US Tariffs Are Coming…Maybe: What Canadian SMBs Need to Know

The U.S. has just announced new tariffs on steel and aluminum imports from Canada. While the more widespread proposed tariffs still remain on hold until March 4, these latest developments mean rising costs and supply chain disruptions are on the horizon. If tariffs go into effect, small businesses will feel the squeeze first. Higher costs, disrupted supply chains, and tighter margins mean that businesses need financial tools that move as fast as they do.

So many questions remain. Will tariffs actually happen? Which industries will be hit hardest? And how can your business stay resilient, no matter what?

In this article, we’ll break down what tariffs are, how they might impact Canadian SMBs and, most importantly, the proactive steps your business can take to navigate this period of economic uncertainty. You’ll learn practical strategies to mitigate risks, manage costs and keep your business agile in the face of potential trade disruptions.

US tariffs on Canada: Cheat Sheet for Canadian SMBs, how small businesses can prepare

What is a tariff?

A tariff is a tax imposed by a government on imported or exported goods. These taxes are used to:

  • Protect domestic industries
  • Generate government revenue
  • Influence international trade policies

In this case, President Trump’s proposed tariffs include a 25% tax on Canadian imported goods heading to the US and a 10% tax on Canadian energy products.

How will proposed US tariffs on Canada impact SMBs?

If these tariffs go into effect, they’ll likely result in:

  • Higher costs on imported goods and materials
  • Price increases as businesses offset rising production expenses
  • Supply chain disruptions, forcing companies to renegotiate with suppliers
  • Reduced demand for Canadian exports, as US buyers seek domestic alternatives

In the long run, this could lead to more nearshoring, diversified supply chains and a greater focus on local partnerships.

4 ways small businesses can get ready for US tariffs on Canada

Even if tariffs don’t happen, preparation is key. Here’s how Canadian SMBs can stay ahead:

1. Prepare for extended economic uncertainty

Review your expenses and cut non-essential costs. This might include:

2. Develop a flexible pricing strategy

Ensure your pricing can adapt to changes in costs. Consider:

  • Tiered pricing models
  • Surcharges for specific products
  • Early communication with customers about potential price increases

3. Mitigate tariff risks

Diversify your supply chain to reduce exposure. Strategies include:

  • Sourcing locally where possible
  • Exploring resources from Export Development Canada (EDC)
  • Partnering with multiple suppliers to avoid disruptions

4. Consult with experts

Economic uncertainty requires expert advice. Consider:

  • Consulting the Canadian Development Bank (CDB) for financial guidance
  • Partnering with firms like PwC for tailored advice on tariffs and trade policies

2025 trade war timeline

Stay informed with key dates in the evolving trade situation:

  • Feb 1: President Trump announces 25% tariffs on Canadian imports, with a 10% rate on energy products.
  • Feb 2: Canada retaliates with 25% tariffs on $107 billion of US goods, including alcohol and appliances.
  • Feb 3: Both countries agree to a 30-day suspension of tariffs to negotiate border security.
  • Feb 9: Trump warns of 25% tariffs on steel and aluminum imports, including from Canada
  • Mar 3: Deadline for negotiations. If no deal is reached, tariffs will be reinstated.

Helpful resources

Float’s commitment to Canadian SMBs

At Float, we’re proud to support thousands of Canadian SMBs with financial tools that help them navigate uncertain times. Whether through improved expense management, efficient payment solutions, or financial insights for smarter decision-making, we’re here to ensure your business stays competitive and resilient.

We’ve Raised $70 Million to Fix Canada’s Business Banking Problem

Float launched its first product in 2021, a single corporate card and a simple mission: cut through the red tape and give businesses the financial tools they need to move faster. The “big five” banks were notorious for underserving non-enterprise companies with high costs, low earning rates and some of the worst support experiences—all on top of antiqued or virtually non-existent software. Canadian businesses were—and still are—finding success despite their financial institutions.

Since then, we’ve kept that mission but expanded our financial platform with products to automate accounts payable, make reimbursements frictionless and surface real-time insights into company spending. Float now also offers virtual and physical cards in both CAD and USD, high-yield accounts and next-day fund transfers and payments, providing faster, more flexible alternatives to traditional banking services. Today, more than 4,000 businesses use Float to manage team spend, earn high-interest on cash reserves and save days of manual reconciliation.

But our ambition for Float is about more than a growing suite of products.

Over the past four years, our customers have told us that Float has revolutionized the way they do finance. Made their team’s work smoother and more efficient. Empowered employees and removed roadblocks. Matched their speed and sense of purpose. How they will be loyal to Float forever because it’s given them back hours they used to spend on tedious manual processes, time they can now put back into their business. As the son of a small business owner myself, I couldn’t be prouder and more grateful to be working alongside these owners, operators and finance leaders—the true backbone of our country.

And so today, I’m beyond excited to announce that we’re set to expand once again, backed by globally-recognized investors. Growth Equity at Goldman Sachs Alternatives is leading a $70 million Series B investment round to help Float continue building business finance products already trusted by Canadian brands of every size.

We have big plans. Funds raised in this round will go toward accelerating product expansion, continuing to attract top talent and expanding coast-to-coast, all driving toward that original mission of empowering Canadian businesses with the financial tools they need and deserve. This investment in Float is an investment in Canada.

But let me be clear about something.

Canada is at a tipping point. Our economic and social prosperity are at stake. Playing it safe is no longer an option. As a nation, we must aim higher by fostering innovation and removing barriers that make it harder to build businesses in Canada. We have to stop resting on the laurels of legacy institutions that no longer serve everyone.

At Float, we’re committed to being part of the solution by providing Canadian companies with greater access to capital, smarter automation, modern financial tools and expert support (that’s available more than just 9 to 5). We’re meeting businesses where they are and helping them get where they want to go: a stronger, more prosperous future.

For them, for Canada, for all of us.

