Managing and growing your business with credit, and business credit cards
Table of contents
Here at Levr.ai, we strive to find businesses the RIGHT loan based on their needs and financial goals. This will be one of the few articles you’ll find that doesn’t push any specific credit card and anything linked in this blog is NOT commissioned.
Given we’re in the business of helping businesses make good financial decisions and access more financial loan/lending opportunities it would be amiss of us not to discuss The Business Credit Card. When used properly, it can be an invaluable tool.
Continue reading if you want to know more about Business Credit Cards, tips, and tricks to using and managing them as well as some other important information.
What is a business credit card?
A business credit card is a credit card specifically designed for business expenses. It is used by business owners, executives, and employees to pay for expenses related to the operation of the business.
These expenses may include purchasing supplies, equipment, and services, as well as travel expenses and other costs associated with conducting business.
Business credit cards typically offer a range of benefits, including rewards programs, cashback incentives, and discounts on purchases made with the card. They may also offer higher credit limits than personal credit cards and provide additional tools and services designed to help businesses manage their finances more effectively.
Some business credit cards may require a personal guarantee, which means that the business owner is personally liable for any debts incurred on the card.
Other business credit cards may not require a personal guarantee, but they may require the business to have a certain level of the creditworthiness or financial stability to qualify.
Overall, business credit cards can be a useful tool for managing expenses and improving cash flow for small businesses, but it is important to use them responsibly and pay off balances in full to avoid accruing high-interest charges and fees.
What is the difference between a business credit card and a small-business credit card?
A business credit card and a small-business credit card are essentially the same things, as they are both credit cards designed specifically for business use.
However, some credit card issuers may use the terms interchangeably, while others may use “small-business credit card” to specifically refer to credit cards designed for small businesses with lower credit limits or different rewards programs.
In general, business credit cards and small-business credit cards offer similar benefits and features, such as rewards and cash back on business purchases, expense tracking tools, and the ability to add employee cards with customized spending limits. They may also have similar eligibility requirements, such as proof of business ownership or income.
What is the difference between a business credit card and a corporate card?
A business credit card and a corporate card are two types of credit cards designed for business use, but they have some key differences:
- Ownership: A business credit card is typically owned by the individual who applies for it and is personally responsible for making payments, while a corporate card is owned by the company or organization and is usually paid for by the company directly.
- Liability: With a business credit card, the individual is personally liable for making payments and is responsible for any debt incurred on the card. With a corporate card, the company is usually liable for any debt incurred by employees using the card.
- Credit limits: Business credit cards typically have lower credit limits compared to corporate cards, which are often used for larger expenses and may have higher credit limits.
- Employee cards: Business credit cards may allow you to add employee cards with customized spending limits, while corporate cards are often issued to specific employees with predetermined spending limits.
- Rewards and benefits: Business credit cards may offer rewards and benefits that are geared towards individual cardholders, while corporate cards may offer rewards and benefits that are geared towards the company as a whole.
Overall, the main differences between a business credit card and a corporate card are the ownership, liability, credit limits, employee cards, and rewards and benefits offered. Which card is best for your business depends on your specific needs and spending patterns.
Top 5 things to consider when getting a business credit card:
When getting a business credit card, there are several things to consider. Here are the top 5 things to keep in mind:
- Rewards and benefits: Consider the rewards and benefits offered by the card, such as cashback, points, miles, and travel benefits. Choose a card that aligns with your business needs and spending patterns.
- Fees and interest rates: Consider the fees associated with the card, such as annual fees, balance transfer fees, foreign transaction fees, and late payment fees. Also, pay attention to the interest rate, which can impact your overall costs.
- Credit score requirements: Consider the credit score requirements for the card. Some cards require a high credit score, while others are more lenient. Check your credit score before applying and choose a card that you are likely to qualify for.
- Spending limits: Consider the spending limits on the card, as well as any restrictions on certain types of purchases. Make sure the card offers enough flexibility for your business needs.
- Reporting and tracking: Consider how the card reports to credit bureaus and how you will track your spending and payments. Choose a card that offers clear and easy-to-use reporting and tracking tools.
