What is the best business credit card in Canada? We’re all pretty familiar with choosing credit cards for personal use. But if you’re a business owner, you might be wondering if there’s a credit card that can help you take things to the next level. Or, at the very least, support your day-to-day business needs. You’re in luck! There are several credit cards designed just for business people like you. Here is a list of the best Canadian credit cards for businesses.
How Does a Business Credit Card Work?
A business credit card works like the personal ones you already know, but they are reserved for a very specific clientele. In order to be eligible, you must run your own business. Other factors come into play too, such as your assets, liabilities, ability to pay your debts, collateral, etc. As with any credit approval process, there is always the possibility you could be denied a business credit card.
Business credit cards tend to offer higher credit limits than personal credit cards, but that’s not always the case. Small business owners and sole proprietorships may struggle to access higher credit limits.
Generally speaking though, business credit cards are designed to help the owner buy more expensive items like equipment and other resources, as well as the ability to make a high volume of purchases. Obviously, when it comes to separating personal and business expenses, a business credit card can be very useful.
1. Vault: Best Business Credit Card in Canada for Mulitple Currencies
The Vault Corporate Card is an excellent alternative to a traditional business credit card, especially for small businesses and startups that engage in a lot of international transactions, such as eCommerce businesses. Vault is a prepaid business credit card and business banking platform in one, and the card does not require a credit check or personal guarantee. There’s no annual or monthly fee. You can issue 1 free physical card per user, and then it’s $10 per card thereafter.
Spend freely in over 180 countries, both online and in-person wherever Mastercard is accepted. Vault’s intelligent routing technology ensures that your transaction currency aligns with your account balances, dodging those pesky foreign exchange fees. If the currency doesn’t match, don’t worry, it will default through your Canadian currency account. Plus, Vault integrates seamlessly with QuickBooks and Xero.
Enjoy 1 physical card per user and issue unlimited virtual cards. From day one, create and name your Vault Prepaid Credit Card in seconds, set spending limits, and even define how often those limits should refresh. Employees can easily request a card by clicking on the Cards tab from their Vault user profile. You can also create cards for specific needs by restricting spending to certain vendors or blocking unwanted categories and merchants.
And let’s not forget the icing on the cake – an unlimited 1% cash back. Every card issued, whether physical or virtual, earns cash back on purchases.
| Eligibility Requirements | Vault Corporate Card |
| Credit Score | Not requried |
| Additional | Resident of Canada, Provincial age of majority *Card not available in Quebec. |
2. Loop Corporate Card: Best Business Credit Card for eCommerce
The Loop Corporate card is a business credit card that allows you to pay in CAD as well as GBP, USD and EUR. This makes it ideal for businesses that engage with customers and vendors around the world, as you can repay in your preferred currency without getting hit with additional fees.
The Loop card connects with your eCommerce platform and offers credit limits based on your company’s revenue. Also, you get up to 55 days of interest-free purchases, which is 25 days longer than average.
Finally, Loop rewards you with points on purchases. You’ll earn up to 2 points for every dollar you spend. Points can be redeemed for gift cards with popular retailers such as Walmart, Air Canada, Apple, and more.
| Eligibility Requirements | Loop Corporate Card |
| Credit Score | Not required |
| Additional | Resident of Canada, Provincial age of majority |
3. BMO AIR MILES World Elite Business Mastercard: Best Business Credit Card for AIRMILES
Who hasn’t heard of AIR MILES? Most people know about AIRMILES credit cards, but did you know that it was possible to earn AIR MILES on your business expenses? You can with the BMO AIR MILES World Elite Business Mastercard.
Points are accumulated at the rate of 1 mile for every $12 in purchases. However, you can get four times more points by using your card with one of the AIR MILES partners.
The advantages offered to those who hold this card are numerous. You have protection against card misuse if you give it to your employees, you have access to hundreds of airport VIP lounges, you have comprehensive travel protection, 90-day protection on your purchases and exclusive discounts at some merchants.
BMO AIR MILES World Elite Mastercard holders also get exclusive benefits for Maple, a virtual healthcare platform. This includes, among other things, five free virtual Maple consultations that can be shared between you and your family members.
| Eligibility Requirements | BMO AIRMILES World Elite Business Mastercard |
| Credit Score | 720 |
| Additional | Resident of Canada, Provincial age of majority |
4. BMO CashBack Business Mastercard: Best No-fee Business Credit
The BMO CashBack Business Mastercard offers cash back rates of 1.75% when you pay at the pump or make in-store purchases at Shell, 1.5% on qualifying purchases of gas, office supplies, and recurring payments of cell phone and internet bills, and 0.75% on all other card purchases.
