A business credit card is a credit card designed specifically for businesses and business owners. It allows businesses to make purchases and manage expenses, while also providing various benefits such as rewards, cashback, travel perks, and other features that are tailored to business needs.

Unlike personal credit cards, business credit cards typically offer higher credit limits, as well as more features and benefits that are designed to help businesses manage their finances and cash flow. Business credit cards can be used to pay for various expenses, such as office supplies, travel expenses, equipment purchases, and other business-related expenses.

In addition to helping businesses manage their finances, business credit cards can also help businesses build their credit scores and establish creditworthiness. By making on-time payments and managing their credit responsibly, businesses can improve their credit scores and qualify for better rates and terms on future loans or credit products.

Best business credit cards in Canada

There are many business credit cards available in Canada, each with their own benefits and rewards. Here are some of the best business credit cards in Canada:

1. American Express Business Gold Rewards Card: This card offers flexible rewards points that can be redeemed for travel, merchandise, gift cards, and more. The card also comes with travel insurance, purchase protection, and 24/7 customer service.
2. BMO Rewards Business Mastercard: This card offers a flexible rewards program, as well as travel insurance, car rental insurance, and extended warranty coverage. The card also has no annual fee.
3. TD Aeroplan Visa Business Card: This card offers rewards points that can be redeemed for travel and merchandise. The card also comes with travel insurance, car rental insurance, and purchase protection.
4. RBC Avion Visa Business Card: This card offers flexible rewards points that can be redeemed for travel, merchandise, and more. The card also comes with travel insurance, car rental insurance, and purchase protection.
5. Scotiabank Passport Visa Business Card: This card offers rewards points that can be redeemed for travel, as well as travel insurance, car rental insurance, and purchase protection. The card also has no foreign transaction fees.
6. CIBC Aeroplan Visa Business Card: This card offers rewards points that can be redeemed for travel, as well as travel insurance, car rental insurance, and purchase protection. The card also comes with a variety of business benefits, such as expense management tools and employee card controls.
7. Capital One Spark Cash for Business: This card offers cash back rewards on all purchases, with no limit on the amount you can earn. The card also has no annual fee for the first year, and offers purchase protection and extended warranty coverage.
8. Business Platinum Card from American Express: This card offers a variety of rewards and benefits, including rewards points that can be redeemed for travel, access to airport lounges, travel insurance, purchase protection, and more.
9. RBC Cash Back Mastercard for Business: This card offers cash back rewards on all purchases, as well as travel insurance, car rental insurance, and purchase protection. The card also has no annual fee.
10. TD Business Visa Card: This card offers rewards points that can be redeemed for travel, merchandise, and more, as well as travel insurance, car rental insurance, and purchase protection. The card also comes with a variety of business benefits, such as expense management tools and employee card controls.
11. CIBC Aventura Visa for Business: This card offers rewards points that can be redeemed for travel and merchandise, as well as travel insurance, car rental insurance, and purchase protection. The card also comes with a variety of business benefits, such as expense management tools and employee card controls.
12. BMO Air Miles Business Mastercard: This card offers Air Miles rewards points that can be redeemed for travel, merchandise, and more, as well as travel insurance, car rental insurance, and purchase protection.
13. National Bank Mastercard Business Card: This card offers rewards points that can be redeemed for travel, merchandise, and more, as well as travel insurance, car rental insurance, and purchase protection.
14. Desjardins Odyssey Business Visa: This card offers rewards points that can be redeemed for travel, merchandise, and more, as well as travel insurance, car rental insurance, and purchase protection. The card also comes with a variety of business benefits, such as expense management tools and employee card controls.
15. HSBC +Rewards Mastercard for Business: This card offers rewards points that can be redeemed for travel, merchandise, and more, as well as travel insurance, car rental insurance, and purchase protection. The card also comes with a variety of business benefits, such as expense management tools and employee card controls.
16. Rogers Platinum Business Mastercard: This card offers cash back rewards on all purchases, as well as travel insurance, car rental insurance, and purchase protection. The card also has no annual fee and no foreign transaction fees.
17. Tangerine Money-Back Business Credit Card: This card offers cash back rewards on all purchases, with no limit on the amount you can earn. The card also has no annual fee and offers purchase protection and extended warranty coverage.
18. Meridian Visa Business Card: This card offers rewards points that can be redeemed for travel, merchandise, and more, as well as travel insurance, car rental insurance, and purchase protection. The card also comes with a variety of business benefits, such as expense management tools and employee card controls.
19. Laurentian Bank Visa Business Card: This card offers rewards points that can be redeemed for travel, merchandise, and more, as well as travel insurance, car rental insurance, and purchase protection.
20. MBNA Platinum Plus Mastercard for Business: This card offers a low interest rate and no annual fee, as well as travel insurance, car rental insurance, and purchase protection.

