5 Best Business Credit Cards For Startups In Canada (Feb 2023)

December 21, 2022
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Business credit cards for startups are exceptional options to help new business owners earn and organize business transactions. These credit cards come with special business tools and discounts on business-related purchases, and can be used to establish a solid credit score for your business early on so you can be eligible for higher credit limits.

The Scotia Momentum For Business Visa Credit Card is my pick for the best all-around business credit card for startups in Canada, both for its purchase protection and best-in-class perks on business purchases. Some of the perks include a 3% cash back rate, a 25-day interest-free grace period, and comprehensive insurance.

The Best Business Credit Cards For Startups In Canada

  1. Scotia Momentum For Business Visa Credit Card – Best Overall
  2. Marriott Bonvoy Business American Express Card – Best For Travel
  3. BMO World Elite Business Mastercard – Best For Insurance Coverage
  4. BMO CashBack Business Mastercard – Best For No Annual Fees
  5. American Express Aeroplan Reserve – Best For Earning Perks

What Is The Best Business Credit Card For Startups in Canada?

1. Scotia Momentum For Business Visa Credit Card – Best For Cash Back

The Scotia Momentum for Business Visa Card is the best credit cards for business startups in Canada. It comes with excellent cash back benefits – up to 3% on eligible purchase – and for large purchases you can enjoy a 25-day interest-free grace period. 

The Scotia Momentum For Business Visa Card carries many complimentary services, such as car rental insurance, purchase protection, and more. Business owners can also take advantage of unique features for a business, like cash flow, business expenses tracking and organization, and discounts from business purchases.  

The Scotia Momentum For Business Visa Card provides an introductory interest rate of only 2.99% in the first six months of membership. 

Features

  • $79 annual fee
  • Get up to 3% cashback from eligible purchases 
  • Access to business tools such as tracking and organization of business expenses, cash flow, and savings
  • Car rental insurance coverage and Travel Emergency Medical Insurance coverage
  • Purchase security and Extended Warranty Protection
  • Convenient and fast payment by tapping your card to pay 

Pros

  • Comprehensive insurance for auto rental, travel emergency and purchase
  • Low introductory interest rate on balance transfers in the first six months of membership
  • Low annual fee than other credit cards
  • Access to business tools 
  • Tap your card for past payment
  • Option Scotia Business Loan Protection 

Cons

  • Fewer features and perks compared to other credit cards
  • It has an annual fee of $79

Pricing

  • $70 annual fee
  • 19.99% purchase interest
  • 22.99% interest for cash advances, balance transfers, and Scotia Credit Card Cheques

Best For

Best for startup business owners who want to earn cashback from their purchases

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2. Marriott Bonvoy Business American Express Card – Best For Travel

The Marriot Bonvoy American Express Card is a great companion if you're a new business owner and frequent traveler. It offers high rewards points when you use them for the eligible hotels of Marriott Bonvoy. You can also get points from all of your other purchases. 

One of the best features of the Marriot Bonvoy American Express Card is its complimentary Gold Elite Status to the Marriott Bonvoy. It provides outstanding offers and services to the properties participating in it. Meanwhile, cardholders are entitled to a one-free night award in the eligible hotels when they renew their card monthly. 

You can get hotel room discounts, generous welcome bonuses, credits, and more when you have a Marriott Bonvoy American Express Card.

Features

  • $125 annual fee
  • Earn up to 6x points at eligible hotels of Marriott Bonvoy
  • Earn up to 75,000 welcome rewards bonus points in the first three months
  • Complimentary Gold Elite Status of your card 
  • Get a free night at eligible hotels in every monthly card renewal
  • Get up to 7% Marriot Bonvoy Room Rate Discounts
  • Access to Elite Night Credits with exclusive benefits

Pros

  • No foreign transaction fees
  • Complimentary free nights at eligible hotels of Marriott Bonvoy
  • Gold Elite Status to Marriott Bonvoy with excellent benefits
  • Generous welcome bonus points
  • Earn up to 6x points at participating hotels
  • Get up to 7% hotel room discount
  • Access to Amex Offers programs
  • Complimentary Purchase Protection and Extended Warranty Protection

Cons

  • No insurance coverage for travel and business
  • A high earn rate is only available to Marriott Hotels
  • It has an annual fee of $125

Pricing

  • $125 annual fee
  • 19.99% – 28.49% purchase interest
  • 3% or 5% cash advances interest
  • $0 foreign transaction fee

Best For

Best for new business owners who are frequent travelers and avid customers of Marriott Bonvoy.

