Best Business Credit Cards in the United States

Best Business Credit Cards in the United States

This article details the best business credit cards in the United States. To see the best business credit cards in Canada, click here.

Travel miles, reward points and cash back — the reward programs for business credit cards almost as tempting as the sugary breakfast cereal with the leprechaun on the front of the box.

A business credit card can be an incredibly convenient tool to help you build a credit history, separate business and personal expenses and manage cash flow. But what are the best business credit cards in the United States and how can you tell which one will be best for your business?

In order to provide businesses using our financial management tools and reading our blog the tools they need to sustain a healthy cash flow, we decided to do a little research ourselves. Here’s what we found out about the best business credit cards in the United States:

The 15 best business credit cards in the United States

We sourced the comparison sites and the table below shows the cards that appeared time and again on other lists of the best business credit cards in the United States.

American Express®

Business Gold Rewards Card

Card Type: Charge card

Rewards: 3X points per one specified category: airfare, advertising, fuel, shipping or computer hardware and software. | 2X points the remaining categories. (3X and 2X points apply only to the first $100,000 spent.) | 1X for all other purchases.

Employee Cards: Free

Interest: As it’s a charge card, you are expected to pay in full at the end of each month. If you have to carry a balance, the interest rate is 19.99% and the penalty rate is 25.99%.

Annual Fee:  $175 – Free for the first year.

Personal Guarantee: Required

Welcome Offer: 50,000 points after you spend $5,000 in the first 3 months.

Best For: Established businesses who want flexibility in their rewards an lower annual fee.

Business Platinum Card®

Card Type: Charge card

Rewards: 5X points on flights and prepaid hotels on amextravel.com. | 1.5X points on eligible purchases of $5,000 or more. | 1x for all other purchases.

Employee Cards: Free

Interest: As it’s a charge card, you are expected to pay in full at the end of each month. If you have to carry a balance, the interest rate is 19.99% and the penalty rate is 29.99%.

Annual Fee: $450

Personal Guarantee: Required

Welcome Offer: 50,000 points after you spend $10,000 and an extra 50,000 points after you spend an additional $15,000 within the first 3 months.

Best for: Established businesses with large travel budgets. This card also gives you access to American Express Global Lounges at airports around the world.

Blue BusinessSM Plus Card

Card Type: Credit card

Rewards:  Earn 2X points on everyday business purchases up to $50,000 with no category restrictions.

Employee Cards: Free

Credit Limit: Adjusts with usage.

Interest: 0% introductory APR for the 15 months. | After that your APR will be a variable rate, 12.99%, 16.99% or 20.99%, based on your business’ creditworthiness.

Annual Fee: None

Personal Guarantee: Required

Welcome Offer: Earn 10,000 extra points after $3,000 in eligible purchases within the first 3 months.

Best For: Businesses looking for one of the longest introductory APR offers on the market.

SimplyCash® Plus

Card Type: Credit card

Rewards: 5% cash back on office supplies and mobile phone services. |  3% back on an expense category of your choosing. (5% and 3% up to the first $50,000 in purchases.)| 1% on all other purchases.

Employee Cards: Free

Buy Above Your Credit Limit: Make larger purchases and earn cash back on those purchases — even when the purchases exceed your credit limit.

Interest: 0% introductory APR for the 9 months. | After that your APR will be a variable rate, 13.99%, 18.99% or 20.99%, based on your business’ creditworthiness.

Annual Fee: None

Personal Guarantee: Required

Welcome Offer: None

Best For: Businesses who want a cash back card with high rewards and no annual fee.

Mastercard®

Bank of America® Business Advantage Cash Rewards

Card Type: Credit card

Rewards: 3% on purchases at gas stations and office supply stores. (Maximum $250,000 annually.) | 2% on purchases at restaurants. | 1% on all other purchases.

Employee Cards: Free

Interest: 0% intro APR for 9 months. | 12.99% to 22.99% variable APR thereafter.

Annual Fee: None

Personal Guarantee: Required

Welcome Offer: An additional 25% – 75% bonus on every purchase made when you join the proprietary rewards program. | $200 statement credit bonus after $500 in net purchases in the first 60 days when you apply online.

Bank of America® Business Advantage Travel Rewards

Card Type: Credit card

Rewards: 3 points per every travel dollar spent when you book through the Bank of America Travel Center. | 1.5 points for all other purchases.

Employee Cards: Free

Interest: 0% intro APR for 9 months. | 12.99% to 22.99% variable APR thereafter.

Annual Fee: None

Personal Guarantee: Not required

Welcome Offer: 25,000 bonus points after $1,000 in purchases in the first 60 days.

Best for: Businesses who want rewards points without an annual fee or personal guarantee requirement.

