Month: July 2024

Looking for the Best Business Credit Cards in Canada in 2025? Many entrepreneurs and business owners are on the hunt for the perfect plastic to fuel their company’s growth. But with so many options out there, how do you choose the right one?

Let’s dive into the world of corporate credit cards and explore what Canada has to offer. We’ll look at the top contenders, their perks and how they can benefit your bottom line.

Why Bother with a Business Credit Card?

Before we jump in, you might be wondering: why not just use a personal card for business expenses? After all, as a small business in Canada that might be the easiest option for you to start with.

Well, here is what’s important about having a dedicated business credit card:

• Separates personal and business finances
• Builds business credit
• Offers higher spending limits
• Provides business-specific rewards and perks
• Makes tax time a breeze

Sounds good, right? Now, let’s check out some of the best small business credit cards Canada has to offer.

The Crucial Role of Expense Management for Small Businesses

As a small business owner in Canada, you’re juggling many responsibilities—and one of the most critical is tracking your expenses. Let’s break down why this matters and how to do it effectively.

Why Expense Management Matters

• Keeps you compliant with CRA regulations
• Enables you to claim tax rebates and benefits
• Prepares you for potential audits
• Provides clear insights into your business finances

Key Responsibilities of Small Business Owners

1. Accurate Tracking: You’re responsible for recording all business expenses and reporting them correctly to the CRA.
2. Tax Rebate Opportunities: Proper expense tracking allows you to apply for HST and other tax rebates in Canada, potentially saving your business significant money.
3. Audit Readiness: Good record-keeping ensures you can pass an audit if one comes your way, reducing stress and potential penalties.

What to Look for in a Corporate Card in 2024

When you’re shopping around for the Best Business Credit Cards in Canada in 2024, keep these factors in mind:

• Annual fee: Is it worth the perks?
• Interest rate: In case you need to carry a balance
• Rewards structure: Points, cash back, or travel miles?
• Additional cardholders: Can employees get cards too?
• Foreign transaction fees: Important for international businesses
• Insurance coverage: For travel, purchases, or even cell phones
• Digital Experience: Software integrations, easy to use banking portal, and easy expense tracking

Remember, the best card for you depends on your business needs. A small local shop might benefit from different features than a globe-trotting consulting firm.

Top Picks for Canadian Corporate Cards

Now let’s review a few options for the best credit cards for businesses in Canada.

Card Name	Provider	Annual Fee	Rewards	Key Benefits
⭐️ Float Corporate Card	Float Visa & Mastercard	$0 (Unlimited Physical + Virtual cards)	Unlimited 1% cashback on every dollar of spend. No annual or monthly cashback caps. Total of 7% in estimated savings (learn more)	• Real-time expense tracking • Virtual + Physical cards • No personal guarantee • 4% interest on deposits
RBC Avion Visa Infinite Business	RBC Visa	$175 ($79 for additional cards)	1.25 points per $1 on all purchases. Capped out at $75k per year. When applied to statement credit 1 point is equivalent $0.58 (0.58% cashback)	• Point-based reward system • Airport lounge access
AMEX Business Platinum Card	AMEX	$799 ($250 for additional cards)	1.25 points per $1 on all purchases	• Great travel rewards but lookout for AMEX acceptance rates
TD Business Travel Visa Card	TD Visa	$149 ($49 for additional cards)	Up to 3 TD points per $1 on travel When applied to statement credit 1 point is equivalent $0.25 (0.25% cashback)	• TD Auto Club Membership
Scotiabank Momentum for Business Visa	Scotiabank Visa	$79 ($29 for additional cards)	Up to 3% cash back on office supplies and electronics When applied to statement credit 1 point is equivalent $0.70 (0.70% cashback)	• Mobile device insurance • Purchase security
BMO AIR MILES No-Fee Business Mastercard	BMO Mastercard	$0 (Free additional cards – up to 22)	1 AIR MILE per $20 spent	• Extended warranty

Our recommended business credit card is Float. It combines ease of use, powerful rewards and doesn’t require personal guarantees to get started. You can sign up for Float in less than 5 minutes.

And, as your business grows (think, more employees and maybe even an in-house finance team), Float can help you support a complete corporate card program, which centralizes business spending, eliminating the need for employees to pay out-of-pocket and seek reimbursement. 