Float Financial Announces $70 Million Investment Round Led by Growth Equity at Goldman Sachs Alternatives to Build Canada’s Most Complete Business Finance Solution

  • Growth Equity at Goldman Sachs Alternatives leads this funding round of over CAD$70M, joined by other prominent investors including OMERS Ventures, FJ Labs, Garage Capital and Teralys.
  • With the CAD$50M credit facility announced in February 2024—bringing total funding to over CAD$120M in the past year—this investment highlights Float Financial’s significant potential despite economic uncertainty.
  • Float will use the money to accelerate its product expansion, continue to attract top talent and expand its leadership in the Canadian market coast-to-coast.

TORONTO, Jan 13, 2024 — Float Financial, a business finance platform for Canadian businesses, today announced it has signed a CAD $70 million Series B financing round, which brings its total funds raised in the last 12 months to $120 million. The round is led by Growth Equity at Goldman Sachs Alternatives, with participation from OMERS Ventures, FJ Labs, Teralys and existing investor Garage Capital. Float’s range of business finance products is already trusted by big Canadian brands like Jane Software, LumiQ, Knix and more.

Float brings much-needed change to how Canadian businesses of all sizes spend, save and grow their money with a combination of innovative financial services and software. Since their November 2021 Series A, Float has seen 45x growth in total payment volume (TPV), 50x revenue, 30x increase in assets under management (AUM) and 140x expansion in credit issuance—all while achieving top quartile performance in capital efficiency. Float’s Series B investment round demonstrates its significant potential, with a higher valuation compared to its Series A, despite macroeconomic uncertainty.

In 2024, Float significantly expanded its expense management software and corporate cards offering to streamline how Canadian businesses manage their finances. With the addition of features to automate accounts payable, make reimbursements frictionless and surface real-time insights into company spending, Float helps businesses simplify their financial operations. Float now also offers virtual and physical cards in both CAD and USD, high-yield accounts and next-day fund transfers and payments, providing faster, more flexible alternatives to traditional banking services. The company plans to leverage the new capital to further broaden its product suite, attract top talent and expand its leadership in the Canadian market.

“Our financial system needs to match the speed and ambition of Canadian businesses if we want to thrive locally and compete globally. Float’s mission is simple: cut through the red tape and give businesses the financial tools they need to move faster. To access more opportunities. And to do it all easily, with the click of a button,” said Rob Khazzam, CEO of Float. “Today, 4,000 businesses use Float to manage team spend, earn high-interest on cash reserves and save days of manual reconciliation. This investment will fuel our mission to support thousands more with the financial solutions they need to lead Canada into the future.”

“Float’s impressive growth so early on is a testament to its Canadian focus, customer-centric platform and deeply committed team,” said Clare Greenan, an investor with Growth Equity at Goldman Sachs Alternatives. “We are thrilled to support Float in its next phase of expansion, as it makes innovative business finance solutions more accessible to Canadian businesses.”

In February 2024, Float secured a $50 million credit facility in partnership with Silicon Valley Bank (SVB), a division of First Citizens Bank. Existing venture capital and institutional shareholders from Series A, including Golden Ventures, Susa Ventures, and Tiger Global, demonstrated their confidence in Float’s future by remaining fully invested.

About Float Financial

Float is complete business finance for Canadian companies. We offer modern financial services, powerful software and industry-leading support designed for every company and stage of growth. Our integrated suite of products—including corporate cards, bill pay, expense management and high-yield accounts—gives finance teams everything they need to manage spending and cash flow efficiently, so they can keep pace with the demands of their business. To learn more, visit floatfinancial.com

About Growth Equity at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has more than $3.1 trillion in assets under supervision globally as of September 30, 2024.

Since 2003, Growth Equity at Goldman Sachs Alternatives has invested over $13 billion in companies led by visionary founders and CEOs. The team focuses on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare.

Media Contacts

Dana Krook
Content & Communications Lead
dana.krook@floatfinancial.com

416-992-7471

5 Best Bench Accounting Alternatives in 2025

Was your Canadian business impacted by the recent announcement from Bench Accounting about the service shutdown? While services have resumed following Bench’s acquisition, many finance leaders are still exploring alternative solutions due to the uncertainty—and hello, panic—that the initial announcement caused.

To help you make an informed decision about whether to stay parked with Bench or move on to greener platforms, we’ve compiled this guide to outline the details of Bench’s closure, the top alternative accounting software providers and how to migrate to a new solution. Make sure to check out our quick-view table below to compare key features, pricing and customer reviews.

Bench Accounting alternative bookkeeping solutions for Canadian SMBs

Whether you’re a startup, solopreneur, or established small business, there’s a Bench alternative out there for you. Let’s find the best fit for your business.

But first, some context.

Bench is shutting down. Or is it?

VC-backed bookkeeping platform Bench Accounting caused widespread panic among its customers after abruptly shutting down on Friday, December 27, 2024, locking thousands out of their accounts. The Vancouver-based start-up’s notice of closure left businesses that use its software scrambling for solutions, right as year-end and tax season loomed. But by the following Monday, payroll and onboarding tech company Employer.com announced its acquisition of Bench in a last-minute deal, and customer logins were restored.

But what about customer trust?

While plans are to revive Bench’s existing platform and allow customers to regain access to their data (with an option to either port their information or continue using the service as is), many challenges still remain. Chief among these is the impact of layoffs during the shutdown, which raises concerns about Bench’s service quality and platform reliability both during the transition and in the long term.

Bench’s former CEO and co-founder Ian Crosby released a statement on social media that further put into question the direction of the company over the past few years, following his abrupt dismissal.

Top Bench Accounting Alternatives

1. Pilot

Startup and small business focus: Pilot is an online bookkeeping and accounting service that caters to the needs of startups and small businesses. They offer bookkeeping, tax prep, and CFO services.

Accrual-basis accounting available: Unlike Bench, Pilot provides accrual-basis accounting in addition to cash-basis. This gives you a more accurate picture of your long-term financial health.

Integrates with top tools: Pilot connects with popular business tools like QuickBooks, Gusto, and Expensify to automatically import financial data. This saves time on manual data entry.

Pricing: Pilot offers three tiers, starting at $349 a month for Starter, $499 for Core and custom pricing for Plus.