CitiBusiness® AAdvantage® Platinum Select®

Card Type: Credit card

Rewards:  Earn 2 miles for every $1 spent on American Airlines and for telecom, car rental and fuel purchases. Earn 1 mile for other purchases.

Employee Cards: Free

Interest: 17.49% – 25.49% APR based on your business’ financial history.

Annual Fee: $99 – Free for the first year.

Personal Guarantee: Sometimes

Welcome Offer:  Earn 70,000 miles with $4,000 in purchase in the first 4 months.

Best For: Businesses who regularly travel on American Airlines.

Bento for Business

Card Type: A pre-loaded credit card and expense management system hybrid.

Rewards: None

Employee Cards: Free

Credit Limit:  The primary account holder sets individual limits for each cardholder. They can also limit where each card is used.

Interest: None

Annual Fee: 60-day free trial. | Monthly fees ranging from free up to $149 depending on the number of cardholders.

Welcome Offer: None

Best for: Businesses that need to manage employee purchases.

Capital One® Secured

Card Type: Secured credit card

Rewards: None

Employee Cards: Free

Credit Limit: $200 initial credit line that you can increase after making your first 5 payments on time. | Requires a refundable deposit of $49, $99 or $200.

Interest: 24.99% variable APR.

Annual Fee: None

Personal Guarantee: Required

Welcome Offer: None

Best For: Building or rebuilding credit.

Wells Fargo Business Secured Credit Card

Card Type: Secured credit card

Rewards:  Your choice of cash back or reward point program. | Enrollment in either rewards programs is optional.

Employee Cards: $25

Credit Limit: $500 to $25,000 credit line based on the amount you deposit in your business banking account.

Interest: Prime + 11.90% on purchases. | Prime + 20.74% on cash advances. | Up to 21-day grace period.

Annual Fee: $25

Personal Guarantee: Required

Welcome Offer: Join the rewards program when you get your card and earn 1.5% cash back on qualified purchases for the life of the account.

Best For: Building or rebuilding credit.

Visa®

Capital One Spark Cash for Business

Card Type: Credit card

Rewards: Unlimited 2% cash back with no minimum to redeem.

Employee Cards: Free

Interest 18.74% variable APR

Annual Fee: $95 — Free for the first year.

Personal Guarantee: Required

Welcome Offer: $500 cash bonus with $4,500 on purchases in the first 3 months.

Best For: Businesses who simply want one flat rewards rate.

Capital One Spark Classic for Business

Card Type: Credit card

Rewards: Unlimited 1% cash back with no minimum to redeem.

Employee Cards: Free

Interest: 24.74% variable APR

Annual Fee: None  

Personal Guarantee: Required

Welcome Offer: None

Best For: Businesses that can’t qualify for the Spark One Cash card.

Chase Ink Business CashSM

Card Type: Credit card

Rewards: Earn 5% cash back at office supply stores and on internet, cable and phone services. | 2% cash back on spent at gas stations and restaurants. (5% and 2% up to the first $25,000 in purchases.) | 1% on all other purchases.

Employee Cards: Free

Interest:  0% intro APR for 12 months. | 14.99%–20.99% variable APR thereafter.

Annual Fee: None

Personal Guarantee: Required

Welcome Offer: $500 bonus cash back after you spend $3,000 in the first 3 months.

Best For: Flexible cash back rewards with no annual fee.

Chase Ink BusinessSM Preferred

Card Type: Credit card

Rewards: Earn 3 points per $1 on the first $150,000 spent on travel, shipping, internet, cable and phone services and advertising purchases made with social media sites and search engines.

Employee Cards: Free

Interest: 17.74% – 22.74% variable APR

Annual Fee: $95

Personal Guarantee: Required

Welcome Offer: Earn 80,000 bonus points after you spend $5,000 in the first 3 months. | Earn 20,000 bonus points when you refer another business owner who signs up for the same card.

Best for: Businesses that regularly travel to trade shows or advertise regularly.

Read More: 10 Best Businesses for Cash Flow

Checklist: Choosing the best business credit card for your business

You’ve just read our list of the best business credit cards in the United States, now comes the challenging part — picking the best one for your business. Use this checklist of things to consider and questions to ask to help narrow down the best options for your business.

The following sections after this checklist will also help you prepare for the application process and do the math as your final point of comparison. Then we wrap up by revealing our top picks.

Figure out if your business needs a charge card, credit card or secured credit card

While you know there are several main credit card brands, you probably didn’t know that there are three types of cards.

1. Charge cards: These cards have no pre-set limits, which can be helpful whenever you need to make large purchases. However, you must pay the balance each month in full. If there are times when you have to carry a balance, the interest and penalty rates are substantially higher than those for similar credit cards.