Here’s a table comparing the 20 business credit cards in Canada mentioned earlier, along with some additional features:

It’s important to note that these features are subject to change, so it’s always a good idea to review the most up-to-date information on each card before making a decision.

Business Credit Cards Pros

There are several advantages to using a business credit card. Here are some of the key benefits:

1. Manage expenses: A business credit card can help businesses keep track of expenses and manage their cash flow more effectively. It can be a useful tool for separating business and personal expenses, which can make accounting and tax reporting easier.
2. Earn rewards: Many business credit cards offer rewards programs that allow businesses to earn cashback, points, or miles for their purchases. These rewards can be used to offset expenses or to fund future purchases, travel, or other business-related expenses.
3. Build credit: Using a business credit card responsibly can help businesses build credit and establish creditworthiness. This can help businesses qualify for better rates and terms on future loans or credit products.
4. Access to perks and benefits: Many business credit cards offer additional perks and benefits that are tailored to business needs. These can include travel benefits, such as airport lounge access or travel insurance, as well as expense management tools and other business-related features.
5. Higher credit limit: Business credit cards typically offer higher credit limits than personal credit cards, which can allow businesses to make larger purchases or manage expenses more effectively.
6. Employee expense management: Business credit cards can also be a useful tool for managing employee expenses. Businesses can issue cards to employees and set spending limits or restrict usage as needed.

Business Credit Cards Cons

While business credit cards can be a valuable tool for managing expenses, earning rewards, and building credit, there are also some potential drawbacks to consider. Here are some of the cons of using a business credit card:

1. Fees: Some business credit cards may charge annual fees, foreign transaction fees, balance transfer fees, or other fees that can add up over time. Businesses should carefully review the fees associated with each card to ensure that the benefits outweigh the costs.
2. Interest rates: Business credit cards can have high interest rates, especially for businesses with lower credit scores. This can make carrying a balance expensive over time, so it’s important for businesses to pay off their balances in full each month to avoid interest charges.
3. Debt accumulation: Business credit cards can make it easy for businesses to accumulate debt quickly. If a business is not able to pay off their balances in full each month, they may end up carrying a balance and accumulating interest charges that can be difficult to pay off.
4. Risk of fraud: Business credit cards can be a target for fraud, especially if multiple employees have access to the card. Businesses should have protocols in place to monitor usage and prevent unauthorized charges.
5. Credit score impact: Just like with personal credit cards, missed payments or high balances on business credit cards can negatively impact a business’s credit score. This can make it more difficult to qualify for future credit products or loans.
6. Rewards limitations: Some business credit cards may have limitations on rewards, such as spending categories or redemption options. Businesses should review the rewards program to ensure that it aligns with their needs and goals.

Business Credit Cards Facts

Here are some additional facts about business credit cards:

1. Business credit cards can be issued to both small and large businesses, including sole proprietors, partnerships, corporations, and nonprofit organizations.
2. Business credit cards typically require a credit check, and approval is based on the business’s creditworthiness and financial history.
3. Business credit cards can be used to make purchases online, in-store, or over the phone, and can also be used to withdraw cash from ATMs (although cash advances usually carry higher interest rates).
4. Many business credit cards offer online account management tools that allow businesses to view transactions, track expenses, and monitor employee spending.
5. Some business credit cards offer additional perks and benefits, such as extended warranties, purchase protection, roadside assistance, and travel benefits.
6. Business credit cards may have different terms and conditions than personal credit cards, such as higher credit limits, different interest rates, and different fees.
7. Business credit cards can be a useful tool for businesses that need to make large purchases or manage expenses, but they should be used responsibly to avoid accumulating debt and damaging the business’s credit score.
8. Business credit cards can also help businesses build credit and establish creditworthiness, which can be helpful when applying for future loans or credit products.

Business Credit Cards FAQs

Here are some frequently asked questions about business credit cards:

1. Who can apply for a business credit card?

Business credit cards can be issued to a variety of business entities, including sole proprietors, partnerships, corporations, and nonprofit organizations. Generally, the business will need to have a credit history and credit score, although the requirements may vary depending on the issuer.

2. What are the benefits of using a business credit card?

Business credit cards can offer a range of benefits, including the ability to manage expenses, earn rewards, build credit, and access additional perks and benefits that are tailored to business needs. They can also help businesses separate personal and business expenses, which can make accounting and tax reporting easier.