Overall, it’s important to choose a business credit card that aligns with your business needs and goals, while also offering fair and transparent fees, rewards, and benefits.
FAQs about business credit cards in Canada
We’ve searched the web, and consulted Google search engine results page and its handy-dandy fairly new knowledge graph that simplifies answers to queries in a question format.
At Levr.ai, we also have an incredible team of experts—our co-founder and CEO, Kaylan. Our head of Partnerships, Shane, and our Head of Business Development Tara. This team has experience working with some of Canada’s major banks – RBC Royal Bank, CIBC, and BDC.
These finance lovin’ professionals have been working in the Canadian banking industry collectively for over 30 years. Therefore, this list of FAQs also took their business client experience into consideration as well.
Here we go!
- What are the eligibility requirements for a business credit card in Canada? To qualify for a business credit card in Canada, the business must typically have a registered business name and number, a good credit score, and a minimum annual revenue.
- What benefits do business credit cards offer in Canada? Business credit cards in Canada often offer benefits such as rewards programs, insurance coverage, travel benefits, and cash flow management tools.
- Can I apply for a business credit card if my business is new and has no credit history? Yes, you can apply for a business credit card even if your business is new and has no credit history. However, you may be required to provide personal credit information or sign a personal guarantee.
- Can I use a business credit card for personal expenses? No, you should not use a business credit card for personal expenses. Doing so can cause confusion and make it difficult to accurately track business expenses. Seems obvious, but felt compelled to clear up any confusion!
- How can I monitor my business credit card expenses? Many business credit cards offer online account management tools that allow you to monitor your expenses, track employee spending, and generate reports for tax and accounting purposes.
- How can I build my business credit score with a business credit card? To build your business credit score with a business credit card, it’s important to use the card responsibly, make on-time payments, and keep your credit utilization low. Over time, your positive credit history with the card can help improve your business credit score.
- Can I transfer a balance from another credit card to my business credit card? Yes, many business credit cards in Canada offer balance transfer options. Be sure to check the balance of transfer fees and interest rates before making a transfer.
- Do business credit cards in Canada have annual fees? Some business credit cards in Canada have annual fees, while others do not. It’s important to consider the benefits and costs of each card before choosing one that’s right for your business.
What is required to qualify for a business credit card?
To qualify for a business credit card, you typically need to meet certain eligibility criteria set by the credit card issuer. Here are some of the most common requirements in no particular order:
- Business entity: You need to have a registered business entity, such as a corporation, sole proprietorship, partnership, or LLC.
- Business credit history: You may need to have an established business credit history, which can be established by opening accounts with vendors, suppliers, and lenders and paying bills on time.
- Personal credit history: Your personal credit history may also be considered when applying for a business credit card, as the issuer may want to assess your ability to manage credit and make payments on time.
- Revenue: You may need to have a minimum annual revenue or sales to qualify for some business credit cards.
- Documentation: You may need to provide documentation to prove your business entity, such as articles of incorporation, business license, or tax ID number.
- Ownership and responsibility: You may need to be an owner or authorized representative of the business and be responsible for the card and its use.
It’s important to note that requirements for business credit cards may vary by issuer and by the specific card, so it’s a good idea to review the eligibility criteria carefully before applying.
Does a business credit card need a personal guarantee?
Many business credit cards require a personal guarantee from the business owner or another authorized individual, especially if the business is relatively new or does not have a well-established credit history.
A personal guarantee is a promise that the individual will personally pay back any debt incurred on the business credit card if the business is unable to make payments.
Providing a personal guarantee can help increase the chances of approval for a business credit card, as it reassures the credit card issuer that there is a backup plan for repayment if the business is unable to make payments.
It also means that the individual is personally liable for any debt incurred on the card, which can have implications for personal credit scores and financial well-being if payments are missed or if the business experiences financial difficulties.
Some business credit card issuers may offer cards without a personal guarantee, but these are typically reserved for businesses with established credit histories and strong financials.
