The Best Business Credit Cards in Canada for 2022
It’s a great time to be doing business in Canada, but many individuals don’t realize how many benefits are available to them as business owners. One such benefit is the possible rewards and incentives that can be unlocked through the use of the right credit card.
The credit card landscape in Canada is quite varied, so it can be difficult to cut through all of the weeds of information. Sometimes, it takes not garden shears but a full-on sickle.
Keep your weapons at bay, because Wealth Rocket’s review of the best business credit cards in Canada is here to provide you with all of the best credit options available to Canadians.
Table of Contents
The Best Business Credit Cards in Canada, Ranked
Businesses of all shapes and sizes can take advantage of the perks and advantages that come with business credit cards. You can learn more about these cards in the dedicated list below.
1. BMO Air Miles Business Mastercard
This air miles credit card offers its spends 0.13 miles for every everyday purchase and 0.1 miles for all others.
A reliable travel credit card, purchases made with the BMO Air Miles Business Mastercard will also grant you rental car accident insurance, protection from lost or stolen baggage and hotel theft, as well as trip cancellation, trip interruption, and travel insurance.
This credit card is well known for its insurance offerings, too. However, it should be noted that its redemption value drops when regular purchases (and not air miles) are concerned.
2. American Express Business Edge Card
The American Express Business Edge Card is a crowd favorite among business circles, mostly thanks to its superb rewards program that allows spenders to earn 3 points for every gas, grocery, or restaurant purchase, as well as 1 reward point for every other dollar spent. For the average business spender, this translates into at least $500 in rewards annually.
The real beauty of this rewards system is the fact that the points, which come in the form of Amex Membership Reward points, are so flexible.
Points are redeemable for a variety of travel purchases, such as long-haul flights, and hotel stays. You are not limited to these categories, however. Amex’s rewards program includes the option of a wide range of dining, retail, and entertainment options. Cardholders can even use the rewards to shop on Amazon or redeem them for the gift cards of their choice.
3. Marriott Bonvoy Business American Express
If you find yourself making regular business trips that involve an overnight stay at a hotel, it may be worthwhile to get a business credit card that has its hands in the hotel business.
One superb option is the Marriott Bonvoy Business American Express Card, an Amex that comes with a hefty rewards program and enticing perks.
The earn rates for this card are as follows: 5 points for every $1 spent at Marriott properties, 3 points for travel-related purchases like restaurants and gas, and 2 points for all other purchases.
The perks include free nights at hotels and Silver Elite Status, a Marriott member level that earns you free Wifi, complimentary late checkout, and more.
4. BMO Rewards Business Mastercard
It’s no coincidence that there are multiple BMO cards on this list, considering that they have a reputation for being an attractive banking option for business owners.
The BMO Rewards Business Mastercard entices customers by offering a points structure that's suitable for business owners. Namely, cardholders can earn 3 BMO Reward points earned for every $1 spent on gas, bill payments, and office supplies.
This is a great card for the business owner who is not looking for travel rewards as much as they for a general rewards program.
However, cardholders will find some travel-related benefits with this card, such as trip cancellation insurance.
Overall this is the ideal card for any small business owner who finds themselves spending $5,000 or more on business or office-related expenses every year.
5. American Express Business Gold Rewards Card
Don’t let the high annual fee of this card dissuade you. When it comes to rewards and perks, the American Express Business Gold Rewards card packs a punch. Plus, in many cases, this annual fee will be tax-deductible.
For one thing, this card’s rewards redemption system is among the best of any credit card in Canada, with cardholders having the choice between balance redemptions, experiences, flights, Amazon.ca purchases, gift cards, and more. The card also offers a 1:1 transfer to Aeroplan points, which is great for anyone who frequently flies Air Canada.
Overall, this is our top pick card for anyone who finds themselves engaging in heavy business spending that is looking for an easy-to-follow rewards system.
What is a Business Credit Card?
A business credit card is a credit card issued to a business, instead of an individual. This is helpful mostly for the organization of expenses — business owners can write off a lot of expenses and business purchases must be documented. The interest rate on a business credit card is usually similar to that of a personal credit card, as are the credit limits and annual fees.
It is important to note that, even if a business is operating with limited liability, business credit cards do not protect the individual from liability.
Many business credit cards come with “joint and several liabilities”, which references a shared liability between the business and the individual. This is not the case universally, though. Check with your bank before you sign up for a card!
How Does a Business Credit Card Work?
Applying for a business credit card is identical to applying for a personal credit card, for the most part.
Applications are usually approved or denied on the spot as they are determined by personal credit. This uniquely makes a business credit card a viable option to individuals who are in the early stages of owning a business, and who will not have any business credit yet.
In many ways, a business credit card works similarly to a business line of credit or loan, in that a business owner has access to a certain amount of capital at their disposal that they are then expected to pay off.
Some business owners prefer the convenience of a business credit card because it allows other employees or individuals to make purchases for the business, and the fact that it is easier to keep track of any and every business expense.
Our Final Thoughts
If you own a business, there is a good chance that you will not have the luxury of figuring out whether or not you need a business credit card on your own.
If you find yourself making a good deal of purchases for your business on your personal credit card, you should consider a business credit card that benefits you and your business’ needs.
Frequently Asked Questions
There are a lot of ways that a business credit card resembles a regular credit card. Most of these features require personal credit to be eligible, for example, though a business credit card can help you build business credit.
For the most part, business credit cards are different because they make it easier to track business expenses and to provide employees with credit cards. Most businesses similarly use them to that of a loan or line of credit.
The answer to whether or not business credit card points are taxable in Canada is a bit complicated, so bear with us!
While for the most part, credit card rewards will be seen by the Canada Revenue Agency (CRA) as a kind of rebate and therefore not taxable, there are exceptions.
If you use your credit card points for cash rewards or if you allow an employee to personally redeem rewards earned on a business credit card, the CRA will expect you (or the employee) to declare it as taxable income.
While many business credit cards have higher annual fees than personal credit cards, this is usually written off as a non-issue because they are tax-deductible.
But how accurate is this? For the most part, very. Generally speaking, all of the fees associated with your business credit card, including late payment fees, cash advance fees, balance transfer fees, and annual fees are tax-deductible. You must keep clear records to benefit from this tax deduction.