3. BMO World Elite Business Mastercard – Best For Insurance Coverage

The BMO World Elite Business Mastercard is an excellent business credit card for startups as it carries comprehensive insurance coverage. Not all credit cards for new business offer this privilege. This card is for business owners who prefer outstanding protection from travel, purchase, and auto rental.

Like the BMO CashBack Business Mastercard, you can get a hefty amount of additional cards for your employees. It earns rewards points which you can maximize with the additional cards to get rewards such as travel from Toronto to Halifax, office supplies, employee gifts, and more. Cardholders are also entitled to Mastercard Travel Pass for complimentary airport lounge passes.

Features

  • $149 annual fee 
  • Get up to 4 points for $1 spent on eligible purchases
  • Get up to 22 additional cards
  • Access to Liability Waiver Program to protect you against employee card abuse and misuse
  • You can redeem rewards points for travel, gifts, office supplies, and more
  • Get a 1% to 25% rebate when shopping at participating merchants
  • Comprehensive insurance protection for travel, purchase, and auto rental

Pros

  • Comprehensive insurance protection for travel, purchase, and auto rental
  • Great earning rate for eligible purchases
  • Waived annual fee on the first year of membership
  • Automatic rebates when shopping at eligible merchants
  • Complimentary membership to Mastercard Travel Pass by DragonPass
  • Get a Liability Waiver Program to prevent employee card abuse and misuse

Cons

  • Fewer features than other credit cards
  • It has an annual fee of $149

Pricing

  • $149 annual fee (free annual fee on the first year of membership)
  • 17.99% purchase interest
  • 22.99% cash advances interest

Best For

Best for startup businesses that need comprehensive insurance coverage. 

4. BMO CashBack Business Mastercard – Best For No Annual Fees

The BMO CashBack Business Mastercard is the best pick for no-fee cards for new businesses. It offers a generous welcome bonus of up to 10% cashback from qualifying purchases in the first three months of membership. Other than this, cardholders access features such as additional cards and rebates from participating stores.

Meanwhile, Mastercard Global Services provides emergency services to cardholders, including cash advances and card replacements. Similar to other cards, it carries purchase protection and extended warranty protection coverages. Small business owners are also entitled to the Liability Waiver Program to prevent card misuse or abuse among their employees. 

BMO guarantees cardholders of zero liabilities from unauthorized purchases using their cards. 

Features

  • $0 annual fee
  • 10% cashback in three months of membership for new cardholders (current offer)
  • Up to 22 additional cards are offered.
  • 1% to 25% rebates for shopping at participating stores using the Mastercard Easy Savings
  • BMO credit cards are widely accepted
  • Access to Mastercard Global Services offers emergency services such as card replacement, 24/7 customer services, and more.
  • Cardholders are entitled to Purchase Protection and Extended Warranty Protection coverage.

Pros 

  • No annual fee
  • High rebates when shopping at participating merchants
  • Complimentary Purchase Protection and Extended Warranty Protection
  • Complimentary Liability Waiver Program for protection against employee card abuse or misuse
  • Get Zero Liability Protection to prevent any charges if an unauthorized transaction is held using your account.
  • Generous welcome bonus and up to 1.75% cashback after
  • Earn cashback without fees

Cons

  • No insurance coverage for business and travel
  • Fewer features than other business credit cards

Pricing

  • $0 annual fee
  • 19.99% purchase interest
  • 22.99% cash advances interest

Best For

Best for small businesses with low income or startup capital.

5. American Express Aeroplan Reserve – Best For Earning Perks

The American Express Aeroplan Reserve provides various perks and benefits to its cardholders, especially frequent flyers. It’s a promising startup credit card for business owners with high incomes. It may have a high annual fee, but rest assured, it gives back exclusive features you can’t get from other credit cards.