In our list of the best credit cards in the United States, two charge cards from American Express made the list — the Business Gold Rewards  Card and Business Platinum Card. For these cards, users can earn rewards points or travel miles at a higher rate than with other comparable credit cards. You also have to have a pretty solid credit history in order to qualify for these cards.

2. Credit cards: These are the traditional credit cards (revolving business credit cards) that you’re most familiar with. There’s a set limit you can spend each month and they’re more flexible in terms of carrying a balance. Because businesses are more likely to carry a balance with a credit card, the interest and penalty rates are lower than with charge cards.

If you like to earn rewards, you can choose from reward points, travel miles or cash back. Many of the best business credit cards in the United States also offer a 0% introductory APR. If you’re considering a business credit card, making a large purchase or changing cards, the 0% offers are pretty enticing. Just make sure you know what the interest and annual fees will be when these offers expire.

3. Secured business credit cards: Designed for newer business or business with lower credit ratings, secured cards offer a way to build or repair credit. If you can’t qualify for a traditional business credit card, a secured card can also be a first step to getting a standard business credit card.

With a secured card, you have a pre-set limit. In certain cases, you have to have the exact amount as the limit in your business checking or savings account. The issuing company will explain the requirements. Once you’ve established a record of on-time payments, you can increase your monthly limits and/or switch to a regular (unsecured) business credit card.

The interest rates depend on how the card is structured as well as your business’ credit history. In general, the rates are competitive with traditional business credit cards.

Know how your business credit card affects your credit history

Before you apply for a business credit card, even if it’s one of the best business credit cards in the United States, find out if your application will be reported on your business credit history. Some applications may also trigger a record on the owner’s personal credit history, so make sure you know ahead of time.

Certain credit card companies also report to the major business credit bureaus. Again, find out if they report both good and bad financial transactions – or only delinquent or late payments. This kind of information is invaluable for building and maintaining your business and personal credit histories.

This table from NerdWallet summarizes which banks report business credit card activity to the credit bureaus.

US credit cards that report to credit bureaus

Learn More: What’s a Business Credit Report?

Know what the interest rate for your business credit card will be

The interest rates for the best business credit cards in the United States definitely vary. It’s also important to note that unlike consumer credit cards, business credit card companies don’t have to notify customers about interest rate changes.

While a credit card company can’t raise the interest rate on a past-due amount until a period of 60 days has passed, business credit card companies aren’t held to this standard.

As you investigate business credit cards for your business, find out:

  • How long the introductory rates are valid.
  • Exactly which rate you qualify for and the reasons why.
  • The rates for late payments, cash advances and balance transfers.
  • If you’ll be notified in advance of upcoming increases.
  • If your payments will be applied to the balance with the highest interest first.

Understand how the annual fee works

With any of the top business credit cards in the United States, you’ll want to know how much the annual fee will be and if you’ll be notified of any increases. You should also ask if the annual fee is applied to employee cards too.

According to creditcards.com, the higher the fee, the greater the rewards. But, you also have to factor in the value of the rewards and if they matter to your business. Later in this article, we’ll be doing the math on business credit cards. This will show you how to compare rewards cards to cards with lower or no annual fees.

Note: Another consideration is that business credit card annual fees are also valid business tax deductions. When you’re making your decision, factor in the fact that you can deduct your annual fee at tax time.   

Determine if you’ll need employee cards

Need to offer a way for employees to manage expenses or purchase items as a routine part of doing business? Most business credit cards let business add employees to the main credit card amount. While many on our list of the best business credit cards in the United States, there’s at least one that charges an annual fee for each employee card.

Some business credit card companies also place a limit on the number of free employee cards they’ll issue. One more thing: Be sure to verify if the employee cards also include any fraud or purchase protection plans.

Establish if your business will benefit from a rewards program

Within our list of the best business credit cards in the United States, there are three main types of reward programs: points, air miles and cash back. Beyond this, the differences are in how the programs are applied.

Some have varying rates of returns based on specific spending categories. Other credit card companies give you more air miles when you use their travel services. (Meaning you should research their online travel services to see if they match your company needs before signing up for rewards.)

Again, it all comes back to doing the math and asking the right questions. How much do you have to spend to earn your rewards and what’s the value of the rewards over time? Plus, some rewards have limits and expiration dates too.

Tools, like ValuePengin’s rewards calculator, can also help you determine the long-term value of the rewards. According to their formula, using an average monthly spend of $1,430, the Chase Ink Business CashSM card had the highest two-year rewards value.

Know if there are places where your business credit card is accepted or not accepted

While American Express, Mastercard and Visa are widely accepted, there are instances where they aren’t. If your business makes regular purchases at certain retailers or wholesalers, make sure you know which types of credit cards these merchants accept. It’s one of those “know before you go” type things.