Thousands of Canadian businesses and brands like Knix, Neo, and Clutch have replaced their old cards with Float’s solution. See our customer stories and hear what our customers have to say about Float for yourself!

FAQs

Q: Can I get a business credit card if I’m just starting out? A: Absolutely! Some cards are designed for new businesses. Your personal credit might be a factor, though.

Q: Do I need to have a registered business to apply? A: Not always. Some cards are available to sole proprietors using their personal credit.

Q: Are corporate credit cards the same as business credit cards? A: Not quite. Corporate cards are typically for larger companies and often require the business to be liable for charges.

Q: Can I use my business credit card for personal expenses? A: It’s not recommended. Mixing personal and business expenses can create accounting headaches.

Q: How do business credit cards help to build business credit? A: Regular use and timely payments on a business credit card are reported to business credit bureaus, helping establish your company’s credit history.

Q: What is the best credit card for business owners? A: If you are a business owner, we recommend choosing a company credit card that doesn’t require personal background checks, can offer you high credit limits, and is easy to get started with! Float is a great option with no personal guarantee requirements!

Float – Best Credit Card for Canadian SMBs in 2024

Choosing the best business credit card in Canada isn’t just about finding the shiniest piece of plastic. It’s about finding a financial tool that aligns with your business goals and spending habits.

Whether you’re after cash back, travel perks, or building credit, there’s a card out there for you. Take the time to compare options, read the fine print, and pick a card that’ll work as hard as you do.

If you are interested in getting your hands on the best Canadian business credit card, you should definitely consider Float’s solution:

• Float offers 1% cashback on all categories of spend
• No hidden fees
• Float’s cards have excellent acceptance rates in the US and Canada – just like a normal credit card
• Float also offers 4% interest on all prepaid card balances (no minimums or lock-ins)
• Finally, Float cards also come with a completely free and easy-to-use software that also helps you manage EFT/ACH/Wire payments and employee reimbursements.

Prepaid business credit cards can be a great option for Canadian companies looking for a convenient and flexible way to manage their finances. These cards work similarly to regular credit cards, but instead of borrowing money from a bank, you load funds onto the card in advance. This can be a useful tool for businesses that want to control their spending and avoid going into debt.

Let’s dive into the nitty-gritty details of how prepaid corporate cards work, what to look for when choosing one. Finally, let’s review at the end and the best options that exist on the market today.

Why Consider a Prepaid Business Credit Card?

For many entrepreneurs, managing cash flow can be a real headache. That’s where prepaid business credit cards come in handy. They offer a way to keep tabs on expenses without the risk of racking up debt.

But how do they differ from other types of credit cards? And are they the best fit for your business needs?

The Ins and Outs of Prepaid Business Credit Cards

Think of a prepaid business credit card as a pay-as-you-go mobile plan for your company’s finances. You load it up with cash, and then use it just like a regular credit card. Simple, right?

Here’s the kicker: you can’t carry a balance or build credit history with these cards. They’re more about budgeting and expense tracking than borrowing money.

Pros and Cons: What’s the Deal?

Pros:

• No credit check required
• Great for budgeting
• Lower fees than some other options
• Helps avoid debt

Cons:

• Doesn’t help build credit score
• May have loading fees
• Limited features compared to traditional credit cards

Remember, not all prepaid corporate cards are constructed equally. Solutions like Float operate like a prepaid card, but still offer benefits like a traditional corporate credit card.

For example, Float offers:

• 1% cashback on all categories of spend
• Doesn’t charge hidden fees
• Your prepaid balance on the card earns you 4% interest in addition to cashback (with no minimums or lock-ins)
• Finally, Float cards also come with a completely free and easy-to-use software that helps you track receipts and expenses

You can see all the features of Float’s corporate cards here

How Do They Compare to Other Financial Tools?

Secured Credit Cards:

These cards require a security deposit and can help build or rebuild credit. Unlike prepaid cards, secured credit cards report to credit bureaus, which can boost your credit score over time.

Debit Cards:

Linked directly to your bank account, debit cards offer similar spending control to prepaid cards. However, they might not provide the same level of purchase protection or perks.

