Small Business Credit Cards...any suggestions?

[Aquanaut]

Hi there,

I'm considering to apply for a business credit card. I'm thinking of applying for an RBC Visa card, and I wanted to see if you have any comments/suggestions about RBC cards or any other bank's cards. I'm mostly interested in a card with no annual fees.

Thanks,

Aquanaut

[jckc]

No suggestion...

When I looked around for a business credit card a year ago, I couldn't find anything 'free'. Business card also do not come with any (or only very little) 'points'.

I now use one of my personl credit cards for all my business use. When the bill comes, I reimburse myself using company cheque.

I'm curious to know what option is available now.

[Canucklehead]

I use my personal card. When I worked for a company, we still used personal cards to get the points (taxable benefit but better than nothing).

I've seen the following corporate cards: Amex, Diners Club and Visa. I'm sure MasterCard has one as well. I think the benefits are that they break out the various expenses by category.

[Sanhedralite]

all I can say is not CIBC for business. In every workplace the finance dept has had bad experiences with that bank.

[Aquanaut]

Thanks for the comments,

I finally applied for RBC basic Business Visa. Annual fee is $12, and there are no points, but given my level of expenditure this seemed to be an okay choice. I also checked VISA's own website for a basic comparison:

http://www.visa.ca/smallbusiness/get_card.cfm

[DBM]

Hi, I do seasonal work, and will probably be putting $15-20k on the card over the season- what would you guys suggest as a credit card? My business account is with RBC.

[ieatkittens]

Is there a disadvantage to using a personal card and reimbursing with a company cheque?

[deep]

Personally, I found the SB CCs to be a rip off - it seems the offers available to individuals are far better these days. So I have a LOC card from Scotia (you need to speak with a rep, as the interest rate is negotiable! Read the terms and you'll see what the possibilities are at any given moment....if you just apply online or via mail, you'll get the worst terms possible)

I also have a Capital One Platinum Mastercard now, on the recommendation of another RFDer, as it is also no fee, but has travel/insurance benefits for purchases, as well as a very good rate.

[Surf4Deals]

I believe CIBC's Bizline is free (no annual fee). RBC has a great Platinum card with a high limit if you plan on putting a lot on the card. However, the annual fee is around $120. Other than points for various products you can redeem your points as RRSP.

You should note that the terms for business Visas are somewhat different than personal. That is, your don't get the same grace period.

The major advantage I find is that business Visa cards enable you to manage your expenses more easily. Some cards actually provide detailed billing which categorizes your purchases (e.g. Meals/Entertainment, Fuel, etc.). At the end of the year, it just makes your paperwork so much easier. You don't have to wade through a million receipts =)

[tkyoshi]

Mosaik Mastercard for Business is also Free, and also offers the itemized splitting of expenses.

But in terms of rewards and stuff, might as well just get a personal card and just use it exclusively for business expenses (sure technically you're not supposed to on some cards but how would they know). The only extra work you'd have to do is split the expenses manually.

[NLI10D]

wouldn't those personal CC with cashback be any good in situations like this?

[Derek]

We use an Amex business card. They have two good options:

1. The American Express® AIR MILES®* Gold Business Card - the only NO FEE business card that lets you earn 1 Air Miles reward mile for $20 in purchases charged to your Card. Apply now. (http://click.linksynergy.com/fs-bin/click?id=CAqD7bLWUPI&offerid=85978.10000028&type=3&subid=0) (it's an RFD referral link, we'd appreciate it if you use it)

2. American Express® Business Card. No annual fee. Cash rebate up to $1,250 per year. (http://www.americanexpress.com/canada/en/smallbusiness_main.shtml?ca_en_nu=global)

I use the cash back one, it's 1% if memory serves which is pretty good for business. If you like Air Miles the other card is a great option and it's something you could use and either give away a trip to employees or yourself :)

[DBM]

Thanks for all that guys,
We're considering the AMEX- but one thing that came up is that wouldn't we need another card, like a visa or something, since AMEX isn't accepted everywhere...?