Ask if there’s a foreign transaction fee

If you travel or operate internationally, foreign transaction fees can add up. Read the fine print or as a service representative to verify if there’s a foreign transaction fee before you sign on the dotted line.

More Tips: 7 Ways to Boost Cash Flow

Understand if you’ll be dealing with the credit card company itself or the issuing bank

In the United States, Mastercard and Visa are only issued through banks. This means you’ll be establishing a relationship with the issuing bank, which may also have a service agreement with Visa or Mastercard to manage cardholder needs. With American Express, you work with American Express. It’s mostly just how they’ve set up their business models. As long as you feel that you’ll get the service and support you need, that’s all you need to know.

Applying for a business credit card

Applying for a credit card is a business transaction and you’ll want to have all the required information, whether you apply online, over the phone or in person at the bank. Here’s what you’ll need to apply for any of the best business credit cards in the United States:

  • Employer Identification Number (EIN) — If your business is incorporated, then you would have received this number when you registered your business with the Internal Revenue Service (IRS). If you’re a sole proprietor, your Social Security Number is also your EIN.
  • Business name and address — When you provide these items, make sure they match the information on your tax records. Otherwise, the issuing company may have a harder time verifying your business details.
  • Business financial information — This includes your business banking accounts and may include your previous tax filings to help substantiate your income and overall financial health.
  • Personal financial information — If you own more than 25% of the business, you will need to provide your legal name, date of birth, SSN, home address and percentage of ownership.
  • Your business plans, books and budget — While each of these items informs each other, they also help creditors evaluate the overall strength of your business. Having your books in order and providing copies of your recent financial statements can go a long way in showing that your business is creditworthy.

Before you apply: Verify if you’ll have to provide a personal guarantee

A personal guarantee is pretty much what it sounds like. It’s a promise that the business owner or applicant will be personally responsible if the business fails to pay its debts. It doesn’t matter if you’re incorporated or not. The laws are on the side of the card issuers on this one. This is why you need to find out if you have to provide a personal guarantee as part of the application process.

If you already have a business relationship with the issuing bank along, along with a record of on-time payments and low debt-to-equity ratio, you might be able to negotiate the waiving of the personal guarantee. If not right from the start, you can also try again after a few months of paying your credit card on time.

In general, find out if a guarantee is required and if there are any criteria for exclusion that your business can meet. Also know that there are cards on our list of the best business credit cards in the United States, like the Bank of America® Business Advantage Travel Rewards card that don’t require a personal guarantee.

Best Practices: Separating Business and Personal Finances 

Calculating the costs and rewards of business credit cards 

Brace yourself, this is the math part. If you’re not a math person, you will be when you see how important determining costs and comparing rewards is in choosing the best business credit cards in the United States.

Start by estimating your average owing balance each month. For these examples, we’ll use $4,000. Keep in mind that these examples assume you’re not using your business credit card again until the owing balance is paid.

Example # 1 — Comparing annual fees and interest rates (excluding rewards and intro offers)

In this example, we’re looking at interest rates and annual fees only. We’re leaving out any introductory 0% APR and waiving of the annual fee offers.

Card # 1 — CitiBusiness® AAdvantage® Platinum Select®
$4,000 x 17.49% (the lowest variable rate) = $699.60 in interest charges.
$699.60 + $99 annual fee = $798.60 total cost to carry a balance

Card # 2 — Capital One Spark Cash for Business
$4,000 x 18.74% (the lowest variable rate) = $749.60
$749.60 + $95 annual fee = $848.60 total cost to carry a balance

The 1.25% difference in interest had a lot more impact than the $5 separating the annual fees. With close to half of the cards on our list setting interest rates based on financial health, you can clearly see how solid financial health helps out.

Example # 2 — Comparing the value of rewards and intro offers

In order to compare “apples” to “apples” — we’re going to compare two cash back cards. We also factor in the intro offers to show the costs the once the offers expire.

Card # 1 — Capital One Spark Cash for Business

In the first year, with the intro offers:
$4,000 X 18.74% = $749.60
$749.60 + $0 annual fee = $749.00
$4,000 X 2% cash back = $80 + $500 cash bonus = $580
$740.00 – $580 = $169 total cost when you carry a balance in the first year.

Following years:
$4,000 X 18.74% = $749.60
$749.60 + $95 annual fee = $848.60
$4,000 X 2% cash back = $80
$846.60 – $80 = $766 total cost when you carry a balance thereafter.

Card # 2 — Capital One Spark Classic for Business

Every year (This card has no annual fee or intro offers):
$4,000 X 24.74% = $989.60
$989.60 + $0 annual fee = $989.6
$4,000 X 1% cash back = $40
$986.60 – $40 = $949.60 total cost when you carry a balance.

