Your business is in full swing and you’re ready for a business credit card. The only problem is, you’re not quite sure how to get one.
Fear not – applying for a business card is fairly straightforward. And there are myriad benefits of having one, such as separating your personal and business finances and having access to expense-management tools.
There’s a low bar to jump for qualifying as a business. You’re eligible if you’ve formed one of Canada’s 4 business structures:
You can qualify as a sole proprietor if you make money through freelance work — for example, as a photographer-for-hire or an Amazon seller. Just make sure you’ve registered your business and have documentation to prove it.
If you have a partnership or corporation, you’ll enter your Business Number (BN) while applying for your card. If you’re applying as a sole proprietor, you’ll simply enter your Social Insurance Number (SIN). Provinces may have different rules regarding tax identification for cooperatives.
Every provider will check your personal and business credit. Your personal credit weighs most on the provider’s decision, but having strong business credit will increase your odds of approval.
To build business credit, start by obtaining vendor credit. Put your phone and utility bill under your business name. And ask your vendors — such as your office supply store or advertising agency — if you can start small lines of credit with them. You might also want to apply for a business loan. As you make consistent on-time payments of at least the minimum amount due, you’ll build your business credit.
There are many excellent cards on the market, and the perfect pick will depend on your specific needs. Here are a few key factors that’ll help you choose between different cards.
Getting a business credit card can help you streamline your business finances and earn rewards on your purchases. Make sure you compare multiple options until you find the right fit for your wallet.
Once you’ve picked a business card, it’s time to apply. You’ll need to provide information about yourself, including:
You’ll also need to provide information about your business, including:
Fill out the application form, request employee cards if needed and agree to the provider’s terms. The last step is to review your application and submit it.
Most major providers offer automated applications, so you’ll likely receive a decision within minutes. If there are issues with your application, you may need to wait a few business days to a few weeks to hear back.
After you’re approved, you’ll often receive your card within 10 business days. However, actual delivery may times vary between providers.
There can be many advantages to getting a business card, including:
If your business is denied for a credit card, don’t lose hope. There are a few things you can do to increase your chances of getting one soon or in the future.
Most of the time, the answer is yes. Your provider will probably ask you to personally guarantee your debt no matter your business structure. For that reason, it’s a good idea not to charge more than you can personally pay off. But there are some credit cards without a personal guarantee.
Applying for a business credit card can be very simple. If you’ve decided on a business structure, it’s a matter of comparing different business credit cards and finding the best fit. When you’ve settled on a card, you can easily apply for it on the provider’s website.
Earn cashback, pay no FX fees and track your receipts and spending all in one place with the innovative Float business card.
Earn up to 4% cashback, pay no foreign transaction fees and get online rebates with this multi-currency business card.
Earn Aeroplan points when you spend money on your business with this premium credit card.
You can deduct credit card fees if you use your credit card for business purposes, not for personal reasons. Learn more in our helpful guide.
Get access to a secured business credit card by providing collateral and start building your credit while growing your company.
A step-by-step guide to establishing business credit, plus how to check your credit rating at the three major business credit bureaus.
With no personal or business credit, your chances of getting an unsecured business card could be slim – but you’ve got other financing options.
Ensure your personal assets remain secure while still getting your business the credit it needs.
Business credit cards typically offer benefits that are helpful to startups. Compare some of the top credit cards here.
