Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Finding a credit card that meets the needs of your small business can take some time. This is because you’ll want to search for the card that offers the lowest annual fee and the best balance of benefits and rewards. Find out more about why you might want to sign up for a business credit card and learn how to compare cards to find the best deal. Purchase interest rate Apply today and get 10% cash back on gas, office supplies, cell phone bills and internet bills for the first 3 months.BMO Cashback Business Mastercard
BMO Cashback Business Mastercard
Eligibility criteria, terms and conditions, fees and charges apply
19.99 %
APR
BMO Cashback Business Mastercard
There are a number of business credit cards that set themselves apart from their competitors in Canada. Check out some of our top picks below and read reviews for each card by clicking on the link.
| Best for fee-free credit cards | BMO Cashback Business Mastercard RBC Business Cash Back Mastercard TD Business Cash Back Visa Card |
| Best for high return on rewards | RBC Avion Visa Infinite Business Card |
| Best for generous welcome bonus | BMO Rewards Business Mastercard TD Business Travel Visa Card |
| Best for frequent flyer miles | American Express Air Miles for Business Card |
| Best for low interest | TD Business Select Rate Visa Card |
| Best for travel benefits | Scotiabank Passport Visa Infinite Business Card |
Business credit cards come as fee-free or premium cards and are usually reserved for sole proprietors or small businesses. They are very similar to personal cards in the way that you spend money. The main difference is that they often come with benefits and features that are tailor-made for businesses.
For example, some cards offer low interest rates and high maximum spending limits to accommodate large purchases. Others come with a large welcome bonus and offer a high return on rewards for business expenses such as office supplies, travel or dining out. Most cards will also allow you to take out multiple cards at once to distribute to employees.
Aside from your run-of-the-mill business credit cards, there are two other types of business cards that you may want to consider in certain situations:
The biggest benefit of business cards is that they allow you to track all of the money you spend on your business account separately from what you spend in your personal life. Many business cards also come with budgeting tools to help you manage your finances throughout the year. This can be a huge advantage when it comes to tax time.
Having a business credit card can also be a good idea if you want business-specific rewards and benefits. These include low interest rates, high credit limits, longer repayment periods for purchases and a higher return on points or cash back for business expenses.
Anyone who owns or operates a for-profit business may be able to qualify for a small business credit card. This includes businesses that have multiple employees and generate significant amounts of revenue. It also includes sole proprietorships and businesses that are just starting out and don’t make much money yet.
You’ll typically need to have a decent personal or business credit score to get approved for a business credit card. This shows the bank that you’re likely to pay back your debts rather than default on payments. This is especially important for business cards since they often come with much higher credit limits than typical credit cards.
It’s also important to note that with business credit cards, you can be held personally responsible for any debt that your company racks up. This is something to keep in mind before you sign up for a business card instead of an alternative form of credit such as a business loan or line of credit.
Unlike other forms of business debt, you will typically be held personally responsible for any debt your company generates with a credit card. This is because business cards don’t often abide by “limited liability” clauses that restrict debt to the company itself rather than to its owners.
This means that you’ll usually need to sign a personal guarantee stating that you agree to take on any business credit card debt your company owes. If you would rather not go this route, you may want to look into other options for business credit.
When you’re deciding which business credit card to use, you might want to compare some of the following features to find the best fit:
You’ll follow the same process to apply for a business credit card as you would to apply for a personal card. Follow these steps to get started:
There are many benefits to choosing a business credit card to finance your business. These include the following:
There are also a couple of drawbacks to consider with business cards:
A low business APR card lets you make purchases with your card and pay very low (or sometimes no) interest for a period of time. In some cases, this type of card will offer an intro APR on balance transfers as well.
How can these cards help?
If your business is in a cash crunch, a low business APR card can help you spend on necessary expenses without accruing interest.
What to watch out for
With a business balance transfer card, you can move debt to the card and pay no interest for a period of time. In some cases, the card will also offer an intro APR on purchases as well.
How can these cards help?
If you’re currently paying high interest on credit card debt, you can move that debt to a card with a low balance transfer intro APR. Then, you can pay off that debt over time without worrying about interest.
If your issuer allows it, you can move debt from other sources such as loans.
What to watch out for
Issuers of these cards often give generous starting credit limits and may be willing to raise your limits substantially. For more information, check out our guide to high-limit business credit cards.
How can these cards help?
High limit credit cards can help you make essential purchases — and potentially pay vendors — when cash is tight. With a higher credit limit, you have more room to put expenses on your card.
What to watch out for
A no-annual-fee business card requires no initial fee to open an account. Oftentimes, you’ll also be able to open employee cards at no cost.
How can these cards help?
These cards can help if you don’t need anything fancy — such as rewards or travel benefits — but you want a simple card that lets you start using credit. Some no-annual-fee business cards even offer rewards.
What to watch out for
With a no-personal-guarantee card, you won’t be personally liable for your credit card debt in case of business failure.
How can these cards help?
In an uncertain economic time, you might be wary about committing your personal assets to back your credit card debt. A card with no personal guarantee can help you decrease the pressure — at least slightly — while you steer your business.
What to watch out for
Rewards credit cards for businesses pay cash back, points or miles as you make purchases. They usually also offer signup bonuses that give you a large haul of rewards after you meet spending requirements.
How can these cards help?
While cash back might not produce significant revenue, they can give you extra capital to pay off certain expenses. For example, if your business often spends on certain office supplies that fall within a rewards category, you can collect points that may be helpful after this downturn ends. If your card offers a signup bonus, you could collect a large amount of cash back, points or miles.
Altogether, the additional rewards can help you make necessary expenditures for your business.
What to watch out for
Business credit cards can help you track business expenses separately from your personal finances, which can be very useful when you file your taxes. These types of credit cards can also be beneficial because they let you earn rewards and benefits that are tailor-made to businesses. Just keep in mind that unlike other forms of business credit, you could be held personally liable for any business credit card debt your company racks up.
Earn Aeroplan points when you spend money on your business with this premium credit card.
Keep your credit utilization low and get access to enough credit each month with a high credit limit business credit card.
Here’s what you need to know before you upgrade from a small business card to a corporate credit card.
Compare the features and fees of a business line of credit and a business credit card to determine which might be better for your small business.
Travel in style and enjoy the benefits of a luxury business credit card.
Discover the advantages of using a business credit card and find out if a business card is the right choice for you and your company.
Compare a range of business credit cards with complimentary travel insurance so you can save both time and money on your work expenses.
Apply for your next business credit card in 4 steps.
Find out how a business balance transfer credit card can help you consolidate debt, improve cash flow and save on interest fees.
Get a platinum business card if you want premium benefits like airport lounge access, travel insurance and concierge services.
