Top 5 Business Credit Cards In Canada (2020)

Last updated on June 13th, 2020 at 05:06 pm

With a business credit card, you’ll not only get extra savings but incentives on certain purchases for your business, management tools, services like car rentals, hotel stays etc. I bet you’re considering this option now!

We all agree that running a business, especially startups, can be full of ups and downs and every bit of help you can get will go a long way in easing the stress. Between trying to maintain a balance between your personal and business expenses and creating opportunities for savings and tax deductions, business credit cards offer you an enticing range of opportunities.

Credits and loans are ways to “cushion” these periods and make extra savings in your business, which is why I would recommend getting a business credit card.

The question on your mind would be “which business credit card would be best for my business?” Well, look no further! Here is a peek at some of the features of the best, tested and trusted business credit cards in Canada.

business credit card - 1

Quick Peek At The Top 5 Business Credit Cards In Canada 

1. Marriott Bonvoy Business American Express Card

2. BMO Rewards Business Mastercard

3. American Express Business Edge Card

4. BMO Cashback Business Mastercard

5. Scotia Momentum for Business Visa Credit Card

Why Do You Need A Business Credit Card? What Are The Benefits?

Choosing a Business credit card to finance your business comes with many benefits. These benefits include:

  • Ease of application and qualifying: many business credit cards are super easy to obtain. The eligibility criteria are easy to meet and most do not have a minimum income limit

  • Applications are processed online and in a few days, you would be notified of approval

  • Constant access to funding: It serves as an alternative to business loans which is usually one-off funding

  • Business credit cards provide you with constant access to funding for your business and other expenses needed for a smooth running at a stipulated annual fee

  • Rewards on business purchases: most business credit cards offer points per dollar spent on business expenses and create avenues for these points to be redeemed. These rewards are, particularly, useful during travels

  • Access to business management tools: as a member of some business credit companies, you have access to management tools for the effective running of your business

  • Separates business and personal finances: it helps you keep proper track of your business expenses apart from your personal expenses. This is further appreciated when reviewing for tax purposes; it keeps tax calculations stress-free

  • Enjoyment of tax deductibles: business expenses interests that are charged to business credit cards are tax deductibles. This means that they can be deducted from your income and thereby reducing your tax bill by lowering your tax bracket

Other Benefits Of Having A Business Credit Card

  • You must be interested in separating your personal finances from your business finances

  • You need to create a higher credit limit for your business

  • You’ll need to create a channel for your employees to access the business funds

  • Your business involves many expenses and you will benefit from business credit card rewards and points

  • You need an avenue to facilitate an increase in your business savings capacity

How To Apply For A Business Credit Card?

It, basically, requires the same steps as applying for your personal credit card.

Although you will be required to provide more information as regards your business, the process is neither tedious nor complicated.

The steps involved are:

  • Select the most appropriate business credit card for your business: You can achieve this by carefully comparing credit cards in relation to your business needs

  • Complete the application for the card: this requires you to provide specific information on your business like the registered name for the business, address and phone number, the number of employees, annual business revenues, and tax identification number

  • Provide necessary additional documents: some credit card companies may require you to provide additional documents like utility bills, bank statements, etc

  • Get approved and the card issued: Congratulations! Let the business spending begin. Always remember to keep tabs on your spending and limits

Top 5 Business Credit Cards In Canada

1. Marriott Bonvoy Business American Express Card

Benefits and Features Of The Marriott Bonvoy Business American Express Card:

  • Annual fees: $150

  • 19.99% rate on purchases and 22.99% on funds advances

  • No minimum personal income required

  • Earn a welcome bonus of 50,000 Marriott Bonvoy points after your first $1500 charge within the first three months

  • Earn 2 points per $1 on all card purchases

  • 3 points per $1 card purchases on gas, dining and travel

  • You’ll earn 5 points for every $1 on all card purchases at Marriot Bonvoy properties

  • Redeem point as overstays in hostels like Sheraton, Le Meridien, Aloft, etc

  • Access to business and expense management tools

  • Travel and business insurance benefits

  • Annual free night award

  • Automatic upgrade to Gold Elite status when you make purchases up to $30,000, yearly

  • Payment flexibility

2. BMO Rewards Business Mastercard

Benefits and Features Of the BMO Rewards Business Mastercard:

