks and alternative lenders to match your business with the right funding options. Register for free and browse your offers without affecting your credit score.
Lending Loop Business Loan
Starting at 4.96%
$10,000 - $500,000
3 - 60 months
$8,500 /month
12 months
P2P
To be eligible, you must have been in business for at least 12 months and have a minimum of $100,000 in annual revenue.

Lending Loop is Canada’s first regulated peer-to-peer lending platform. Complete an application in 5 minutes. Once you accept your loan offer, investors will begin to fund your loan on the marketplace. Your loan will be transferred to your bank account when it is fully funded.
OnDeck Business Loan
8.00% – 29.00%
$5,000 - $300,000
6 - 18 months
$10,000 /month
6 months
Secured Term, Line of Credit, Merchant Cash Advance
To be eligible, you must have been in business for at least 6 months with a minimum monthly revenue of $10,000.

OnDeck offers fast and simple financing. Apply in less than 10 minutes with your basic business information and see your loan offers without hurting your credit score. Get approved within 1 business day, and choose your term, amount and payback schedule once approved.
Loans Canada Business Loan
Prime Pricing from 9.00%
$2,000 - $350,000
3 - 60 months
$4,166 /month
100 days
Unsecured Term
To be eligible, you must have been in business for at least 100 days, have a credit score of 410+ and show a minimum of $4,166 in monthly deposits ($50,000/year).

Loans Canada connects Canadian small business owners to lenders offering financing up to $350,000. Complete one simple online application and get matched with your loan options.
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Is a business credit card worth it?

Business credit cards offer a number of advantages in comparison to typical business loans – mostly in the form of extra features. How extensively you plan on utilizing these features often answers the question of whether or not a business credit card is worth it for you.

Pros to using a business credit card include:

  • Avoid interest altogether by paying off your balance in full before the end of the grace period.
  • Track your business spending more easily by seeing all expenses in one place.
  • Access various account management and financial analysis tools.
  • Give business credit cards to employees and manage the cards through one account.
  • Enjoy rewards like points, miles or cash back, and complimentary insurance.
  • Build your business credit score by using the card wisely.

There are also downsides to consider:

  • APRs can be high, with some over 19.99%.
  • The cost of missing multiple repayments can rapidly escalate.
  • Paying only the minimum can leave you accruing interest quickly.
  • Some business credit cards charge an annual fee, which you’ll have to pay each year you keep the card account open.
  • If you depend on this credit to pay for business operations, then you might become abruptly stuck when you reach your credit limit.

Want ongoing access to funds but don’t want a credit card? Learn about business lines of credit

Compare business credit cards

Name Product Purchase Interest Rate Cash Advance Rate Annual Fee Minimum Income Welcome Offer
American Express Business Edge Card
19.99%
21.99%
$99
N/A
Earn up to 57,000 Membership Rewards points in your first year. Earn 45,000 Welcome Bonus points when you charge $5,000 in purchases to your Card in your first three months, and earn 1,000 Membership Rewards points each month (a total of 12,000 annually) when you spend a minimum of $3,000 on eligible purchases.
American Express Aeroplan Business Reserve Card
16.99%
21.99%
$599
N/A
Earn up to 90,000 Aeroplan points and a bonus Buddy Pass. Plus, apply for an American Express Aeroplan Business Reserve Card by October 1, 2021 and spend at least $10,000 in qualifying net purchases by November 30, 2021 and you’ll earn, step up, or jump start your Aeroplan Elite Status. Earn up to $2,900 or more in value within your first year.
BMO Rewards Business Mastercard
14.99%
22.99%
$0 annual fee for the first year ($120 thereafter)
N/A
Get 50,000 points and the $120 annual fee waived in the first year.
BMO Air Miles Business Mastercard
19.99%
22.99%
$120
N/A
Get up to 3,000 AIR MILES Bonus Miles ($310 towards your purchases with AIR MILES Cash).
BMO Cashback Business Mastercard
19.99%
22.99%
$0
N/A
Get 10% cash back on gas, office supplies, cell phone bills and internet bills for 3 months.
BMO Air Miles No-Fee Business Mastercard
19.99%
22.99%
$0
N/A
Get 1,000 AIR MILES Bonus Miles (over $100 towards your purchases with AIR MILES Cash).
American Express AIR MILES for Business Card
N/A
N/A
$180
N/A
Earn a Welcome Bonus of 2,000 AIR MILES when you spend at least $5,000 on eligible purchases within the first three months
Business Platinum Card from American Express
N/A
N/A
$499
N/A
Earn a Welcome Bonus of 75,000 Membership Rewards points when you charge $7,000 in purchases to your Card in your first three months of Cardmembership.
Marriott Bonvoy Business American Express Card
19.99%
21.99%
$150
N/A
Earn a Welcome Bonus of up to 85,000 Marriott Bonvoy points. Plus, earn 5 points for every $1 spent on eligible gas, dining & travel (excluding lodging) for the first 3 months.
American Express Business Gold Rewards Card
N/A
N/A
$250
N/A
Earn a Welcome Bonus of 50,000 Membership Rewards points when you spend at least $5,000 on eligible purchases within the first three months.
American Express AIR MILES Gold Business Card
19.99%
21.99%
$0
N/A
Earn a Welcome Bonus of 150 AIR MILES when you spend at least $1,000 in eligible purchases within the first three months
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Should you get a business loan or a business credit card?

A business credit card can be a good choice if:

  • You’re looking for an all-round business tool with built-in borrowing functionality.
  • You need quick and easy access to credit.
  • You need to fund ongoing purchases and expenses, and you’re able to repay what you use each month.
  • You want to take full advantage of the extra features and benefits – like earning and redeeming points, cash back or miles and using any available insurance coverage.

A business loan can be a good choice if:

  • Your number one priority is getting financing for large expenses like opening a new location or purchasing new equipment.
  • You need access to a larger amount of financing.
  • You want to borrow only the amount you need without locking yourself into a potentially expensive account.
  • You want a tailored repayment plan.

Be sure to consider your business’s current financing needs as well as what your business might need in the future when deciding on a business loan or a credit card. Remember that if it meets your needs and budget, you can utilize both a loan and a credit card.

Compare business loans to other financing options

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