[Derek]

Thanks for all that guys,
We're considering the AMEX- but one thing that came up is that wouldn't we need another card, like a visa or something, since AMEX isn't accepted everywhere...?

Depends on what you're buying. If you're making business purchases at stores that usually sell to businesses, they'll generally accept it. If you're making business purchases as a consumer, yeah, you'll need another back up.

[sonypcs]

You can also try amex small business card, no annual fee plus cash back.

http://www.americanexpress.ca

[ebizimage]

No suggestion...

When I looked around for a business credit card a year ago, I couldn't find anything 'free'. Business card also do not come with any (or only very little) 'points'.

I now use one of my personl credit cards for all my business use. When the bill comes, I reimburse myself using company cheque.

I'm curious to know what option is available now.

Try BMO's Mosiac with airmiles for business or Amex's business cash rebate one. If you are willing to pay annual fee, you can get more reward.

[aimie]

I would go for one that offers Airmiles or Aeroplan miles. This one, http://www.cibccards.com/aerogoldap2001801/ offers 10,000 Aeroplan miles for signing up alone. A free round-trip flight can be had for 25,000 Aeroplan miles.

If you check out a few of the cards offering a similar bonus, it would be easy to rack up free flights.

[brendonp]

I use a CIBC Business Aerogold card. Hefty fee of $200 per year, but I rack up enough points to take my wife and I to Europe every year - worth it, IMO. Also has a 10.9% balance for those of you that don't pay your balance every month - that being said, always pay your balance! However, if you wind up carrying 10-20k on a card one month, the difference between 10.9% and 19.9% can be significant.

[LeafsRbest]

Great post! Maybe this should be a sticky?

Anyways, what if I want to put my bill payments; cable, hydro, gas for my business on the AmEx card, will this work?


Thanks!

[Aquanaut]

Hi guys,

Here is a small update from me. I applied for the RBC Business Visa ($12 annual fee option, no rewards) and got the card in May 06. Have been using it since.

It looks like you need to spend >$10K per year on your card to break-even (annual fees vs. rewards) for most banks' cards. Perhaps AMEX is an exception?

Good luck to all of you...

Aquanaut

[Kaitlyn]

A number of people have said they use their personal card and then pay it from the company account.

Most, if not all, credit cards' terms mention that rewards cannot be applied towards non-personal purchases...

So, aren't you all violating their terms?

[bby]

A number of people have said they use their personal card and then pay it from the company account.

Most, if not all, credit cards' terms mention that rewards cannot be applied towards non-personal purchases...

So, aren't you all violating their terms?

Sounds like it would be interesting if I understood what you were saying.

Did you mean to say something slightly different. Or if I simply don't understand, would you kindly clarify.

[runamuck]

great info guys..

i'll probably end up going with the amex myself.

[got2be]

CreditCards.ca (http://www.creditcards.ca/) is a decent place to compare credit card options. A bit of the information is stale, but mostly current.

I use the CitiBank KidsFutures until I max out my kids RESP contribution on the card, then on to AMEX with airmiles. :) Both have no annual fees. That's my $0.02.

[Ron]

A number of people have said they use their personal card and then pay it from the company account.

Most, if not all, credit cards' terms mention that rewards cannot be applied towards non-personal purchases...

So, aren't you all violating their terms?

Do you think they really care as long as they are making money on you?

[nolookingca]

A number of people have said they use their personal card and then pay it from the company account.

Most, if not all, credit cards' terms mention that rewards cannot be applied towards non-personal purchases...

So, aren't you all violating their terms?

Actually, if I'm reading this correctly, what people are suggesting is that they get a personal CC, pay it from their personal account, and then get reimbursed from the company for the expenses. Then I assume they use the rewards on personal items.

[Crowbarfoot]

Great post! Maybe this should be a sticky?

Anyways, what if I want to put my bill payments; cable, hydro, gas for my business on the AmEx card, will this work?


Thanks!

Just have those companies bill directly to your card each month if they provide that service.