Among the other benefits of the BMO CashBack Business Mastercard, you get discounts at certain merchants and you have an extended warranty on your purchases. This is an ideal option for those who wish to benefit from the advantages of a business credit card without having to pay a large annual fee.
| Eligibility Requirements | BMO CashBack Business Mastercard |
| Credit Score (estimate) |
660 |
| Additional | Resident of Canada, Provincial age of majority |
5. Caary Business Mastercard: Best for Employee Expenses Management
The Caary Business Mastercard, built for small to medium-sized businesses in Canada, offers unique benefits including no personal liability or credit checks, and zero annual or foreign exchange fees. It integrates seamlessly with accounting software like QuickBooks and Xero and provides a user-friendly mobile app, ensuring streamlined financial management for business owners.
To simplify bookkeeping, the card features receipt capture from phone or email. Virtual credit cards can be issued to team members in seconds, with flexible spend limit controls. Further, businesses can create dedicated supplier cards with custom spend limits, enhancing expense management.
This card is a money-saver too, offering an unlimited 1% cash back. Instant locking, cancelling, reordering, and customizing of cards are possible from Caary’s management dashboard, ensuring effortless control over spending.
With the Caary Business Mastercard, businesses can enjoy simplified, controlled spending, seamless bookkeeping, and rewarding cashback, making it an optimal choice for financial management.
| Eligibility Requirements | The Caary Business Mastercard |
| Credit Score | Not required |
| Additional | Resident of Canada, Provincial age of majority To qualify, businesses must be registered as a corporation in Canada (excluding Quebec), maintain a $35,000+ average account balance in a business bank account, and report a $25,000+ annual spend on a credit card. |
6. Float Business Credit Card: Best Prepaid Business Credit Card
The Float Business Credit Card is fairly new to the business credit card lineup in Canada and is shaking things up in a lot of neat ways. It could possibly be the best business credit card out there for small to medium-sized businesses as far as accessibility and savings potential go. The basic plan is free, and you can upgrade to the Enterprise plan for $99 per month as your business grows and needs change.
The Float Card works on a prepaid model, so there is no credit check or personal guarantee required to get this card. Having said that, it means you don’t have access to actual credit; just the balance in your business bank account. However, it also means you don’t have interest charges to worry about either, since you’re using your own money instead of borrowing.
Next, Float comes with special software and bookkeeping integrations to save time without losing control over company spending. These features can almost entirely eliminate the need for expense reports and physical receipts, nor do employees have to wait for reimbursement. It pretty much automates the entire end-to-end spend management process, saving a ton of labour hours.
Finally, you get all this without sacrificing rewards. The Float card offers 1% cash back on all purchases, plus special discounts at Float partners like QuickBooks, Hubspot, and AWS, to name a few. Also, there are no foreign transaction fees to worry about if you do business outside Canada.
| Eligibility Requirements | The Float Business Credit Card |
| Credit Score | Not required |
| Additional | Resident of Canada, Provincial age of majority |
7. Scotia Momentum for Business Visa Card: Best Business Credit Card for Large Purchases
Maximize your business savings with the Scotia Momentum for Business Visa card. It offers 3% cash back on eligible gas station, restaurant, and office supply store purchases, as well as eligible recurring bill payments. You’ll enjoy this rate on the first $50,000 spent annually in these categories. After reaching the $50,000 limit, and for all other card purchases, you’ll earn 1% cash back.
Benefit from a 25-day interest-free grace period on new purchases, and protect your business with a suite of comprehensive insurances. Plus, save even more when you shop with Visa SavingsEdge, a program that provides automatic discounts on a variety of eligible business purchases.
Easily manage employee spending by adding supplementary cards for $29 each, giving you one account with multiple cards and added benefits. Travel with confidence knowing your card provides Travel Emergency Medical Insurance for eligible persons under 65 for up to 8 consecutive days, and for those 65 and older, up to 3 consecutive days.
You can also enjoy Rental Car Collision/Loss Damage Insurance when you charge the full cost of your eligible rental car to your Scotia Momentum for Business Visa card. Rest assured that your rental is automatically insured if damaged or stolen.