How long does it take to get a business credit card?
The length of time it takes to get a business credit card can vary depending on several factors, including the credit card issuer, the completeness of your application, and the verification and approval process.
In some cases, you may be able to get approved for a business credit card within a few minutes of submitting your application online, especially if you have a strong credit score and financial history.
In other cases, it may take several days or even weeks to get approved, particularly if the issuer requires additional verification of your business or financial information.
Once you are approved for a business credit card, you can generally expect to receive it in the mail within 7-10 business days. Some issuers may offer expedited shipping for an additional fee, which can help you get your card faster.
Overall, the timeline for getting a business credit card can vary depending on several factors, but most applications are typically processed within a few days to a couple of weeks, with the card arriving in the mail shortly thereafter.
Looking for a business loan?
Why should a business have a business credit card?
There are several reasons why a business should have a business credit card, the most common is to easily separate business and personal expenses. Using a business credit card helps to separate business expenses from personal expenses. This can make it easier to track and manage expenses, especially during tax season.
If there isn’t any outstanding balance owed, business credit cards allow you to carry current month transactions interest-free for a period of 21 to 30 days. This allows for improved cash flow and more financial flexibility for the business. Providing a convenient way to make purchases and pay bills without having to dip into cash reserves or take out loans.
Like their personal credit card counterparts, business credit cards lure in customers by offering a wide range of rewards and benefits including, rewards programs, cashback incentives, and other benefits that can help the business save money or earn rewards on purchases. These benefits can help lower costs for the business on items they would have otherwise had to pay for like any other expense.
Another common reason that offers some financial oversight is better employee expense management. Business credit cards can be issued to employees with set spending limits and expense-tracking features. This can help to manage employee expenses and prevent unauthorized purchases.
Lastly, business credit cards serve as an easy way for new businesses to build credit history. Using a business credit card responsibly and paying off balances in full can help to build the business’s credit history, which can be useful for securing financing or loans in the future when required.
Overall, a business credit card can be a valuable tool for managing expenses, improving cash flow, and building credit for a small business. However, it is important to use the card responsibly and avoid accumulating high-interest charges and fees.
The most common perks offered by business credit cards.
Business credit cards often offer a range of perks and benefits designed to help businesses save money, earn rewards, and manage their expenses more effectively.
Here are some of the most common perks offered by business credit cards:
- Rewards programs: Many business credit cards offer rewards programs that allow businesses to earn points or cash back on purchases made with the card. These rewards can be used to offset the cost of future purchases or redeemed for other benefits, such as travel, merchandise, or gift cards.
- Sign-up bonuses: Business credit cards may offer sign-up bonuses, such as a large number of reward points or cash back, for new cardholders who meet certain spending requirements within a specified time frame.
- Travel benefits: Many business credit cards offer travel-related perks, such as free airport lounge access, travel insurance, or discounts on airfare, hotels, and car rentals.
- Cashflow management tools: Some business credit cards offer tools and services designed to help businesses manage their cash flow more effectively, such as automatic expense tracking and categorization, customizable spending limits for employees, and real-time spending alerts.
- Purchase protection: Business credit cards may offer purchase protection, such as extended warranties, purchase protection against theft or damage, and fraud protection.
- Business-specific benefits: Some business credit cards offer benefits tailored specifically to the needs of small businesses, such as discounts on business services, marketing tools, or software.
Overall, business credit cards can offer a range of perks and benefits that can help businesses save money, earn rewards, and manage their expenses more effectively. It’s important to determine what would be the most beneficial for your business and team and compare and contrast each business card offers.
Using business credit cards to grow your business
Yes! You can use business credit cards wisely to grow your business. When used properly, business credit cards can provide many benefits to small business owners, including access to credit for short-term cash flow needs, earning rewards on business expenses, and building business credit.
To use business credit cards wisely, here are some tips:
- Use your business credit card for business expenses only. Avoid using it for personal expenses to avoid confusion and maintain accurate records.
- Keep your credit utilization low. High credit utilization can negatively impact your credit score and increase your interest charges. Try to keep your credit utilization below 30% of your credit limit.