The lower interest rate and higher cash back percentage of the Spark Cash for Business card offset the costs of the annual fee. When you compare the difference in cost between the first year and the following year without the offers, brace yourself for a little sticker shock.

Our choice for the best business credit card in the United States

Our top choice is the American Express SimplyCash® Plus card. Now that the suspense is over, we’ll explain our criteria. First, in terms of rewards, cash is the most tangible. You don’t have to convert it to anything, you just use it. This is why compared all the cash back cards on our list of the best business credit cards in the United States to determine the best value.

  • Cash back: We overlooked any first-year offers, like 0% APR for 9 to 12 months or no annual fee. Then we just ran the numbers. As the cash back rewards for the SimplyCash® Plus card were tiered, we broke the reward amounts on our $4,000 monthly spend number down this way: $2,000 x 5% + 2,000 x 3% + $1,000 x 1% = $100 + $60 + $10 = $170 cash back per month. (Assuming that you’re going to spend more on the categories where you earn the most.)
  • Cost of carrying a balance: We then calculated, that if you carried this $4,000 balance over for one billing cycle at 20.99% (the highest APR), you’d pay $839.60 in interest. Subtracting the cash rewards of $170, you end up with a cost of $669.60 to carry a balance. This was the lowest cost of all the cash back cards. Plus, there’s no annual fee for the lifetime of the card.
  • Introductory offers: If you take advantage of the introductory offers, you really do well with no interest for the first nine months. Meaning for nine months, all you do is accrue cash rewards. This card also has the highest maximum, $50,000 each year for the 5% and 3% categories.
  • Flexible spending: With this card, you can “buy above your limit” when making large purchases. There are no overlimit fees and you simply need to pay the overage amount in full when payment is due.
  • Flies in the ointment: The main drawback is that the categories are set to narrow parameters that suit a white-collar professional business more so than a manufacturer, contractor or retailer. The highest level of cash back is at office supply stores and US-based mobile phone providers. The second highest level also favors travel and tech over raw materials. If you travel or do business internationally, this card also has a foreign transaction fee.

Our second and third runners-up for the best business credit cards in the United States

At $689 to carry a balance, the Chase Ink Business CashSM card comes a close second to the American Express SimplyCash® Plus card. Its cash back rewards are structured similarly to the top card, but its second tier of rewards is only 2% cash back at gas stations and restaurants and both tiers have a $25,000 annual limit.

With its flat 2% cash back on all qualified purchases, the Capital One Spark Cash for Business card the top contender for businesses who don’t want to fuss with categories. Granted the cash back when you spend $4,000 is a mere $80. When you add interest and the annual fee, the total cost to carry a balance is $766. In the first year, waiving of the annual fee and the $500 cash bonus when you spend $4,500 in the first three months brings the cost to carry a balance down to $169.

Closing thoughts: Know all the tools available for accessing funds and managing cash flow

A business credit card, even if it’s one of the best business credit cards in the United States, is a financial tool. But, it’s not the only tool at your disposal to help you manage your cash flow.

Start by analyzing and forecasting your cash flow to get a clearer picture of how money moves through your business on a regular basis. The more you track and monitor your financials, the more aware you’ll be of the patterns and which variables have the greatest impact.

You should also be aware of the range of traditional and non-traditional short-term financing options available to businesses. Know all the tools in your toolbox from term loans and lines of credit to invoice factoring and financing. There’s always a cost for borrowing money, the key is knowing which costs make the most sense for your business and the specific instance in which you need funding.

Finally, pay attention to how other businesses and financial service providers view your business in terms of risk. Monitor your credit scores and use our proprietary risk score to assess your standing.

QuickBooks online users can get started right now.
(Other integrations are coming soon.)

This information does not replace the expertise that comes from working with an accountant, bookkeeper or financial professional. It is also not an advertisement or endorsement for any of the banks or credit cards name. The credit card details are valid as of the publishing of this post.

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Best Business Credit Cards in Canada [Checklist Included]

Best Business Credit Cards in Canada

This article details the best business credit cards in Canada. To see the best business credit cards in the United States, click here.

Looking for a credit card for your business? The research process for finding the best business credit cards in Canada can be a bit like one of those logic problems where the farmer plants a tree in a field, but you have to figure out how many apples are in the barn and which farmer owns a cow. (Don’t panic, we’re here to help. And we promise: There’s no quiz at the end.)

With higher limits than personal credit cards, business credit cards help small and medium-sized enterprises (SMEs) free up cash flow by delaying payment on day-to-day expenses until a set point each month. For the average business trying to make ends meet on operational cash flow alone, this is a fairly significant benefit.

Business credit cards also help build a business credit history and they streamline expense tracking. Depending on your business, the rewards programs can also provide added perks. But, how do you know which credit card is the right one for your business?

What are the best business credit cards in Canada?