Customer reviews:
“The consultative sales process made me confident in choosing Pilot for our accounting & tax needs, the onboarding process was smooth, and their online portal is eye pleasing, easy to use, and makes collaborating with our dedicated bookkeeper seamless.” Read more reviews from Capterra.

For a more detailed comparison of Pilot and Bench features, pricing, and reviews, check out this Pilot vs Bench comparison.

2. Finta

Built for startups: Finta offers a comprehensive, all-in-one accounting platform tailored specifically for startups, streamlining bookkeeping, taxes and financial insights within a single interface. This integration eliminates the need for multiple tools and services, providing real-time financial metrics such as cash flow, runway and burn rate, which are crucial for startup decision-making.

Ease of use for founders: Finta’s platform is designed to scale with startups, offering modern integrations with tools like Stripe, Gusto, Pulley and Carta, ensuring that as a startup’s financial management needs evolve, Finta can adapt accordingly.

Pricing: Finta offers three tiers, starting at $0 for Basic, $99 per month for Copilot and custom pricing for Assistant.Customer reviews: “Easy to use – Replaces spreadsheets and manual processes – More cost effective than competitor products – Unique approach to fundraising, making it easier to transfer funds from accredited investors.” Read more reviews from Capterra.

3. Kick

Automation and real-time insights: Kick automates bookkeeping tasks with real-time transaction categorization, personalized deduction management and customizable rules, providing immediate visibility into revenue and expenses.

Comprehensive financial tools: Offers features like multi-entity support at no additional cost, tax-ready financial statements and double-entry accounting for seamless collaboration with tax advisors or CPAs.

Scalable and efficient solution: Designed to save time and enhance accuracy, Kick outshines competitors like Bench by offering more robust tools such as real-time insights and automation, catering to modern business needs.

Pricing: Kick offers four tiers, starting with a free version, then moving to $35 per month for Basic, $125 per month for Plus and custom pricing for Enterprise.

Customer reviews: “I’ve had the chance to use Kick for a few months now, and as someone who does not like bookkeeping side of my business, I’m stoked there’s finally something user friendly and smart that I can use to automate my books. It’s literally built for businesses like mine, which are all online and have multiple streams of income.” Read more Product Hunt reviews.

Kick is the recommended solution by the Bench’s team and they offer a number of rewards for the customers who signup with them as part of the shutdown.

4. Quickbooks Online

Popular accounting software: QuickBooks Online is one of the most widely-used accounting solutions, with over 4.5 million subscribers worldwide. It offers a range of features for small businesses, including bookkeeping, invoicing, and financial reporting.

Advanced features available: While the basic QuickBooks plan includes essential bookkeeping tools, upgrading to a higher tier unlocks advanced features. These include inventory management, project profitability tracking, and budgeting.

Extensive app ecosystem: QuickBooks has its own app store with over 650 integrations for sales, marketing, operations, and more. There’s also a mobile app for accounting on the go.

Pricing: Quick Books offers four tiers, starting at $24, $54 for Essentials, $80 for Plus and $160 for Advanced. They also offer a free trial for 30 days and significant savings for the first six months.

Customer reviews: “I am enjoying using the online version and look forward to all the incentives for bringing and setting up clients, like revenue share and affiliate commissions. QB still remains the easiest and most valued bookkeeping software that I will recommend. There are video tutorials for literally everything.” Read more reviews from Capterra.

5. Fincent

Streamlined bookkeeping and tax support: Fincent combines intuitive software with human bookkeepers to deliver accurate, balanced books by the 15th of every month, alongside year-round support for business and personal tax filings.

Comprehensive financial tools: Features include simplified invoicing and billing, digital payment requests, and integration with payment methods like ACH, credit or debit cards, ensuring seamless financial operations.

Scalable and flexible solution: Offers support for both accrual and cash-basis accounting, integrates with tools like QuickBooks, and provides a modern, adaptable alternative to traditional services like Bench Accounting.

Pricing: Fincent offers three tiers, starting at $299 per month for Basic, $899 for Core and $1549 for Power.

Customer reviews: “Fincent takes care of everything related to accountancy and they did all the work I didn’t want to do. They just did it and made my life much easier. We are a graphic design studio and I was pretty new to accounting and bookkeeping. From the moment I started using Fincent, they took care of everything for me. They did the technical configuration, set up everything from scratch, and even set up everything for me to get my taxes done right.” Read more reviews from Capterra.

How to Choose the Right Bench Alternative

Finding the right replacement for Bench starts with understanding your business’s needs. Whether you prefer hands-on support or a DIY approach, here are the key factors to consider to make an informed choice.

Bookkeeping vs full-service accounting

Some Bench alternatives like Pilot and Finta offer bookkeeping and tax services, similar to Bench. Others like QuickBooks are DIY accounting software. Consider how much hands-on support you need.

Pricing model

Bench and the Bench alternatives listed above all charge flat monthly rates based on your monthly expenses, using various tiered subscription plans. In contrast, other bookkeeping services often charge hourly. Use your must-have features list (see tip in the migration guide below) to help you compare pricing models and find the best value for your business.

Automation features

Look for a Bench alternative that automates manual tasks like data entry, invoicing, and reporting. This will save you time and reduce errors.

Integration with existing tools

Choose an accounting solution that connects with the business tools you already use, such as your POS system, payment processor or payroll service. This will avoid duplicate data entry.

Reporting capabilities

Make sure your Bench alternative generates the financial reports you need for tax purposes and decision-making. These may include a profit and loss statement, balance sheet and cash flow statement.

Customer reviews

Read reviews from verified users on third-party sites like Capterra and G2 to see how each Bench alternative stacks up in terms of features, ease of use, customer service and value for money. Make sure to read both the pros and cons to get a realistic view of the software in regular use.

Step-by-step guide: How to migrate from Bench Accounting to a new provider

Follow these steps to ensure a seamless migration and set your business up for success with your new bookkeeping solution.

  1. Download your data

The first thing you should do is download all of your data from Bench. Login to the website (now restored) and follow the prompts to export your financial records. While there is no longer a deadline of Friday, March 7th at 5:00pm ET, it’s best to retain access to all your information as soon as possible.

