What Is The Best Business Credit Card In Canada?

A business credit card is a must-have for anyone operating a business that has scaled beyond just a one employee. Aside from the practical reasons to set up this type of payment method, getting a business credit card can allow your business to benefit from bonuses and reward points. The challenge however stems from deciding which of the many business credit card options in Canada are right for you. In the following sections we summarize our research into finding the best business credit card in Canada in addition to providing a quick overview of business credit cards for those less familiar.

Why Get a Business Credit Card?

Business credit cards are a valuable alternative to using personal credit cards for business purposes. If you operate a business you should strongly consider opening a business credit card for a host of reasons, including:

  • More Practical – separating your personal credit card spending from your business spending is important as it not only helps you keep track of business-related expenditures more explicitly, but when it comes to accounting and filing taxes for the business, it greatly reduces complexity.
  • Scale Advantage – as your business grows, by using a business credit card (versus a personal one) you can easily add more users to the same account.
  • Welcome Bonuses – generally, the welcome bonuses for business credit cards will be greater than the bonuses for a personal credit card.
  • Reward Points – this is one of the best reasons to use a business credit card. By using this form of credit for business expenses, you can also earn rewards points, which is an effective rebate for your business. In addition, the total level of spending will likely be higher which creates the possibility that you can actually earn more substantial rewards.
  • Greater Financial Flexibility – business credit cards will generally have much higher credit limits than personal credit cards.

Who is Eligible For a Business Credit Card?

You don’t necessarily need to own or be part of a large corporation or a small business to be eligible for a business credit card in Canada. In fact, if you simply have additional income outside of your regular job, you could be eligible to get a business credit card. For example, if you have a side business buying and selling on Amazon or income from being a freelancer or driving for Uber – all of these sources of income could make you eligible for a business credit card.

These Are The Best Business Credit Cards In Canada

There are many business credit cards available in Canada, and it certainly required in-depth research and analysis to determine which were the best options for potential cardholders to consider. Below we walk through the 3 best business credit card options we think that exist today in Canada.

American Express Business Edge Card

If you have a small level of extra income or own a small business, the American Express Business Edge Card is the best option. This in our view is the best business credit card for all-around use, and the best choice for small business credit cards. The card has a low annual fee of just $99 and an interest rate on purchases of 19.99% and a rate of 21.99% for cash advances – both of which are standard rates. To qualify for the American Express Business Edge Card you only need a credit score above 600, which is attainable for most Canadians.

Additional Credit Card Features

  • Sign-Up Bonuses – this business credit card comes with a generous welcome bonus of 45,000 points when you have over $5,000 of expenditures with the card. You have three months to hit this level of spending to be eligible for the points bonus. You also get an extra 1,000 reward points every time you spend over $3,000 on the credit card in a single month.
  • Reward Points – cardholders earn three times the amount of points on business expenses, such as electronics, food and drink, and gas.
  • Insurance Benefits – the credit card also comes with protection on purchases.

RBC Business Cash Back Mastercard

The RBC Business Cash Back Mastercard is the most cost effective business credit card for those who value cash rewards. Not only does the credit card have no annual fee, but it offers cardholders very attractive cash back features on purchases even beyond the initial promotional period. The credit card has a purchase rate of 19.99% and a cash advance rate of 22.99% – both relatively standard rates for the industry.

Additional Credit Card Features

  • Cash Back Promotion – cardholders can earn 2% cash back on purchases that are made with the credit card during the first three months.
  • Cash Back Benefits – outside of the initial promotional period, cardholders can earn 1% cash back on purchases made on their cards. There is however a maximum of $650 annually that can be earned. However, given the $0 annual fee, this is a fantastic benefit. After cash back balances exceed $25, the full amount of cash back rewards can be credited to the account by request at any time.
  • Other Benefits – cardholders can save $0.03 per litre on fuel by linking their credit cards, and also earn 20% more Petro-Points at Petro-Canada locations. In addition, cardholders can also get $0 delivery fees for 3 months from DoorDash.

American Express Business Platinum Card

For more established businesses or businesses with several employees, the American Express Business Platinum card is the best business card available. This is the premium credit card line offered by American Express and though it comes at a price that is far from cheap – $499 per year – it also comes with a long list of great features for cardholders. It is unsurprisingly the least accessible of the credit cards we’ve discussed as you’ll need a credit score of at least 700 in order to qualify.

Additional Credit Card Features

  • Sign-Up Bonuses – cardholders can receive a welcome bonus of 80,000 reward points when they spend $6,000 with the credit card during the first three months of card membership. This is notable because of the fact that these bonuses are redeemable for statement credits at a rate of 1,000 points for $10, which means that the sign-up bonus has a value of $800! So cardholders can more than pay for the first year’s annual fee with the sign-up bonus.
  • Reward Points – cardholders earn 1.25x points per each $1 of spend that is made with the card. Because of the statement credit feature, this is essentially a form of cash back.
  • Travel Benefits – with the card you have access to over 1,200 airport lounges. These lounges span the globe and include 130 countries. You can also access upgrades to flights and hotels.
  • Referral Benefits – refer someone to American Express and you can earn up to a maximum annual referral bonus of 225,000 reward points.
  • Insurance Benefits – cardholders are automatically enrolled in the American Express purchase protection plan which provides insurance for purchases, accidental physical damage, theft and much more.

Conclusion on the Best Business Credit Card In Canada

As noted earlier, there are of course many more business credit cards in Canada available. The three credit cards discussed are what we believe are the best business credit cards in Canada currently. Our approach focused on looking at the bonuses offered, card features and card cost. Ultimately, similar to a personal credit card, the best business credit card for a particular business or person will come down to their specific situation. While the American Express Business Platinum Credit Card is a fantastic premium card, not everyone is eligible, and so for some people the American Express Business Edge Credit Card could be an attractive alternative. Our hope was that by discussing three different cards we covered all bases.