At PayPie, we wanted to know, too. So, we started by visiting the three review pages that topped our search results for the best business credit cards in Canada:

We also asked our CEO, Nick Chandi for his thoughts on choosing the best business credit card. He said:

“Best is subjective. There’s no single make or break variable. Some business owners may want travel rewards. Others, like myself, prefer cash back. It’s a matter of what’s best for each business.”

(We knew you’d pick the money, Nick.)

Read more: The 10 best businesses for cash flow. 

The top three business credit card brands in Canada

After comparing the tables from each of the sites above, we found that brand-wise, the top three business credit card in Canada are American Express®, Mastercard® and Visa®. In most cases, American Express offers its cards directly, while Mastercard and Visa are available through several Canadian banks.

How do the best business credit cards in Canada compare against each other?

The best ways to show a comparison is to create a table, which is exactly what we did. We took the best business credit cards in Canada from each of the top comparison sites and compiled them into this table.

Table: The best business credit cards in Canada

Our table comparing the best business credit cards in Canada is organized alphabetically by brand. It includes links to each brand’s or issuer’s main website as well as links to details for each individual card.

There’s a lot to compare and consider when choosing a credit card for your business. This is why we’ve also created a checklist with questions to ask and variables to consider. You’ll find it right below the table.

American Express®

Business Gold Reward Card

Card Type: Charge card (Balance must be paid in full each month.)

Rewards: 1 point for every $1 in purchases and 1 extra point for every $1 in eligible purchases from your choice of 3 participating vendors.

Employee Cards: $50 each

Interest: 30% annual interest rate for balances not paid in full.

Annual Fee: $250

Welcome Offer: 30,000 points with $5,000 in purchases in the first 3 months.

Business Platinum Card

Card Type: Charge card (Balance must be paid in full each month.)

Rewards: 1.25 points for every $1 in purchases.

Employee Cards: $199 each

Interest: 30% annual interest rate for balances not paid in full. | 55-day grace period.

Annual Fee: $499

Welcome Offer: 40,000 points with $5,000 in purchases in the first 3 months.

AIR MILES® for Business

Card Type: Charge card (Balance must be paid in full each month.)

Rewards: Earn 1 mile for every $10 in purchases from participating vendors and 1 mile for every $15 in other purchases.

Employee Cards: $50 each

Interest: 30% annual interest rate for balances not paid in full.

Annual Fee: $180

Welcome Offer: 2,000 miles with $5,000 in purchases in the first 3 months.

AIR MILES® Gold

Card Type: Credit card

Rewards: 1 mile for every $15 in purchases from participating vendors and 1 mile for every $20 in other purchases.

Employee Cards: Free (Misuse protection not included.)

Interest: Purchases 19.99% | Advances 22.99% | Missed payments 23.99% and/or 26.99%.

Annual Fee: None

Welcome Offer: 150 miles with $1,000 in purchases in the first 3 months.

Mastercard®

BMO®

Rewards® Business Mastercard®

Card Type: Credit Card

Rewards: 3 points for every $1 you spend on gas, office supplies and cell phone/internet bill payments. Earn 1.5 points for other expenses.

Employee Cards: Free

Interest: Purchases 14.99% | Cash advances 22.99% | 25-day grace period.

Annual Fee: $120

Welcome Offer: 35,000 points after you spend $5,000 in the first 3 months. Plus, no annual fee for 1 year.

AIR MILES® Business Mastercard®

Card Type: Credit Card

Rewards: 1 mile for every $10 in purchases and 1.5 miles for every $1 spent at Shell®.

Employee Cards: Free

Interest: Purchases 19.99% | Cash advances 22.99% | 25-day grace period.

Annual Fee: $120

Welcome Offer: Up to 3,000 miles after you spend $5,000 in the first 3 months. Plus, no annual fee for 1 year.

CashBack® Business Mastercard®

Card Type: Credit Card

Rewards: 1.5% cash back on eligible gas stations, office supplies purchases and on your cell phone and internet recurring payments. | 1.75% cash back at Shell®. | .75% cash back on other purchases.

Employee Cards: Free

Interest: Purchases 19.99% | Cash advances 22.99%. | 25-day grace period.

Annual Fee: None

Welcome Offer: 6% cash back on gas, office supplies and cell phone/internet bills for 4 months.

AIR MILES® No-Fee Business Mastercard®

Card Type: Credit Card

Rewards: 1 mile for every $20 in purchases and 1.25 miles for every $1 spent at Shell®.

Employee Cards: Free

Interest: Purchases 19.99% | Cash advances 22.99% | 25-day grace period.

Annual Fee: None

Welcome Offer: 500 bonus miles after the first purchase.