  1. Schedule demos

Most accounting software and bookkeeping services offer free demos or trials. Take advantage of these to see the platform in action and ask questions.

  1. List your must-haves

Have a list of your must-have features and integrations ready before you go into these demos. This could include invoicing, payroll, or project tracking. Use this checklist to evaluate each alternative and ensure it meets your needs.

  1. Consider migration services

If you have historical financial data in Bench, look for an alternative that offers migration services to transition your records. Some may charge a fee for this.

  1. Allow a transition period

Give yourself time to get comfortable with your new bookkeeping solution. It may take a few months to fully transition from Bench.

  1. Notify stakeholders

If you switch from Bench to another bookkeeping service, notify any stakeholders who may be affected, such as investors, lenders or your accountant.

While it may take awhile to explore these Bench alternatives and find the solution that’s right for your business, this guide should give you a place to start the process. The key is to prioritize your business’s unique needs and take the transition one step at a time to ensure a smooth and effective switch.

Also looking for a complete business finance solution designed for Canadian businesses? Explore Float!

Get Started for Free and see how we can help you streamline your bookkeeping, invoicing and expense management.

What Bank of Canada Rate Cuts Mean for SMBs in 2025

Bank of Canada rate cuts are gaining momentum. But is your business ready to make the most of them?

Many follow the Bank of Canada’s decisions closely—individual consumers, business leaders and investors here and abroad—because those decisions affect so many aspects of day-to-day life, from the cost of groceries to mortgage payments to business forecasting. In fact, high interest rates and fees on financial products rank as the second-biggest financial challenge for SMBs in 2024, surpassed only by the burden of high operating costs.

Right now, many are crossing their fingers for another rate cut to bring some relief, freeing up cash flow and injecting a hint of optimism across the country.

But for small- and medium-sized businesses (SMBs) in particular, a Bank of Canada interest rate cut is only as valuable as the strategy in place to capitalize on its benefits. How will a rate cut change your borrowing decisions? What about earning on cash? Where will it boost spending, if at all?

This article explores what a Bank of Canada rate cut is, what it means for SMBs across the three main pillars of money management—borrowing, earning, and spending—and how to strategically leverage lower interest rates to thrive in this next phase of Canada’s economy.

What is a Bank of Canada rate cut?

A Bank of Canada rate cut is a decision by the country’s central bank to lower the overnight interest rate for lending in an effort to keep inflation low, stable and predictable, ideally around 2%. Major banks and other lenders use this as a benchmark rate to set their prime rates, so changes to the Bank of Canada overnight rate cascade through the financial sector rapidly following a rate decision.

Part of the larger monetary policy framework, rate cuts (versus rate hikes) are a response to economic slowdowns, aiming to stimulate growth by making it cheaper to borrow, which in turn encourages spending and investment.

Created in response to the Great Depression in 1934, the Bank of Canada is a crown corporation designed to help maintain Canada’s financial system across five main areas of responsibility: 

  1. Monetary policy –  set inflation-control target and flexible exchange rate
  2. Financial system – foster stable and efficient financial system, which includes banks, credits unions, markets and clearing/settlement systems
  3. Currency – design, print and distribute money
  4. Funds management – provide services to the Government of Canada
  5. Retail payments supervision – oversee payment service providers, ensuring standards and minimizing risk

Why does the Bank of Canada decide to cut interest rates?

A lot of factors go into deciding if and by how much the Bank of Canada decides to cut interest rates, including economic indicators such as:

  • inflation rates
  • employment data
  • GDP growth
  • consumer spending
  • business investment trends

Global economic conditions, currency exchange rates, and financial market stability also play a role in the decision, as well as household debt levels, the housing market and how effective the previous rate changes have been in influencing economic activity. It’s a tricky balancing act between fostering economic growth (good for everyone) without triggering a rise in inflation (very, very bad).

So what does a rate cut indicate about Canada’s economic outlook?

Ultimately, a rate cut is a sign of an economic weakness. It means the Bank of Canada, and by extension the government, believes the economy is suffering from extremely low growth and wants to encourage both consumers and businesses to start spending more.

5 years of rates hikes and rate cuts

Leading up to the pandemic, interest rates saw only minor fluctuations since inflation was relatively stable, especially from 2018 to 2020. But when Covid hit in early 2020, the Bank of Canada cut interest rates to 0.5% because the pandemic caused widespread economic disruption, leading to a sharp decline in consumer spending, business activity and overall economic growth. The drastic rate cut was aimed at stimulating the economy by making borrowing cheaper and encouraging investment and consumption. 

The result?

A temporary boost to economic activity and a period of increased liquidity in financial markets. But as the economy began to recover, inflation soared, reaching a multi-decade high of 8.1% in 2022. During this period, the cost of borrowing for businesses hovered around 10%.

Still, the Bank of Canada kept the interest rate hovering just above zero until March of 2022, when they announced their first in a series of back-to-back hikes—sometimes jumping as much as 1% at a time—which carried through to the end of the year and into the beginning of 2023.

The Bank of Canada held steady, at 5.25%, for over a year before inflation fell (and held) closer to the 2% target. June of 2024 saw the first of five rate cuts that year, with another quarter point at the top of 2025. The Bank of Canada also declared an end to quantitative tightening. In simple terms, they’re signaling confidence that inflation is under control and easing restrictive policies on the economy. It’s a way of telling Canadian businesses that now is the time to invest in growth.

Source: Statistica

Bank of Canada interest rate schedule (2024 & 2025)

The Bank of Canada makes an overnight rate announcement eight times per year, or every six weeks.

The table below shows the scheduled dates for rate announcements in 2024 and 2025.

Bank of Canada Interest Rate Announcement schedule

How does a Bank of Canada rate cut impact Canadian SMBs?

When considering the impact of interest rate cuts on Canadian SMBs, we can focus on three key areas of money management: borrowing, saving, and spending.

Impact on borrowing

Many SMBs have variable interest rates, which means the cost of borrowing money can fluctuate greatly with these Bank of Canada announcements. When a rate cut occurs, the cost of servicing your business’s debt decreases, reducing your debt-related expenses and freeing up capital for other priorities. Lower borrowing costs can make it more appealing to take on new loans for growth initiatives, such as expanding operations, upgrading equipment or hiring additional staff.