Last but not least, you get complimentary Purchase Security and Extended Warranty Protection. Most items purchased with your card are insured against theft, loss, or damage for 90 days from the purchase date, and the manufacturer’s warranty is doubled for up to one year.
| Eligibility Requirements | Scotia Momentum for Business Visa Card |
| Credit Score (estimate) |
660 |
| Additional | Resident of Canada, Provincial age of majority |
8. Scotiabank Passport Visa Infinite Business Card: Best Business Credit Card for Foreign Spending
Experience a world of benefits with the Scotiabank Passport Visa Infinite Business card. Earn 1.5 Scene+ points for every $1 spent on business purchases, and enjoy no foreign transaction fees for purchases made online or outside of Canada – only the exchange rate applies.
You can redeem rewards easily for yourself or others – using points for travel, merchandise, or gift cards tailored to your business needs. Take advantage of exclusive savings by turning eligible business purchases into automatic discounts with Visa SavingsEdge.
When travelling for business, your complimentary Visa Airport Companion Program membership grants access to 1,200+ airport lounges globally, including participating Plaza Premium Lounges, with six complimentary visits per year.
Plus, get peace of mind with a suite of travel benefits and insurances, including travel emergency medical insurance, trip cancellation/trip interruption insurance, flight delay insurance, delayed and lost baggage insurance, travel accident insurance, rental car collision loss/damage insurance, and hotel/motel burglary insurance.
No matter where you are, you can efficiently manage your Visa Business card expenses with Visa Spend Clarity for Business, a web-based tool that helps track expenses to stay on budget. You also get purchase security and extended warranty protections, with most items purchased with your card insured against theft, loss, or damage for 90 days, and the manufacturer’s warranty doubled for up to one additional year.
Unlock a complimentary Avis Preferred Plus membership for car rentals and indulge in Visa Infinite Benefits with the Scotiabank Passport Visa Infinite Business Card, such as Visa Infinite Concierge and the Luxury Hotel Collection. The Waiver of Liability Program allows eligible businesses to request Scotiabank to waive liability for certain unauthorized charges made by employee cardholders, up to $100,000 per card account.
| Eligibility Requirements | Scotiabank Passport Visa Infinite Business Card |
| Credit Score | 680 |
| Additional | Resident of Canada, Provincial age of majority |
9. TD Business Select Rate Visa Card – Best Low-interest Business Credit Card
The TD Business Select Rate Visa Card is available for no annual fee and has ultra-low interest rates on purchases and cash advances of just 11.99%, but you also have the option to pay $49 annually for an even lower rate of just 8.99%. And cardholders who pay their balance in its entirety will benefit from a 21-day interest-free grace period for new purchases.
Whether you’re a small business with low start-up costs or want to save on interest payments for your established enterprise, the TD Business Select Rate Visa Card is a great choice; just be sure to pay your balance off in full at the end of every statement period.
| Eligibility Requirements | TD Business Select Rate Visa Card |
| Credit Score (estimate) |
660 |
| Additional | Resident of Canada, Provincial age of majority |
10. TD Business Travel Visa: Best Business Credit Card for Travel Deals
The TD Business Travel Visa is a great option if you or your employees travel often for work. It offers competitive reward earn rates as well as flexible redemption options. You earn the most points when you book travel through the exclusive ExpediaforTD.com portal. But the good news is that you can redeem your TD points for travel with any provider, not just Expedia. Here’s how to earn points at a glance:
- 9 points per $1 spent on ExpediaforTD.com
- 6 points per $1 spent on recurring bill payments, restaurants, and foreign currency purchases
- 2 points per $1 spent on all other eligible card purchases
TD rewards points can be redeemed for travel, merchandise, gift cards, or a statement credit. You can even use them for business purchases on Amazon through the Amazon Shop with Points feature. If you and your team are Starbucks fans, you can earn 50% more TD points and 50% more Starbucks rewards by linking the card to your Starbucks Rewards account.
The TD Business Travel Visa also comes with 6 travel-related insurance protections from travel medical insurance to delayed and lost baggage, and even rental car perks.
| Eligibility Requirements | TD Business Travel Visa Card |
| Credit Score (estimate) |
660 |
| Additional | Resident of Canada, Provincial age of majority |
How to choose the best business credit card for you
Choosing the right business credit card can be a game-changer for managing your company’s finances. It can simplify expense tracking, provide additional purchasing power, and even offer rewards and cash back. But with so many options available, how do you select the right one for your business? Here are some key factors to consider:
Examine Your Business Needs
Each business is unique. It’s essential to start by evaluating what you need in a credit card. Do you want better control of your team’s spending? Do you need a simplified bookkeeping process? Would you like to earn rewards on your business expenses? Do you carry a balance and need a low interest rate? Understand what your business requires, and choose a card that aligns with those needs.
