Good financial management is key to any business, and as a small business owner here in Canada, one of the best tools you can use is a credit card just right for a small business. A credit card that is right for you will help you track expenses, earn rewards, and even give you useful perks like insurance and purchase protection.
In this post, we review the best Canadian credit cards in 2024 for the small business owner. No matter what your needs—as they pertain to cash back, travel rewards, or low interest—there’s a card for you.
Why Choose a Business Credit Card?
Before we get into specific cards, there’s a prior question: Why should you choose a business credit card rather than a personal one? Business credit cards are created with the business owner in mind, so features range from higher credit limits and more lucrative rewards programs to expense management tools that will help keep your business finances on track.
In addition, having a business credit card helps you keep both your personal and business expenses separate, which is very important from a bookkeeping standpoint, for tax purposes, etc. Many business credit cards offer employee cards with customizable spending limits to give you control over how your employees spend company funds.
Top Canadian Credit Cards for Small Business Owners
1. American Express Business Edge Card
The American Express Business Edge Card is a great option for small business owners who want to earn rewards on everyday purchases. This card offers:
- 3x Membership Rewards points on eligible business purchases, including office supplies, electronics, and dining.
- 1x point on all other purchases.
- Welcome bonus of 30,000 points when you spend $5,000 in the first three months.
- Annual fee: $99.
You can redeem the points you earn for travel, gift cards, or statement credits. This card also offers purchase protection and extended warranty protection, which can be useful to small business owners who need to buy equipment and supplies regularly.
2. BMO World Elite Business Mastercard
If travel rewards are a priority, the BMO World Elite Business Mastercard might be the right choice for you. With this card, you can earn:
- 3 BMO Rewards points for every dollar spent on travel, dining, and entertainment.
- 5 points on all other purchases.
- Welcome bonus of 70,000 points (worth $500 in travel) after spending $5,000 in the first three months.
- Annual fee: $149.
This card also entitles the cardholder to full travel insurance, which includes trip cancellation and interruption insurance, among others, not leaving out the much-needed car rental insurance. Irrespective of which part of the world you are flying from to the airport, free membership to Mastercard Airport Experiences is being offered by LoungeKey, giving you an opportunity in some of the 1,000 airport lounges spread throughout the world.
3. RBC Avion Visa Infinite Business
The RBC Avion Visa Infinite Business card is designed for business owners who value flexibility in their rewards. Key features include:
- 25 RBC Rewards points for every dollar spent on eligible purchases.
- Welcome bonus of 25,000 points upon approval.
- Annual fee: $175.
Points can be redeemed for a wide range of options, including travel, merchandise, and even paying down your credit card balance. This card also offers valuable business tools, such as detailed expense tracking and the ability to set spending limits for employee cards.
4. Scotiabank Passport Visa Infinite Business Card
For business owners who frequently travel abroad, the Scotiabank Passport Visa Infinite Business Card is an excellent choice due to its no foreign transaction fees. Key benefits include:
- 5 Scotia Rewards points for every dollar spent on eligible purchases.
- Welcome bonus of 35,000 points when you spend $5,000 in the first three months.
- Annual fee: $199.
In that regard, this card comes with full travel insurance, airport lounges, and foreign transaction fees, which may save you quite a sum if you travel internationally for business.
5. CIBC Aventura Visa Infinite Business Card
The CIBC Aventura Visa Infinite Business Card is another strong option for small business owners, particularly those who want flexible travel rewards. Features include:
- Two points for every dollar spent on travel through the CIBC Rewards Centre.
- 5 points on eligible gas, dining, and daily transportation purchases.
- One point on all other purchases.
- Welcome bonus of up to 50,000 points.
- Annual fee: $180.
This card also offers travel insurance, purchase protection, and an easy-to-use expense management tool, making it a comprehensive option for business owners.
Choosing the Right Credit Card for Your Business
Deciding which kind of credit card to use for the business can be a want and a need-based decision. Your decision can be based on the factors below:
Spending habits: If many trips are made, a business credit card with good travel rewards plus insurance would be very appropriate. If office expenses are high due to many employees, get one with extra points or cash back in case you purchase office supplies.
Rewards program: Choose between cash back, travel rewards, or points and what those points can really go toward. Some cards are more flexible and free.
Annual fee: Balance the rewards with paying an annual fee. Some annual fee cards are worth it for the perks that accompany them.
Conclusion
The best small-business credit cards in Canada will offer a mix of rewards, benefits, and tools that enable you to manage your finances better. You are looking to rack up travel rewards, save on regular business expenses, or provide additional perks like insurance coverage, and there is a card to fit your needs.
But with the right credit card already selected, not only can you streamline your expense management, but you can also access the rewards and benefits that make growing your business easy. Just remember to consider the unique needs and spending habits of your business before concluding. With the right card in hand, you’ll have a tool that will help crush the financial demands associated with running a successful small business.