Impact on earnings from cash

The flipside of lower borrowing costs is that interest-earning rates also decline, which makes saving cash a relatively less attractive option for businesses. As a result, businesses may opt to allocate funds toward investments or operational expenses rather than parking them in savings accounts that yield minimal returns.

Another consideration is the impact on long-term financial planning. With lower interest rates, you may need to reassess your strategy for building cash reserves, especially if you have relied on interest income as part of your financial cushion over the past few years.

Impact on spending

Rate cuts incentivize businesses to spend more, which means there is generally more money floating (excuse the pun) around in the economy and less being stockpiled for a rainy day/year/decade. For businesses that borrow, a rate cut can translate into greater access to credit and increased funds available for spending on growth initiatives, operational improvements, or day-to-day needs.

Despite the incentives to spend, many Canadian SMBs are still burdened by high expenses leftover from the pandemic-induced inflation. Rising costs for supplies, wages, and other overhead have eaten away at their margins, leaving some businesses hesitant to fully embrace increased spending. “We’ve been able to control the labor line at our stores to avoid uncontrollable bleeding, but really need to build the sales volume back up to get to a healthy margin,” writes one Ontario restaurant owner on an SMB thread on Reddit. “Labor and food cost has been a problem for us the last 18 months as well.”

But that’s not the only reason SMBs are hesitant to pull the spending trigger. There’s also a lack of trust in the government’s ability to manage economic volatility, which adds another layer of caution. Worries about the long-term stability of the economy and future financial imbalances and even unexpected policy reversals run high among business and finance leaders alike.

While rate cuts open up a range of opportunities for growth, SMBs should weigh their decisions carefully before making major changes to any of the above areas of money management.

But wait, there’s more: Increasing gap between loonie and USD

While Canada has implemented several interest rate cuts this year, the US has only made one, creating a growing disparity between the two countries’ interest rates. This gap directly weakens the value of the Canadian dollar (the loonie) against the US dollar.

But why does a weaker loonie matter?

As an export-heavy economy, Canada benefits in some ways from a weaker dollar. It makes Canadian products and services more affordable for Americans, potentially boosting exports. However, this advantage is offset by the looming threat of tariffs, which could make these goods more expensive for US buyers and reduce their appeal.

On the flip side, if your business relies on foreign inputs—whether that’s paying for tools, software, contractors or staff in USD—the weaker loonie can drive up costs significantly. Anything priced in US dollars becomes more expensive, putting additional strain on Canadian SMBs.

Cutting interest rates at three times the pace of the US also reflects a weaker Canadian economy by most objective measures. With a less competitive currency, the loonie becomes less attractive to global investors, further reducing demand and investment in Canada. While this does help exporters, it highlights the broader challenges Canadian SMBs face in navigating a fluctuating economy and an increasingly devalued currency.

7 tips for making the most of a Bank of Canada rate cut

A Bank of Canada rate cut can be a game-changer for SMBs. But making the most of it requires a clear strategy across borrowing, earning and spending—three key areas where thoughtful decisions can drive long-term growth and stability.

Borrowing

A rate cut is the perfect opportunity to revisit your borrowing strategy. Here’s how to make the most of it.

1. Refinance existing debt: If refinancing at a lower rate is an option for your business, take advantage of it. Whether a fixed or variable rate is better depends on your business goals and financial forecasts. Variable rates can be particularly appealing during a rate cut cycle, as they allow you to capitalize on ongoing reductions.

2. Leverage your finance team for borrowing strategies: If you have a Director or VP of Finance, this is their time to shine. They can provide strategic guidance on how to structure debt in a way that aligns with your business growth. Even if your finance team is small, ensure their expertise is focused on strategic tasks like optimizing borrowing decisions—not wasted on manual processes like expense management. A recent Float survey found that half of all Canadian SMBs spend up to 40 valuable hours per month on payments and reconciliation processes. Accounting automation with tools like Float can free up their time to make smarter, data-driven decisions.

Earning

Lower interest rates mean banks and lenders are likely to reduce the interest they pay on earnings. To make the most of your cash reserves, be proactive.

3. Shop for the best rates on cash reserves: Not all financial institutions are created equal. Even though rates will drop across the board, some started with higher baseline rates than others. Look for options with more competitive offerings. For instance, Float Yield is currently offering 4% interest.

4. Involve your controller for strategic earning research: Your controller can help evaluate earnings opportunities by comparing options and identifying accounts or tools that maximize your interest earnings. Like your finance team, their expertise is most valuable when focused on strategic contributions, not tedious administrative tasks (hint: a good time to calculate how much money you can save with software).

Spending

This is the big fish, where you can have the most impact on your business. But it does require a thoughtful approach.

5. Analyze your ROI before increasing spend: Now is the time to evaluate your spending decisions carefully. Create ROI frameworks to identify what’s working well in your business and double down on those areas. For example, where did you see the best returns over the last five wild years? Which products, services, or strategies accelerated your growth? Focus your spending on those proven areas.

6. Invest in high-return areas: Consider whether spending more on specialized talent, operational tools to improve efficiency, or R&D for new product development could generate a strong return. These areas can be game-changers if strategically timed with a rate cut.

7. Be cautious about debt in unproven areas: Avoid piling on debt for areas that don’t have a proven return. This isn’t the time for risky investments or overspending. Use ROI calculators or simple ROI math (gross profit divided by costs) to validate whether a spending decision is worth pursuing.


Even with a small finance team, a CFO or controller can bring a strategic lens to these decisions, helping you allocate resources effectively while steering clear of unnecessary risks. Investing during a rate cut can help your business grow, but only if you prioritize thoughtful, high-ROI opportunities.