You are most likely offered benefits from Air Canada since American Express Aeroplan Reserve Card is for the Aeroplan program. It earns points you can redeem to book flights, pay for hotels, redeem gift cards, and more. Aside from these, you are also entitled to comprehensive insurance coverage and airport priority access.

Features

  • $599 annual fee
  • Up to 3x Aeroplan points from eligible purchases
  • You can redeem Aeroplan points for several reward options.
  • Get exclusive benefits at Toronto Pearson International.
  • $100 NEXUS card statement credit of up to $100
  • Access to worldwide airport lounges
  • Complimentary insurance coverages
  • Priority Access to airport services, standby, and upgrades

Pros

  • Comprehensive insurance coverage for purchase, travel, and rentals
  • Exclusive access to American Express programs
  • Get statement credits and access to priority security airports, lanes, and more.
  • Earn cashback from an eligible purchase
  • Complimentary Maple Leaf Lounge Access
  • Access to Priority Airport services, standby, and upgrades
  • Generous welcome bonus

Cons

  • High annual fee
  • A high earning rate is only suitable for frequent flyers of Air Canada.

Pricing

  • $599 annual fee 
  • $199 additional Aeroplan Reserve Card
  • $0 for additional Aeroplan Reserve no-fee card
  • 20.99% annual purchase interest
  • 21.99% annual funds advance interest

Best For

Best for business owners who are frequent flyers that want to earn more perks. 

What Are The Best Business Credit Cards For Startups?

Business credit cards for startups are credit cards used by new business owners. Like other credit cards, it typically offers benefits, perks, rewards, and cashback from purchases. For new business owners, it’s also a great way to establish credit scores and history. 

When you use a credit card, you charge the purchases to the card, and you will pay the total charges during the billing period. The credit card issuer usually gives a statement that provides all of the purchases you made in a month using the card. You are also given an interest-free grace period to pay for the balance.

Meanwhile, credit card issuers provide minimum payment requirements to cardholders. This way, they can keep their credit scores unaffected even if they can’t pay the statement in full. Interest rates are also applied to balances being carried out to the next billing cycle. 

A credit card for startup businesses carries unique and special business tools to consolidate and track your transactions. It helps you also separate your expenses from your company. Most cardholders often offer optional loans to assist the business from total losses during certain circumstances. 

Benefits Of Business Credit Cards For Startups

  • Special Business Tools: Most business credit cards for startups provide business tools to monitor and organize expenses. It is a huge help to consolidate the transactions. 
  • Helps Increase Credit Score And History: Using credit cards enables you to increase your credit score. Over time, you can be eligible for various credit cards with high credit limits. 
  • Perks And Benefits: Business credit cards for startups provide various perks and benefits to cardholders. These include discounts, exclusive access to programs, and more.
  • Cashback And Rewards Programs: You can get cashback and rewards from your eligible purchases. The more purchases you make, the higher the earnings you can get. 

Best Business Credit Cards For Startups FAQs

How much do business credit cards for startups cost?

A business credit card for startups costs $0 and up. The annual fee depends on the card issuer; in some cases, it may cost expensively based on the credit assessment. 

What is the cheapest business credit card for startups?

The cheapest business credit card for startups is the BMO CashBack Business Mastercard. It has no annual fee.

What is the best free business credit card for startups?

The best business credit card for startups is the Scotia Momentum for Business Visa Card. It carries comprehensive insurance coverages and earns cashback from eligible purchases.

Is a business credit card for startups worth it?

Yes, a business credit card for startups is worth it. Business credit cards for startups allow new business owners to consolidate their expenses from their business. It also provides various benefits and perks. 

Are business credit cards for startups safe?

Yes, a business credit card for startups is safe to use. Credit card issuers provide a Liability Waiver Program preventing employees from card abuse and misuse. Most issuers also guarantee Zero Liability protection against unauthorized transactions and fraudulent activities. 

Are business credit cards for startups legit?

Yes, business credit cards for startups are legit. New business owners often acquire this card to help them earn and consolidate their business transactions. 

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