With a business credit card, you will not only get additional savings, but also incentives on certain purchases for your business, management tools, services like car rentals, hotel stays, etc. I bet you are considering this option now!
We can all agree that running a business, especially a startup, can be full of ups and downs and all the help you can get will go a long way to alleviate 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 attractive range of opportunities.
Credits and loans are ways to “cushion” these periods and create additional savings in your business, which is why I would recommend getting a business credit card.
The question that comes to your mind would be “which business credit card would be best for my business?” » Well, look no further! Here’s a look at some of the features of the best tested and trusted business credit cards in Canada.
Quick overview of the 5 best business credit cards in Canada
1. Marriott Bonvoy Business American Express Card
2. BMO Rewards for Business Mastercard
3. American Express Business Edge Card
4. BMO Mastercard for Business with Cash Back
5. Scotia Momentum Visa Credit Card for Business
Why do you need a business credit card? What are the advantages?
Choosing a Business credit card to finance your business has many advantages. These benefits include:
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Ease of application and qualification: Many business credit cards are very easy to obtain. Eligibility criteria are easy to meet and most have no minimum income limit
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Applications are processed online and within a few days you will be informed of approval.
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Constant access to financing: it constitutes an alternative to business loans which generally constitute one-off financing.
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Business credit cards provide you with consistent access to business financing and other expenses needed to keep you running, for a stipulated annual fee.
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Rewards on business purchases: Most business credit cards offer points per dollar spent on business expenses and create opportunities to redeem those points. These rewards are, in particular, useful when traveling
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Access to business management tools: as a member of certain business credit companies, you have access to management tools for the effective management of your business
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Separates Business and Personal Finances: It helps you keep a proper track of your business expenses apart from your personal expenses. This is even more appreciated when considering for tax purposes; it allows you to calculate taxes without stress
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Benefit from tax deductions: interest on business expenses charged on business credit cards is tax deductible. This means they can be deducted from your income and thus reduce your tax bill by lowering your tax bracket.
Other Benefits of Having a Business Credit Card
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You must be interested in separating your personal finances from those of your business
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You need to create a higher credit limit for your business
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You will need to create a channel for your employees to access company funds.
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Your business involves a lot of expenses, and you’ll benefit from rewards and business credit card points.
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You need an avenue to facilitate increasing your company’s savings capacity
How to apply for a business credit card?
This requires essentially the same steps as applying for a personal credit card.
Although you will need to provide more information about your business, the process is not tedious or complicated.
The steps involved are:
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Select the most suitable business credit card for your business: You can do this by carefully comparing credit cards against your business needs.
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Complete the Card Application: This requires you to provide specific information about your business, such as the registered business name, address and telephone number, number of employees, annual business revenue, and tax identification number.
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Provide additional necessary documents: Some credit card companies may ask you to provide additional documents like utility bills, bank statements, etc.
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Get Approved and Card Issued: Congratulations! Let the business spending begin. Always remember to keep an eye on your spending and limits
The 5 best business credit cards in Canada
1. Marriott Bonvoy Business American Express Card
Benefits and Features of the Marriott Bonvoy Business American Express Card:
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Annual fee: $150
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Rate of 19.99% on purchases and 22.99% on cash advances
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No minimum personal income required
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Win a 50,000 Welcome Bonus Marriott Bonvoy Points after your first debit of $1,500 in the first three months
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Earn 2 points per dollar on all card purchases
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3 points per $1 in purchases with the card on gas, meals and travel
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You’ll earn 5 points for every dollar spent on all card purchases at Marriot Bonvoy properties
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Redeem your points for extended stays at hostels like Sheraton, Le Méridien, Aloft, etc.
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Access to business and expense management tools
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Benefits of travel and business insurance
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Annual free night price
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Automatic upgrade to Gold Elite status when you make purchases up to $30,000 per year
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Payment flexibility
2. BMO Rewards for Business Mastercard
Benefits and features of the BMO Rewards for Business Mastercard:
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Annual fee: $120
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Rate of 14.99% on purchases and 22.99% on cash advances
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Exemption from the annual contribution for the first year
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welcome bonus 35,000 points
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3 BMO Rewards points for every $1 spent on gas, stationery, phone and internet bill payments
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1.5 BMO Rewards points on every dollar spent
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Travel protection and insurance
3. American Express Business Edge Card
The American Express Business Edge credit card offers you the following benefits:
4. BMO Mastercard for Business with Cash Back
This business credit card offers a special “cash back” feature. This cashback feature allows you to get back a certain percentage of the money spent on your credit card.
The BMO Cashback Mastercard for Business offers the following benefits and features:
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Annual fee: $0
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19.99% on purchases and 22.99% on cash advances
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Welcome bonus of 6% cash back on gas, office supplies and phone/internet bills for 4 months
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1.5% cash back on purchases at eligible gas stations, office supplies and recurring phone/internet payments
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0.75% on everything other card purchases
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1.75% on purchases at Shell
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Automatic discounts on eligible purchases at participating merchants
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Extended warranty and purchase protection
5. Scotia Momentum Visa Credit Card for Business
The Scotia Momentum Visa credit card for business offers you the following features and benefits:
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Annual fee: $49 plus $29 on each additional additional card
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19.99% on purchases and 22.99% on cash advances, balance transfers and checks
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3% cash back on everyday business purchases
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An interest-free grace period of 25 days
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Travel insurance
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Purchase security
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2.99% introductory interest rate on balance transfers for the first 6 months
Marriott Bonvoy Business American Express Card Vs. American Express Business Advantage Card
Both cards offer you many benefits and valuable points that can be redeemed. They charge similar rates on purchases and cash advances, but have different annual fees, with the Marriott Bonvoy fee leading the way. Another major difference is that the
The American Express Business Edge card requires you to charge up to $5,000 in the first 3 months of membership before you can have access to bonus points.
Meanwhile, the Marriott Bonvoy Business American Express Card only requires fees of up to $1,500 to access bonus points (which is more than before). They both have excellent credit scores.
American Express Business Edge Card vs. BMO Rewards Business Mastercard
The BMO Rewards Business Mastercard offers a lower purchase rate than the American Express Business Edge card, but has a higher annual fee.
The American Express Business Edge Card offers excellent travel insurance, rental coverage, and referral bonuses. Both business credit cards have good credit scores and a points system.
BMO Mastercard for Business with Cash Back vs. Scotia Momentum Business Visa Credit Card
Both cards offer cashback services on purchases.
While the BMO Cashback Business Mastercard charges no annual fee, the Scotia Momentum Visa Credit Card for Business charges an annual fee of $49 and has a minimum credit limit of $500.
The Scotia Momentum Business Visa Credit Card offers 3% cash back, which is higher than BMO. They both offer purchase protection and have good credit scores.
Interest and taxes on business credit cards
A major question you might have about the interest rate on business credit cards might concern its effects on your overall tax bills. The answer is that all interest on business expenses incurred on business credit cards can be deducted from your taxes. Isn’t that great?
However, interest on personal expenses is not deductible. Proper record keeping would verify payments and interest charged throughout the year.
Don’t forget to check with the Canada Revenue Agency (CRA) for eligibility criteria when filing your annual income tax return.
Conclusion
So there you have it, that was my take on the 5 best business credit cards in Canada right now.
You can choose the ones that best suit the individual needs of your business.
If you liked the content or this article or found it useful, please share it on social media and help spread the word.
Also let me know your thoughts in the comments below.