Simplify Holiday Spending with Float

The holiday season is a time for celebration, connection, and a bit of indulgence. But for finance teams, it can also mean juggling higher expenses and seamlessly managing every transaction. With Float, holiday spending is easier and more efficient—so you can focus on the festivities. Here’s how Float empowers teams to spend smarter this season:

Handle Last-Minute Holiday Party Expenses with Ease

Holiday parties are all about celebrating—but they often come with unexpected, last-minute expenses. Whether it’s arranging last-minute transportation, covering a surprise vendor fee, or buying additional supplies, Float Cards ensure these costs are managed effortlessly. With real-time spend tracking and instant approvals, your team can handle any unplanned holiday costs without breaking a sweat—keeping the focus on the festivities, not the finances.

Tip: Create virtual cards so your team can catch an Uber – Creating Virtual Float Cards
Tip: Add virtual cards to your mobile wallet to pay up to CAD$250 at vendors accepting contactless payment – Adding Float cards to Mobile Wallets

Top-Up for the Team Dinner in Seconds

Celebrating at a restaurant with the team? Holiday dinners can be memorable but may exceed preset spending limits. Float’s instant card top-ups ensure your team won’t face any interruptions at the table. Need a quick limit increase? It’s just a few clicks away, so your team can focus on sharing laughs and good food, not dealing with awkward payment delays.

Tip: Enable your managers and spenders to request top-ups for last-minute celebrations – Setting/Editing limits on Float cards

Streamlined Travel for Out-of-Town Parties

For employees traveling to attend holiday celebrations, Float’s Virtual Cards make booking flights and hotels simple. Set up a card in seconds and manage travel expenses with ease. With precise spending controls and real-time tracking, you’ll always know where the budget stands—even when your team is on the go.

Tip: Create virtual cards to book flights and hotels rooms – Creating Virtual Float Cards

Hassle-Free Reimbursements for Every Holiday Scenario

Not every employee has a Float card? No problem! Float’s Reimbursement tool makes it easy for employees to submit their holiday expenses and get paid back quickly. Whether it’s a festive outfit, client gifts, or a holiday lunch, reimbursing team members is as simple as uploading a receipt.

Tip: Set up direct payout to get reimbursed without delays – Configuring Direct Payouts for Reimbursements

A Holiday Win for Finance Teams

The benefits of Float go beyond the employee experience—Finance teams and admins love it too. With Float, finance professionals gain real-time visibility into every transaction, ensuring complete oversight during the busiest time of year. Automated spend policies eliminate manual approvals and reduce admin headaches, while integration with accounting software keeps everything organized.

This means fewer surprises during month-end reconciliation and more time to focus on strategic planning—or maybe even enjoying some holiday cheer themselves!

Why Float?

Float makes holiday spending stress-free with smart corporate cards, instant approvals, and automated controls. It’s a modern solution designed for finance teams and employees who want to celebrate without the usual headaches.

How US Policy Shifts Could Affect Your Business

With the election results being finalized last week and a new US administration on the horizon, we wouldn’t be surprised if you and other small and medium-sized businesses (SMBs) are wondering what this change means for the Canadian economy. Looking back, the optimism Canadian SMBs have shown in recent years is impressive—87% of SMBs feel confident about their current performance, with half expecting year-over-year profit growth (Float’s Q3 2024 SMB Survey). However, as the US remains Canada’s largest trading partner, the rapidly changing international environment could test that confidence. You may need to navigate the impacts of new US policies, tariffs, and potential disruptions in cross-border trade. Experts are suggesting that Canadian SMBs proactively prepare for potential shifts ahead. Read on to find out what you can expect in the coming year.

Rising Costs and Financial Strain

One of the most immediate changes to watch for is a potential increase in tariffs on US imports. If your business relies on affordable access to US goods & services, this could add significant pressure to your bottom line. This accents an already existing challenge for Canadian small businesses who list high operating costs as the #1 challenge that they face today (Float’s Q3 2024 SMB Survey). Now could be the time to consider alternative ways to drive down your operating expenses by exploring new suppliers, finding efficiencies in processes, or planning in advance to help soften the impact of any upcoming policy changes.

Access to Capital and Credit in 2025

Another area to keep an eye on is borrowing conditions. Changes in US fiscal policy could lead to rising interest rates in Canada (sound familiar?), affecting your ability to secure affordable financing or impacting current credit that is dependent on variable rates. This may be especially challenging if your business is relatively new, as 70% of new SMBs report difficulty accessing capital, with over half struggling with insufficient cash flow (Float’s Q3 2024 SMB Survey). Tighter credit conditions could make it tougher to fund your growth, expansion, or other critical areas of your business in the coming year. 

Revenue Stability and Growth: Preparing for Potential Trade Disruptions

If your business relies on exports, you could face some added uncertainty in the coming years  as the incoming administration looks to revisit historic trade agreements in North America (Canada, US, Mexico). For SMBs that depend on cross-border sales, any revisions to trade terms could end up impacting your revenue streams. In our latest survey, we learned that many SMBs remain optimistic about the future, with over 60% feeling positive about growth and 50% expecting profit gains in 2024 (Float’s Q3 2024 SMB Survey). The recent changes don’t have to dampen this. To fuel this optimism, it’s essential to stay informed about trade policy changes and think about ways to diversify your sales or business. This could mean starting to explore new product lines or experimenting with different local target markets before there is increased pressure to do so.

Inflation and Cash Flow Visibility: Keeping Operations Steady

Trade policy shifts can also lead to currency fluctuations, which may weaken the Canadian dollar and, in turn, increase the cost of US goods and services for Canadians. If your business already faces challenges with inconsistent revenue and cash flow, inflation could add more complexity. Improving your cash flow visibility and predictability can be crucial here. Many SMBs report challenges with this—43% say disconnected financial tools hinder their cash flow visibility (Float’s Q3 2024 SMB Survey). Financial reporting and forecasting tools can be key to navigating rising costs while keeping your operations steady.

Financial Processes and Integration: Streamlining for Resilience

Efficient financial processes are always important, but they’re even more critical in times of economic change. If you’re one of the 55% of SMBs whose financial tools don’t integrate well, or if you find reporting cumbersome, streamlining these processes could help you respond faster to market dynamics (Float’s Q3 2024 SMB Survey). Strong financial practices can help you stay competitive as the economic environment shifts. As conditions change, a proactive approach to financial management can help you maintain growth and resilience. By optimizing your financial processes, exploring alternative funding sources, and diversifying your revenue, your business can stay adaptable and well-positioned for whatever 2025 may bring.