RBC

Business Cash Back Mastercard®

Card Type: Credit Card

Rewards: 1% cash back on eligible purchases. | Save 3¢/L on fuel and earn 20% more Petro-Points at Petro-Canada locations.

Employee Cards: Free

Interest: Purchases 19.99%

Annual Fee: None

Welcome Bonus: 2% cash back on eligible purchases for the first 3 months.

Visa®

CIBC

bizline® VISA® Card

Card Type: Credit Card

Rewards: None | Selling Point: Up to $50,000 credit limit.

Employee Cards: Free

Interest: Between CIBC Prime Rate +1.5% and Prime Rate +13%.

Annual Fee: None

Welcome Offer: None

RBC

VISA® Business Card

Card Type: Credit Card

Rewards: None | Save 3¢/L on fuel and earn 20% more Petro-Points at Petro-Canada locations.

Employee Cards: $12

Interest Rate: Purchases 19.99%

Annual Fee: $12

Welcome Offer: None

Scotiabank

VISA® Business Card

Card Type: Credit Card

Rewards: 1% cash back on all eligible purchases.

Employee Cards: Free

Interest: Purchases 22.99% | Cash advances 22.99%

Annual Fee: Silver card $75 | Gold card $105

Welcome Offer: None

Read More: What’s a Business Credit Report?

Choosing the best business credit card

When you visit the comparison sites and the credit card sites themselves, you’ll find that you get bits and pieces of information on the best business credit cards in Canada.

Once you identify your best choices, contact the credit card company and get answers to all your questions. Make sure you know exactly what you’re committing to and if it’s the right fit for your business.

Getting your questions answered will also give you a chance to experience the provider’s level of customer service. And — as a final step — don’t forget to do the math.

While we’ve found some of the best business credit cards in Canada, what really matters is finding the one that’s best for your business.

Checklist: Choosing a business credit card in Canada

According to the Forbes Coaches Council, asking questions represents a growth mindset. And, seriously, how else are you going ensure you understand exactly how your business credit card works? As promised, here’s our checklist:

Read More: A real-life cash flow case study.

Do you need a business charge card or credit card?

While a charge card has no pre-set limit, it won’t let you carry a balance from one month to the next and the interest for unpaid balances is high.  Purchases are reviewed based on your spending and payment patterns. (It’s not a blank cheque.)

A credit card has a set limit, but it also gives you the flexibility to carry a balance when needed. However, you’ll pay interest on the outstanding amount.

Note: If you already know that you’re likely to carry a balance, consider the interest rate you’ll be paying. This might either lower or outweigh the value of the rewards.

Will you need employee cards?

All of the cards listed offer employee cards. The difference is whether or not there’s a fee for each card. Another question to ask is if the employee cards include misuse protection.

The information for the American Express® AIR MILES® Gold Card made specific note of this exclusion. There’s always a reason for this kind of thing. It doesn’t hurt to ask why.

Do you want a rewards program?

Air miles, cash back and reward points are the main choices available. If you don’t want a reward program at all, the CIBC Bizline® VISA® is your card.

It’s hard to beat cash as a reward. Just make sure you understand how the program works and if there are annual maximums for your main and employee accounts.

If travel is a regular requirement, air miles might be a good fit. Some providers will let you roll over your miles into other travel programs, so check if this is a possibility.

If simple reward points are your gig, make sure you know when and where you can redeem them If you have company vehicles, a few of the MasterCard® options had alliances with specific gas stations.

If you’re considering a cash back program, find out if you have to use a specific gas station or if any gas purchase qualifies as a business purchase.

Is there an annual fee?

Each of the top three brands of the best business credit cards in Canada has cards with and without annual fees. Find out if these fees ever increase and, if so, has this happened recently in the pasts few years?

Both BMO® Rewards® and AIR MILES® Business Mastercards® wave the annual fee for the first year through introductory offers.

Among the cards listed, there’s no clear correlation between the annual fee and the interest rate or reward program

One thing to consider — in most instances, your annual credit card fee can be claimed as a business tax deduction. Interest fees can be claimed as well, but why pay extra when you don’t need to? It’s a cost-benefit sort of thing.

What’s the interest rate?

Make sure you know and understand what interest rate you’ll pay. Verify if there are different rates for specific activities, like cash advances or late payments.

If you’re given an introductory rate, find out how long this rate will be valid and when it’ll change. Ask how often the rates change and how you’ll be notified of rate increases.

Where is your business credit card accepted or not accepted?

One of the main benefits of having a business credit card is so that you can charge all of your expenses to the same account. If your business makes regular purchases from retailers or wholesalers, make sure the brand of business card you choose is accepted at those establishments.

What information do you need to apply?

According to Ratehub, you’ll need to provide proof that your business is valid business through documents including your articles of incorporation, business license, tax assessments or financial statements.