Evaluate the Fee Structure
The cost of running a business can make or break your success. You want to find a business credit card that strikes a balance between fees you can afford and the features you need. Some cards charge an annual fee, while others do not.
Consider interest rates and don’t overlook foreign transaction fees, especially if your business involves global transactions. Ideally, your business credit card should help you save money, not introduce additional costs.
Look for Expense Management Features
A good business credit card should offer robust expense management features. This can include receipt capture and categorization, integration with accounting software like QuickBooks and other popular programs, and customizable spending limits.
These features can significantly streamline your accounting process and give you greater control over your business expenses. Not only does this save you money on expensive labour hours, but it also frees more of your time to scale your business.
Consider Cash Back & Rewards
Many business credit cards offer rewards or cash back on purchases. If your business spends heavily on categories like office supplies, travel, or telecommunications, it might be beneficial to opt for a card that offers higher rewards on these categories.
If you travel frequently for your business, a good travel card can save money on travel expenses. Additional perks like complimentary insurance and lounge access can indirectly save money and reduce travel-related stress. The right rewards business credit card can add to your bottom line and offset some business costs.
Check out Card Permissions & Controls
For businesses with a team, it’s crucial to find a card that allows you to easily and quickly issue cards to employees with customizable spending limits. This way, you can delegate financial responsibilities while maintaining control.
Customer Service & Fraud Protection
It’s essential to choose a business credit card backed by excellent customer service and robust security measures. The issuer should be able to assist you promptly in case any questions or problems arise. Solid fraud protection measures are critical to safeguard your business from any unauthorized transactions.
FAQs About the Best Business Credit Cards
What’s the best credit card for businesses in Canada?
The best business credit card varies based on your specific business needs, spending habits, and goals. For instance, the Caary Business Mastercard is a strong contender because there is no credit check, personal liability, or annual fees. It also has features that automate and simplify expense management. Other popular choices include the Float Card because of its prepaid model and robust features. It’s recommended to compare these cards and others on the market to determine the best fit for your business.
Are business credit card cash rewards taxable in Canada?
According to the Canada Revenue Agency (CRA), credit card rewards are typically not considered taxable income for businesses if they are received as a result of purchases made for business purposes. However, if the rewards are converted into cash, or if the card is used for personal purchases, then the rewards might be taxable. You should consult with a tax professional to understand the specifics of your situation.
Can I get a business credit card with bad credit in Canada?
Yes, it’s possible to get a business credit card with bad credit in Canada, although your options may be more limited. Some business credit cards, like the Caary Business Mastercard, don’t require a credit check or personal liability. Another option is a prepaid business card, like the Float Card, which doesn’t require a credit check because only the money you load onto the card can be spent. – therefore you are not borrowing money for purchases that will need to be paid back.
Do business credit cards have a personal guarantee?
It depends on the type of business and the card you choose. The nice thing about business credit cards is that there is a legal difference between your personal debt and that of the company you own. Unfortunately, in some cases, the responsibility is shared between the business and the business owner. You need to be able to assume responsibility for business debts in the event that the company cannot meet its obligations.
Is it possible to use a business credit card for personal purposes?
Sometimes there is a thin line between a personal expense and a business expense. In theory, it’s not illegal to use your business credit card for personal use. However, you need to understand the terms and conditions you agreed to when you signed up for the card. Generally, banks forbid you to use your business credit card for the purpose of paying your personal expenses. Also, it’s just bad business practice because it’s too difficult to differentiate your personal expenses from your business expenses. Why make life harder for yourself?
How to get a business credit card?
As with a personal credit card, you must apply for a business credit card. You will then be subject to various eligibility criteria. In the majority of cases, you will need to submit proof that your business exists. The bank may require certain documents like financial statements, business licenses, etc.
Are credit card charges deductible for businesses?
Yes! Your annual fees are deductible, but that’s not all. The interest you pay on money borrowed to earn an income, like the balance on your business credit card, is also deductible.
Can I use my personal credit card for my business?
Yes! It is possible, but not always recommended. First of all, it is more difficult to calculate your business expenses when they are mixed with personal expenses. Furthermore, a good credit history can be very relevant to your business. Banks will be more inclined to grant you business loans if they know that you are a good payer.