If you’re interested in learning more about how Canadian SMBs like yours are forging ahead through uncertainty, check out our SMB Survey results below.

Survey: Float Financial Finds Canadian SMB Growth Ambitions Hindered by Inadequate Financial Ecosystem

TORONTO — October 23, 2024 — A new survey conducted at the close of Q3 2024 reveals a complex landscape for Canadian small and medium-sized businesses (SMBs). While projecting optimism and resilience in the face of economic uncertainties, these businesses simultaneously contend with significant financial and operational challenges. The study underscores an urgent need for enhanced institutional support and more efficient financial tools specifically designed to help SMBs access capital, manage finances effectively, and focus on strategic growth.

The State of SMB Finance in Canada research study, conducted by Float Financial, the leading business finance platform for Canadian businesses, surveyed nearly 700 SMB owners and operators. The study was designed to uncover the complexities of SMB management and the disconnect between these businesses and the traditional financial ecosystem in which they operate. The accompanying infographic provides insights on their challenges and opportunities for innovative financial services that cater to the unique needs of SMBs.

“Canadian SMBs are ambitious and optimistic, but they’re being held back by an unmotivated banking sector and outdated financial tools and processes,” Rob Khazzam, co-founder and CEO, Float Financial. “The current financial ecosystem is stunting the growth of the very businesses that drive our country’s economic engine, and they deserve better. At Float, we recognize that SMBs can’t afford to wait for the financial industry to catch up. That’s why we’re leading the charge in reimagining financial services, and our approach is simple: deliver immediate value through higher returns, flexible funding, and solutions that drive efficiency, while constantly innovating to stay ahead of our customers’ needs.”

Resilient optimism meets financial reality: SMBs navigate significant financial pressures

Canadian SMBs are displaying remarkable resilience and optimism as they enter the final quarter of 2024. A striking 87% of SMB owners and operators express confidence about their current performance, with 60% feeling more optimistic than a year ago. This positive outlook is bolstered by positive profit projections, with nearly half (49%) of respondents anticipating year-over-year profit growth exceeding 10%. 

However, this optimism exists alongside significant financial challenges. SMBs are faced with high operating costs (43%), steep interest rates or financial product fees (40%), inconsistent revenue (33%), insufficient cash flow (29%), and difficulty accessing capital (25%). Worryingly, four out of 10 (40%)  report that their financial difficulties have escalated over the past year, aligning with broader economic challenges. Persistent inflation, high interest rates, and global supply chain disruptions have created a particularly challenging environment for SMBs, which often have less financial cushion to weather economic storms compared to larger corporations.

Despite these hurdles, SMBs remain growth-oriented. With additional capital, 38% would prioritize expanding and improving operations, while 33% would invest in human capital through hiring or improving compensation. One in three (33%) would build cash reserves, and 32% would allocate funds to developing new products or services.

The hidden cost of banking inefficiencies: Delays and cumbersome processes strain SMB finances

Frustration with traditional banks is mounting among SMBs, who feel their needs are being overlooked. Almost six out of 10 SMBs are unhappy with interest rates on savings accounts (59%) and cashback / rewards programs (58%), and half (50%) find cash balance yields uncompetitive. 

The inefficiencies of traditional banking systems extend beyond being merely inconveniences — they actively contribute to financial strain for SMBs. For example, insufficient cash flow is a major concern for 65% of SMBs dealing with long processing times for financial transactions and 59% experiencing lengthy loan approval processes. Low credit limits on business credit cards  and high interest rates or fees on financial products are also major pain points, with 50% and 41% of SMBs struggling with these issues respectively reporting worsening financial challenges over the past 12 months.

The overall value proposition of banks is also under intense scrutiny. More than half of SMB owners and operators believe banks lack understanding of their unique needs (51%) and are not interested in supporting them (52%). Customer service is a key friction point, with nearly two-thirds (64%) reporting inadequate support. This perceived lack of support has tangible consequences — 45% of SMBs who do not feel supported by their banks report that their financial challenges have worsened over the past year. And to top it off, nearly half (47%) of all SMBs feel their bank’s financial insights do not help them make better business decisions.

Newer businesses face heightened financial challenges and dissatisfaction with banking: SMBs that are 0-5 years old are more likely than well-established businesses (more than 20 years old) to report struggles with accessing capital (70% vs. 21%) and insufficient cash flow (56% vs. 48%). They also report significantly higher levels of dissatisfaction with banks, reporting that traditional banks are not interested in supporting them (63% vs. 39%) and provide inadequate customer service (72% vs 52%).

Business leaders underestimate daily fiscal challenges while finance teams sound the alarm: There is a significant disconnect between the leadership (CEOs, executives, owners) and the financial operators (accountants, finance executives, finance management, ops / admin) of SMBs in perceiving financial challenges. Financial operators consistently report higher levels of concern across key areas such as operating costs (80% vs. 69%), cash flow issues (56% vs. 47%), and manual data entry burdens (72% vs. 59%). They have a more acute awareness of the day-to-day financial hurdles and inefficiencies that may be overlooked by leadership focused on broader strategic issues.

The SMB financial bottleneck: Outdated tools and processes block business growth

Canadian SMBs face significant operational challenges in managing their finances effectively. More than half (52%) find their current financial reporting processes inefficient, and one-quarter (25%) report having inefficient financial processes or systems overall. Two out of three (66%) SMBs report that their team spends too much time on manual data entry, and half (50%) spend 10 to 40 hours a month on payments and reconciliation processes. Alarmingly, 51% of SMBs encounter errors in their financial records that require correction, casting doubt on the reliability of information used for critical business decisions. Overall, 43% of SMBs operate without good visibility into their cash flow or the ability to predict potential problems, severely hampering their ability to make informed decisions and plan effectively.

SMB tools often exacerbate financial difficulties:  More than half (55%) of SMB owners and operators report their current financial tools do not integrate well with each other, and nearly half (49%) of this group feel their financial challenges have intensified over the past year. In fact, SMBs using poorly integrated tools are more likely than businesses using streamlined tools to report insufficient cash flow (57% vs. 46%) and dramatically poorer visibility into their cash flow (60% vs. 30%). 

