Running a small business is a challenge, but using one of the best business credit cards can help free up cash flow, provide rewards, and give you valuable expense tracking tools.
Not all credit cards are created equal, though, so be sure to assess the specific needs of your small business so you can choose a card with rewards and benefits that make the most sense.
Here, we offer tips on how to determine whether your company needs a small business credit card, and if so, how to tell which is the best fit.
Key Takeaways
- Business credit cards for small businesses range from basic no fee cards to premium cards with travel rewards and perks.
- Most cards allow you to add employee cardholders.
- Small business credit cards often include insurance, rewards, business management tools, and purchase protection.
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Best small business credit cards in Canada
If you’re debating on which business credit card would be the best fit for your business, look no further. We've looked at the benefits of each and come up with the best 5 small business cards that could fit any business's needs.
Here are our picks for the best small business credit card in Canada:
| Category | Card | Annual fee | Welcome offer | Apply now |
|---|---|---|---|---|
| No fee business credit card | BMO CashBack Business Mastercard | Primary card: $0 Secondary cards: $0 |  $100 GeniusCash + 10% cash back on gas, office supplies, and recurring cell phone/internet bill payments for the first 3 months (terms) | Apply now |
| Insurance business credit card | BMO World Elite Business Mastercard | Primary card: $149 Secondary cards: $50 | $100 GeniusCash + Up to 70,000 100,000 bonus points (terms) | Apply now |
| Travel business credit card | Marriott Bonvoy Business American Express Card | Primary card: $150 Secondary cards: $50 | Up to 60,000 bonus points (terms) | Apply now |
| Cash back business credit card | Scotia Momentum for Business VISA Credit Card | Primary card: $79 Secondary cards: $29 | None | Apply now |
| Perks business credit card | American Express Business Platinum | Primary card: $799 Secondary cards: $250 | Up to 120,000 bonus points (terms) | Apply now |
Let's take a closer look at what these business credit cards have to offer.
Best no fee small business card
×1 Award winner 
GC: $100
1x Award winner Sometimes, paying an annual fee for a credit card will really pay off.
Other times, it's pretty hard to justify. Perhaps you're a small business owner who is:
- Just starting out and doesn't want to pay any extra expenses
- Only using the card a small amount, and the rewards and benefits don't outweigh the cost
- Looking for a no fee Mastercard or Visa to pair with a Business American Express, so you can be sure to earn rewards no matter where you shop
Whatever the case, a no fee credit card could bring some value to your business.
And in our opinion, the best no fee business credit card is the
This card will give you:
- 10% cash back on gas, office supplies, and recurring cell phone/internet bills for the first 3 months
- 1.75% cash back at Shell
- 1.5% cash back on gas, office supplies, and cellphone/internet bills
- 0.75% cash back on all other purchases
So, if you're looking for a no fee business credit card, and some of your biggest expenses are gas, office supplies, cell phone, and the internet, it's hard to go wrong with this BMO business credit card.
It also comes with extended warranty and purchase protection to give you peace of mind when making purchases for your business – which is pretty standard for a no fee card.
Best insurance business credit card
×1 Award winner GC: $100
1x Award winner One thing that many small business owners might overlook when considering business credit cards is insurance. Some business cards offer comprehensive insurance packages, and this BMO card is no exception.
The
Want some hard numbers to back that up? Here's what it offers:
BMO® Ascend World Elite®* Business Mastercard®*
| Extended Warranty | 1 year |
| Purchase Protection | 90 days |
| Travel Accident | $500,000 |
| Trip Cancellation | $2,500 |
| Trip Interruption | $2,000 |
| Flight Delay | $500 |
| Baggage Delay | $500 |
| Lost or Stolen Baggage | $1,000 |
| Personal Effects | $1,000 |
| Hotel Burglary | $1,000 |
| Rental Car Theft & Damage | Yes |
| Rental Car Accident | $200,000 |
| Rental Car Personal Effects | $1,000 |
Please review your insurance certificate for details, exclusions and limitations of your coverage.
You'll love that there are 13 types of insurance covered by this plan, as it would keep even the most anxious business owner's mind at ease. One thing, though, is that there is an annual fee of $149. Luckily, however, the first year fee is waived for new applicants.
Aside from insurance, this card also offers excellent reward categories in terms of business credit cards.
You earn 4 points per dollar spent on everyday expenses like gas, office supplies, and cell phone/internet bills. Many businesses can really take advantage of that. Plus, they're offering a generous welcome bonus that can see your business earning 70,000 100,000 bonus points.
This lets you earn rewards faster for things you would normally spend money on, which is why some consider it one of the best small business credit cards in Canada.
Best travel business credit card
If you're looking for a card that has a higher return on spending, a better insurance package, and some extremely valuable benefits, then consider a premium business travel card.
And if you want the best, the
Although the annual fee is a little higher for the primary and secondary cardholders ($150 and $50, respectively), this card makes up for it with all its features:
- 5 points per $1 spent at Marriott properties
- 3 points per $1 spent on gas, dining, and travel
- 2 points per $1 spent on all other purchases
- An annual free night certificate for a stay worth up to 35,000 points
- 15 Elite Night credits every year you have the card
The free night alone more than covers the annual fee – the other Marriott perks just make this card even better.
And then there's these to sweeten the deal:
- A 60,000 point welcome bonus after spending $5,00 in the first 3 months
- 9 different types of purchase and travel insurance
Best cash back business credit card
Since cash flow is important for small businesses, getting the best small business credit card in Canada for cash back can help.