How long is the application process?

If you’re applying for your business credit card in anticipation of making a large purchase or using it to boost cash flow, you need to know the timeline. All the business credit card sites promote a quick approval process. But, as you know all too well, there’s never a one-size-fits-all solution.

Read More: Separating Business and Personal Finances.

The final step: Doing the math

You asked your questions, you’ve got all the variables. Now you need to do the math to determine which of the best business credit cards in Canada is best for you. This example from the Financial Consumer Agency of Canada (FCAC) shows you how it’s done. (Note: It also assumes you don’t use your card again until the balance is paid.)

Step 1 — Calculate your average owing balance or for simplicity, pick a rounded number and estimate. For this example, we’ll use $4,000.

Step 2 — Take your top credit card choices and run the numbers.

Example # 1 — Comparing business credit cards based on interest rates

In this example, we’ll pick two basic credit cards with no rewards programs. All we’ll look at is interest. While one card has a fee and the other doesn’t, the difference in interest rates is enough to offset any discussion of an annual fee.

Card # 1 — CIBC bizline® VISA® Card — no annual fee or rewards

$4,000 X 14.99% = $599.60 in interest

(At the time of publishing this article, the CIBC prime rate is 3.7%. If you add 13%, you get 16.7%. As that’s a worst-case scenario, we picked the lowest interest rate on our table 14.99% for estimation.)

Card # 2 — RBC VISA® Business Card — $12 annual fee, no rewards

$4,000 X 19.99% = $799.60 in interest, even without the fee.

$799.60 + $12 = $811.60 with the fee.

The winner — CIBC bizline® VISA® Card based on interest rates alone.

Example #2— Factoring in rewards, annual fees and welcome offers  

In this example, we’ve picked two BMO® Mastercards® — each with the same interest rate. Because of this, the value of the rewards programs and the annual fee will be the determining factors. Additionally, both cards have welcome offers, which are also taken into consideration.

Card # 1 — BMO® AIR MILES® Business Mastercard® — $120 annual fee | rewards miles program

$4,000 X 19.99% = $799.60 in interest

Miles = 1 for every $10

Using their calculator, if you spent $4,000 each month, in a year you’d earn 7,800 points. This is enough for a trip from Yellowknife to Maui or a high-end coffee maker. (With the welcome offer, you get $3,000 miles, so maybe you can get a milk frother to go with the coffee maker or fly from Vancouver to Maui.)

During the first year with no annual fee: $799.60 in interest

After the first year with an annual fee: $799.60 + $120 annual fee = $919.60 in interest and fees

Card # 2 — BMO® CashBack® Business Mastercard® — No annual fee | cash back program

$4,000 X 19.99% = $799.60 in interest

Cash back = 1.5% on eligible purchases (6.0% for the first 4 months), 1.75% at Shell® and .75% on other purchases

($3,000 X 6.0%) + ($500 X 1.75%) + ($500 X .75%) = $180 + $8.75 + $3.75 = $57.50 cash back

(After the 6.0% intro offer expires, the rate resets to 1.5%, which equals $45 when you have $3,000 in eligible purchases.)

During the welcome offer: $799.60 – $192.50 = $607.10

After the welcome offer expires: $799.60 – $55.50 = $744.10

The winner — BMO® CashBack® Business Mastercard® hands down — even when the annual fee is waived for a year on the other card.

(Now we really know where Nick was coming from in choosing cash back.)

Our Pick: The Best Business Credit Card in Canada

Our verdict is [insert drumroll]… the BMO® CashBack Business Mastercard®. Of all the reward formats, cash is the most universal. After all, a dollar equals a dollar. Point-based rewards have to be redeemed at specific locations and saving up miles is its own ball of wax.

Of the three cash back cards on our list, this one beat out the others because it had the highest rate of return — 1.5% on eligible purchases. It had the best welcome offer along with no annual fee (ever) and it’s the only cash back card with a 25-day grace period (perfect for those months when your cash flow doesn’t flow quite as expected).

Purchases and expenses are only part of your cash flow story

While a business credit card is a tool that can help you control how you track purchases and when you pay for expenses, it’s really just one piece in the puzzle.

A credit card statement only tells you what you’ve spent, it doesn’t give you any information on when you’ve been paid. A cash flow forecast puts all the pieces together by looking at all the aspects of your business that affect the money flowing in and out of your business.

Businesses live and die by cash flow. This is why PayPie is dedicated to creating tools that help businesses take charge of their cash flow and focus on growth and financial health.

Are you a QuickBooks Online user? Get started managing your cash flow today.

This information does not replace the expertise that comes from working with an accountant, bookkeeper or financial professional. It is also not an advertisement or endorsement for any of the banks or credit cards name. The credit card details are valid as of the publishing of this post.

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