Traditional Credit Cards:

These offer more flexibility and rewards but come with the temptation to carry a balance. They also typically have higher interest rates and stricter income requirements.

Lines of Credit:

More flexible than credit cards, lines of credit can be a good option for businesses needing ongoing access to funds. However, they often come with higher interest rates and more stringent application processes.

The Importance of Expense Management Software

In today’s fast-paced business world, tracking expenses is critical. It’s important to track your spending, make smart choices, follow rules, and find ways to grow your money. That’s where good expense management software comes in.

When paired with your prepaid business credit card, the right software can be a game-changer. Find solutions that work well with your card, sorting expenses and creating reports with just one click. This combo can save you hours of manual data entry and reduce the risk of errors.

But it’s not just about time-saving. Good expense management software can help you understand your spending habits, stick to budgets and identify any unusual transactions. Some solutions let you set spending limits for team members or departments. This gives you greater control over your finances.

Remember, the goal is to work smarter, not harder. Using technology for expenses allows you to focus on growing your business. This frees up time and mental energy. Growing your business is the most important thing.

In some solutions, like Float, your get access to a free software to track your business expenses and sync your data with the accounting system like Quickbooks Online or Xero. Float issues prepaid Mastercard and Visa cards making is a no-brainer option for most Canadian businesses.

Making the Right Choice for Your Business

Choosing the right financial tool depends on your business’s unique situation. Ask yourself:

• Do you need to build credit?
• Are you comfortable with the possibility of debt?
• How important is the software integration and time to close your books at the month end?
• How important are rewards and perks?
• What’s your current credit score?

If you’re just starting out or want to keep a tight lid on spending, a prepaid business credit card could be your best bet. But if you’re looking to establish credit or earn rewards, you might want to explore other options.

Tips for Making the Most of Your Prepaid Business Credit Card

1. Shop around for the best deals
2. Read the fine print on fees
3. Set up automatic reloads to avoid running out of funds
4. Keep track of your spending to identify cost-saving opportunities
5. Consider upgrading to an unsecured card once your business is more established

FAQ

Q: Can I build credit with a prepaid business credit card?

A: No, prepaid cards don’t report to credit bureaus. For credit building, consider a secured credit card instead.

Q: Are there any income requirements for prepaid business credit cards?

A: Generally, no. That’s one of the perks of prepaid cards – they’re accessible to businesses of all sizes and stages.

Q: How do I pay my bill with a prepaid business credit card?

A: There’s no bill to pay! You load money onto the card before spending, so you’re always using your own funds.

Q: Are prepaid business credit cards guaranteed?

A: While not technically “guaranteed,” prepaid cards are usually easier to get than traditional credit cards since there’s no credit check involved.

Q: Can I upgrade from a prepaid to an unsecured business credit card?

A: It depends on the card issuer. Some may offer upgrade paths, but you’ll likely need to apply for a new card and meet their credit requirements.

Remember, when it comes to managing your business finances, there’s no one-size-fits-all solution. Take the time to assess your needs, compare your options, and choose the financial tools that will help your business thrive. Whether that’s a prepaid business credit card or another option, the right choice is out there waiting for you.

The Bottom Line

Prepaid business credit cards in Canada help businesses control expenses without worrying about debt. They’re not for everyone, but for the right company, they can be a game-changer. If you’re a new business trying to save money or a company monitoring employee expenses as part of a larger corporate card program, consider using prepaid cards.

Remember, the best financial tool is the one that fits your business like a glove. So, take your time, do your homework, and choose the card that’ll help your business thrive.

If you are interested in getting your hands on a prepaid corporate card, you should definitely checkout Float’s solution. Float doesn’t suffer from the traditional prepaid card shortcomings:

• Float offers 1% cashback on all categories of spend
• Float doesn’t charge hidden fees
• Float’s cards have excellent acceptance rates in the US and Canada – just like a normal credit card
• Float also offers high-interest on all prepaid card balances (up to 4% with no minimums or lock-ins)
• Finally, Float cards also come with a completely free and easy-to-use software that helps you track receipts and expenses

Interested to try our Float for free? Follow this link (floatfinancial.com) to sign up in less than 5-minutes completely online.