Seven out of 10 (70%) SMBs who do not have a single source of truth for financial data report poor visibility into cash flow and more than half (51%) report worsening financial challenges over the past 12 months. Comparatively, among SMBs operating with a more holistic view of business performance, only 24% and 36% report the same. 

When it comes to using financial tools and platforms, even the user experience and design play a crucial role in financial health. More than half (52%) of SMB owners and operators find their systems clunky and unintuitive. Compared to those using user-friendly platforms, these SMBs are more likely to report insufficient cash flow (63% vs 45%), poor cash flow visibility (58% vs 29%), and worsening financial challenges (47% vs 31%). 

Empowering SMB success through financial innovation

The State of SMB Finance in Canada study reveals a stark contrast between SMB optimism and the reality of their financial ecosystem. They are hindered by an outdated financial infrastructure and inefficient tools and processes, which directly impact SMBs’ operational capabilities, financial stability, and growth potential.

The time is now for financial institutions and fintech companies to reimagine Canada’s financial infrastructure with SMBs in mind, focusing on three critical pillars: 

  1. Speed: Accelerating financial momentum by ensuring money moves as swiftly as business happens;
  2. Access: Unlocking access to capital to provide SMBs with personalized, readily available funding options; and, 
  3. Ease: Simplifying financial management with integrated, user-friendly tools that free up valuable time for SMBs to focus on core business activities and growth.

Float builds its products and solutions on these three pillars, recognizing their importance not just for individual businesses but for Canada’s economic future as a whole. The company’s commitment to SMB empowerment is reflected in its easy-to-use business finance tools and tailored solutions.   

Financial institutions and fintech companies have the opportunity to not only better serve the SMB market but to also play a pivotal role in driving economic growth and innovation in Canada. The optimism and resilience demonstrated by SMBs, coupled with the right financial tools and support, could unlock significant potential for this vital sector of the economy.

Resources

Survey infographic: The State of SMB Finance in Canada, 2024

Float Financial’s manifesto: The SMB Manifesto: Reimagining a Financial System that Actually Works

Research methodology

Survey responses were collected by Float Financial from 682 SMB owners and operators in Canada from September 30 to October 6, 2024. The findings highlight the complex financial landscape navigated by Canadian SMBs, including their challenges, aspirations, and the critical need for innovative financial solutions tailored to their unique needs. 

About Float

Float is on a mission to simplify finance for Canadian companies. We empower businesses with financial solutions to eliminate complexity and unlock opportunities. Our integrated suite of products—including corporate cards, bill pay, reimbursements, and financial services—provides everything needed to manage spending and cash flow efficiently, allowing teams to focus on what truly matters: growing their business. To learn more, visit www.floatfinancial.com

Review of Float’s Platform Demonstrates How Canadian Businesses Can Streamline Financial Operations

Toronto, Ontario, October 21, 2024 – Float is making waves in the expense management space. A recent review by CardRates.com showcases how we’re transforming finance for Canadian businesses, with the unique ability to pair corporate cards with accounting software. In their piece, “How a Money Services Business Pairs Finance and Software to Streamline Corporate Spend Management,” CardRates delved into Float’s innovative approach to simplify and optimize corporate spending. Businesses using Float gain better control, improved transparency, and seamless automation in their financial management workflows.

Grow Your Business With Float

Canada’s only finance & corporate cards platform that helps businesses save 7% on their spend.

Streamlining Corporate Spend with Smart Technology

CardRates.com highlights how Float’s platform simplifies expense management, empowering companies to gain real-time visibility and control over spending. Through a combination of smart corporate cards, automated expense tracking, and next-day bill payments, Float provides Canadian businesses with the tools they need to operate more efficiently. The platform’s automation features eliminate tedious manual processes, allowing finance teams to focus on higher-value tasks, like strategic planning and decision-making.

Float’s powerful integration capabilities with accounting platforms further ensure that all financial data remains organized and up-to-date. Businesses can automate receipt matching, expense categorization, and reporting, which improves accuracy and reduces the risk of errors.

Customized Solutions for Canadian Businesses

Designed specifically for Canadian businesses, Float offers more than just expense management. The platform delivers next-day bill payments, high-yield cash accounts, and customizable spend controls, allowing businesses to manage their finances with unprecedented flexibility. The review emphasizes Float’s commitment to serving the unique needs of Canadian companies, from small and medium-sized enterprises (SMEs) to fast-growing startups.

According to CardRates.com, users of Float’s platform see significant time savings, streamlined workflows, and better financial decision-making. The user-friendly interface, combined with advanced features, positions Float as a key player in the Canadian fintech space.

Float’s Innovative Approach to Financial Control

Float believes that modern businesses should have access to financial tools that not only simplify operations but also drive growth. By offering real-time reporting and spending analytics, Float gives companies the insights they need to make informed financial decisions. The platform’s commitment to empowering businesses through technology sets it apart from traditional financial institutions, which often lack the flexibility and innovation needed by fast-growing companies.

Float’s success, as noted in the CardRates.com review, is rooted in its ability to provide powerful financial solutions while maintaining a focus on ease of use and automation. This makes it an attractive choice for Canadian businesses looking to optimize their financial management processes.

Continuing Float’s Mission

We’re proud to be recognized by CardRates.com and continue our mission to bring modern financial solutions to Canadian companies, helping them grow faster and more efficiently. Check out the full article here.

Learn how Float can help your business streamline financial workflows

Float is Canada’s only all-in-one corporate cards, reimbursements, and bill pay platform that helps customers:

  • Earn cashback on all categories and save on FX
  • Generate 4% interest on funds held with Float
  • Eliminate expense reports and receipt chasing
  • Close the books 5x faster at the month-end

Want to learn how companies like Clutch, Neo, Knix, and 1,000s of other Canadian businesses on average save 7% of their monthly spend with Float? Get started with Float today by clicking the button below!

Want to learn more before singing up? Book a demo today to learn more about the product from our team!