  • Annual fees: $120

  • 14.99% rate on purchases and 22.99% on funds advances

  • Waiver of the first year’s annual fee

  • Welcome bonus of 35,000 points

  • 3 BMO Rewards points for $1 spent on gas, stationeries, phone and internet bill payments

  • 1.5 BMO Rewards points on every $1 you spend

  • Travel protection and insurance

3. American Express Business Edge Card

The American Express Business Edge credit card offers you the following:

4. BMO Cashback Business Mastercard

This business credit card offers a special “cash back” feature. This cashback feature allows you to earn back a certain percentage of the money spent on your credit card.

The BMO Cashback Business Mastercard offers the following benefits and features:

  • Annual fees: $0

  • 19.99% on purchases and 22.99% on cash advances

  • Welcome bonus of 6% cash back on gas, office stationeries and phone/internet bills for 4 months

  • 1.5% cash back on purchases at eligible gas stations, office supplies and recurring phone/internet payments

  • 0.75% on all other card purchases

  • 1.75% on purchases at Shell

  • Automatic rebates on qualifying purchases at participating merchants

  • Extended warranty and purchase protection

5. Scotia Momentum for Business Visa Credit Card

The Scotia Momentum for Business Visa Credit card offers you the following features and benefits:

  • Annual fees: $49 plus $29 on each additional supplementary card

  • 19.99% on purchases and 22.99% on cash advances, balance transfers and cheques

  • Minimum credit limit of $500

  • 3% cashback on day-to-day business purchases

  • An interest-free grace period of 25 days

  • Travel insurance

  • Purchase security

  • 2.99% introductory interest rate on balance transfers for the first 6 months

business credit card - 2

Marriott Bonvoy Business American Express Card Vs. American Express Business Edge Card

Both cards offer you numerous benefits and valuable points which can be redeemed. They charge similar rates on purchases and funds advances but have different annual fees with the Marriott Bonvoy fee being in the lead. Another major difference is that the

American Express Business Edge Card requires you to charge up to $5,000 within the first 3 months of membership before you can have access to the bonus points.

Meanwhile, the Marriott Bonvoy Business American Express Card just requires a charge of up to $1,500 to access the bonus points (which is more that then former). They both have excellent credit ratings.

American Express Business Edge Card Vs. BMO Rewards Business Mastercard

The BMO Rewards Business Mastercard offers are lower rate on purchases compared to the American Express Business Edge card but it has a higher annual fee charge.

The American Express Business Edge card provides excellent travel insurance and rentals coverage and referral bonuses. Both business credit cards have good credit ratings and point system.

BMO Cashback Business Mastercard Vs. Scotia Momentum for Business Visa Credit Card

Both cards offer cashback services on purchases.

While BMO Cashback Business Mastercard charges no annual fee, the Scotia Momentum for Business Visa Credit Card charges an annual fee of $49 and has a minimum credit limit of $500.

The Scotia Momentum for Business Visa Credit Card offers a 3% cashback which is higher than that of the BMO. They both offer purchase protection and have good credit ratings.

Business Credit Cards Interest And Tax

One major question you may have on the business credit card interest rate may be its effects on your overall tax bills. The answer is that all interests on business expenses incurred on the business credit cards can be deducted from your tax. Isn’t that great?

However, not that interests in personal expenses are deductibles. Good record-keeping would verify the payments and interest charged all through the year.

Remember to crosscheck with the Canadian Revenue Agency (CRA) for eligibility criteria when filing for your annual tax return.

Conclusion

There you go, that was my take on the Top 5 Business Credit Cards in Canada right now.

You can pick the ones which are more suited for your individual business needs. 

If you liked the content or this article or found it helpful, do share it on social media and help spread the word.

Also, let me know your thoughts in the comments below.

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Top 5 Business Credit Cards In Canada

4.65

Value For Money

4.9/5

Benefits

4.5/5

Rewards

4.5/5

Pros

  • No annual fee credit card options
  • Access to business management tools and resources
  • 3% cashback on day-to-day business purchases

Cons

  • You need to be a business owner
  • Some of the credit cards on the list have an annual fee as high as $99, but comes with added benefits

Sagar Sridhar

Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master's degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.

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