Cash back cards give you a small return on your purchases, effectively rewarding your spending. This gives you extra money to invest back into your business.
The
You’ll earn:
- 3% cash back on gas, restaurants, office supplies, and recurring bills
- 1% cash back on all purchases
You’ll also get 4 different types of insurance (including purchase protection), which gives you extra security for business purchases or travel.
Another bonus: Scotiabank business credit cards have a balance transfer promotional period 2.99% for 6 whole months. This can be useful if your business has any pre-existing credit card debt.
Best perks business credit card
Our favourite card for perks, the
As for rewards, you’ll earn:
- 1.25 points per $1 spent on all purchases
When you’re ready to cash them in, decide if you want to transfer them to a travel reward program, get a statement credit, donate them to charity, or put them towards gift cards and merchandise.
We realize that the card’s steep annual fee might put this card out of reach for some small business owners, but it does come with an annual $200 travel credit, American Express benefits, travel discounts, and more that might offset the fee.
How to choose the right card
Narrow down your business card options with a few simple questions. Start by asking yourself:
- Am I willing to pay an annual fee? If so, what’s my budget? This can help you quickly narrow down credit card options to just a few cards if you have limited funds to pay for an annual fee.
- What am I looking for from a small business credit card? Some business cards are known for their generous insurance coverage, others for their travel discounts, cash back, or purchase protection. Consider what you want your card to provide before you submit an application.
- What categories do you spend the most on? Since most cards offer increased rewards for specific categories, take a look at your past purchases to find your top categories. Then, select a card that offers the highest rewards for these purchases.
- Will I be adding authorized users? Keep this in mind if you’ll be adding a cardholder, since some business credit cards charge a few hundred dollars to add a single additional user.
Once you’ve got a shortlist of options, check each one’s credit score and income requirements. Not all business cards have income requirements, but some do and they may be steep, so it helps to check before you apply.
How to maximize your small business card's value
Once you’ve found the best card for your small business, don’t just stick it in your wallet and forget about it. Start by reading your card’s terms and conditions, especially if you have the opportunity to earn a welcome bonus. You might have to spend a specific amount within a window of time, so you don’t want to miss out.
Pay attention to categories that earn you the most and try to make qualifying purchases so you earn rewards faster. Then, when it’s time to cash in rewards, check your best redemption options to get the most value per point.
As you continue to use your small business credit card, take advantage of any business management tools that come with the card. For instance, if your card has an expense tracking program, use it to stay on top of your company’s finances. Read through your statements to check for inaccuracies that could be costing your business. This is especially important if you have employees who are authorized card users.
Pros and cons of small business credit cards
There are a number of benefits that you can get from small business credit cards that you may not expect. However, there are some drawbacks to keep in mind.
Pros:
- It’s easy to track expenses: Having a card that's set aside just for business purchases makes it easy to track your business spending and keep it separated from your personal expenses.
- It frees up your cash flow: While you’ll still have to ensure you have enough cash on hand to pay your credit card bill, using the card can free up your cash flow.
- You’ll get security and convenience for your purchases: These cards have added insurance protection and liability for authorized card users. Plus, making business purchases with a credit card can make returns and expense reports easier to keep track of.
- You’ll earn rewards for business purchases: Make your business expenses work for you by earning rewards. These can be redeemed for cash back or rewards like travel or hotel stays.
- Using the card responsibly can build your business credit score: If you make your credit card payments on time every month, your business will build a solid credit score, which could come in useful if you apply for a business loan down the road.
- You can get credit cards for your employees: If you have employees who frequently make purchases for the business, it’s handy to be able to issue them a company credit card. Plus, many of these have liability coverage in the event that an employee misuses their card.
Cons:
- It’s easy to overspend: Just like any credit card, having a small business credit card can make it easy to spend beyond your business’s means. If you take out a card, you’ll have to be disciplined and stick to a budget.
- There’s the risk your employees may misuse their cards: If you’ve added employees as authorized users, there is the possibility they may use the cards for personal purchases. Check to see if your business card includes liability protection against unauthorized spending.
- The card may have higher interest rates: Business credit cards typically have higher interest rates than personal credit cards, so if you know you’ll be carrying a hefty balance from month to month, consider whether the higher interest rates are worth it.
- You could damage your personal credit score: If you miss payments or go over your business card’s limit, your personal credit score could take a hit.
- Many business cards charge considerable fees: If you’re looking for a business credit card with generous rewards, insurance, or business management tools, you’ll probably have to pay an annual fee (in addition to card fees for each authorized user you add).
FAQ
What is the best small business credit card in Canada?
Since small businesses are so unique, the small business card is the one that matches your business needs. For instance, if you need a no fee card because you’re just starting out, the BMO CashBack Business Mastercard is your best bet.
Are Costco business cards worth it?
They can be if you primarily make your business purchases at Costco. With a CIBC Costco Business Mastercard, you’ll get 2% back at the Costco business centre website, 1% back in store, and 3% back on Costco fuel.
What is the easiest unsecured business credit card to get approved for?
The BMO CashBack Business Mastercard has no income requirements and the lowest minimum credit score requirement, which makes it the easiest unsecured business credit card on our list to qualify for.
Does Amazon have a business credit card?
No, Amazon does not offer a business credit card, but the company offers the MBNA Amazon Rewards Mastercard. However, we prefer using a credit card that offers rewards everywhere you shop, not just Amazon.
Why should I get a small business credit card?
If you’re running a small business, the right business credit card can help you keep your business finances separate, free up cash flow, provide purchase security, and earn you rewards on business expenses.
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