3. What are the fees associated with business credit cards?

Business credit cards can come with a variety of fees, including annual fees, foreign transaction fees, balance transfer fees, and cash advance fees. Businesses should review the fees associated with each card to ensure that they are getting the best value for their needs.

4. What is the difference between a business credit card and a personal credit card?

While both types of credit cards allow users to make purchases and earn rewards, business credit cards typically offer higher credit limits and more tailored benefits and rewards programs that are designed to meet the needs of businesses. They can also help businesses build credit and establish creditworthiness, which can be helpful when applying for future loans or credit products.

5. Can I use a business credit card for personal expenses?

While it is generally not recommended to use a business credit card for personal expenses, some issuers may allow it as long as the user pays the balance in full each month and keeps personal and business expenses separate. However, this can make accounting and tax reporting more difficult, so it’s important to carefully consider the implications before doing so.

6. How can I choose the best business credit card for my needs?

When choosing a business credit card, it’s important to consider the rewards program, fees, benefits, and any other factors that are important to your business. It’s also a good idea to compare multiple options to find the card that best fits your needs.

7. How do business credit cards affect my credit score?

Using a business credit card responsibly can help improve a business’s credit score over time. This is because making on-time payments and keeping balances low can demonstrate responsible credit behavior to credit bureaus. However, missed payments or high balances can have a negative impact on a business’s credit score.

8. Can I add additional cardholders to my business credit card account?

Many business credit cards allow business owners to add additional cardholders to their account. This can be a useful tool for managing employee expenses, as business owners can set spending limits or restrict usage as needed.

9. Can I earn rewards on all purchases with a business credit card?

Most business credit cards offer rewards on eligible purchases, but the rewards rate and eligibility criteria can vary depending on the card issuer and rewards program. It’s important to review the rewards program to ensure that it aligns with your business’s needs and goals.

10. What should I do if my business credit card is lost or stolen?

If your business credit card is lost or stolen, you should contact the card issuer immediately to report the loss and request a replacement card. Most issuers offer 24/7 customer service and can help you resolve any fraudulent charges or other issues that may arise.

11. How can I keep track of my business credit card expenses?

Many business credit cards offer online account management tools that allow business owners to view transactions, track expenses, and monitor employee spending. These tools can be a useful way to stay on top of expenses and ensure that the business stays within its budget.

12. Can I use my business credit card for cash advances?

While business credit cards can be used to withdraw cash from ATMs, cash advances typically carry higher interest rates and fees than regular purchases. It’s generally not recommended to use a business credit card for cash advances unless it’s absolutely necessary.

13. What should I do if I can’t pay my business credit card bill on time?

If you’re unable to pay your business credit card bill on time, it’s important to contact the card issuer as soon as possible to discuss your options. They may be able to offer a payment plan or other solutions to help you avoid late fees and interest charges.

14. Can I transfer balances from other credit cards to my business credit card?

Some business credit cards offer balance transfer options, which allow you to transfer balances from other credit cards to your business credit card. This can be a useful tool for consolidating debt and potentially saving money on interest charges. However, it’s important to review the terms and conditions of the balance transfer offer to ensure that it aligns with your needs and goals.

15. Are there any tax implications of using a business credit card?

Using a business credit card can have tax implications, especially if you’re using it to make deductible expenses. It’s important to keep track of all business-related expenses and consult with a tax professional to ensure that you’re properly reporting and deducting expenses on your tax returns.

16. Can I cancel my business credit card?

Yes, you can typically cancel your business credit card at any time by contacting the card issuer. However, it’s important to review the terms and conditions of your card to ensure that there are no cancellation fees or other penalties associated with canceling your account.

17. How often can I apply for a new business credit card?

The frequency with which you can apply for a new business credit card can vary depending on the issuer and your credit history. It’s generally recommended to wait at least six months between applications to avoid any potential negative impact on your credit score.

18. Can my business credit card be used internationally?

Yes, many business credit cards can be used internationally, although foreign transaction fees may apply. It’s important to review the terms and conditions of your card to ensure that you understand any fees or restrictions associated with using your card outside of your home country.

19. Can I use my business credit card to build credit for a new business?

Yes, using a business credit card responsibly can help a new business build credit and establish creditworthiness. However, it’s important to make on-time payments and keep balances low in order to avoid damaging your business’s credit score.

20. How can I dispute a charge on my business credit card?

If you notice an unauthorized or incorrect charge on your business credit card, you should contact the card issuer immediately to dispute the charge. They will typically investigate the issue and work with you to resolve any fraudulent charges or billing errors.