- Pay your balance in full each month. Paying your balance in full each month can help you avoid interest charges and keep your debt under control.
- Take advantage of rewards programs. Many business credit cards offer rewards programs that can provide valuable benefits to your business, such as cash-back, points, or miles. Be sure to choose a rewards program that fits your business’s needs and spending habits.
- Monitor your account regularly. Keep track of your expenses and monitor your account regularly to ensure there are no unauthorized charges or errors.
By following these tips, you can use business credit cards wisely to grow your business and take advantage of the benefits they provide.
Looking for a business loan?
What are the most highly ranked business credit cards for Canadians?
There are several business credit cards available in Canada, each with its own set of features and benefits. Here are some of the most highly ranked business credit cards for Canadians, based on rewards, benefits, fees, and other factors.
By no means is this an exhaustive list, and there could be a better card for your business. This is simply what our team found over and over again when researching business credit cards.
- American Express Business Edge Card: This card offers a generous rewards program with up to 3X points on eligible business expenses, such as office supplies, advertising, and gas. It also offers travel benefits, purchase protection, and a low annual fee.
- Scotiabank Passport for Business Visa Card: This card offers a comprehensive travel rewards program with no foreign transaction fees, airport lounge access, and travel insurance. It also offers cash back on all other purchases and a low annual fee.
- BMO Air Miles Business Mastercard: This card offers Air Miles rewards points on all purchases, with a bonus for gas and office supply expenses. It also offers travel benefits, purchase protection, and no annual fee.
- CIBC Aeroplan Business Visa Card: This card offers Aeroplan rewards points on all purchases, with a bonus for gas and travel expenses. It also offers travel benefits, purchase protection, and a low annual fee.
- TD Business Travel Visa Card: This card offers rewards points on all purchases, with a bonus for travel expenses. It also offers travel benefits, purchase protection, and a low annual fee.
Overall, the best business credit card for a Canadian business will depend on the specific needs of the business, including the types of purchases made and the desired rewards and benefits.
Best ways to manage business credit cards
What are some good processes and controls to have in place with staff using business credit cards?
Implementing processes and controls for staff using business credit cards is essential to ensure that the cards are used responsibly and within the limits set by the business. Here are some good practices to consider:
- Develop a clear policy: Establish a written policy outlining the appropriate use of business credit cards, including guidelines on allowable expenses, spending limits, and consequences for misuse. Make sure all staff members who are issued cards are trained on the policy.
- Control access: Limit the number of employees who have access to business credit cards and provide each employee with their own card. Set spending limits for each card and restrict the types of purchases that can be made.
- Require receipts: Require employees to provide receipts for all purchases made with the business credit card. This will help to ensure that expenses are properly tracked and accounted for. In particular for food and entertainment expenses as employees to also provide an itemized receipt to ensure the amount spent aligns with invites and also act as a well to encourage responsible drinking with company funds.
- Review expenses regularly: Regularly review and reconcile business credit card statements to ensure that expenses are legitimate and within the guidelines set by the business.
- Monitor usage: Use software or other tools to monitor business credit card usage and detect any suspicious activity, such as purchases made outside of business hours or in unusual locations.
- Conduct periodic audits: Conduct periodic audits of business credit card usage to ensure that the policy is being followed and that expenses are properly recorded and accounted for.
By implementing these processes and controls, businesses can ensure that their staff members are using business credit cards responsibly and that expenses are properly tracked and accounted for.
How often should I pay the balance on my business credit card?
It is generally a good practice to pay the balance on your business credit card in full every month by the due date to avoid accumulating interest charges and maintain a good credit score.
By paying your balance in full and on time each month, you can avoid paying high-interest charges on any outstanding balance, which can quickly add up and become a burden on your business finances.
Making timely payments can help to establish a positive credit history for your business, which can be important if you ever need to apply for a loan or other type of credit in the future.
If for any reason you cannot pay your balance in full, you should try to make the minimum payment required by the due date to avoid late payment fees and negative impacts on your credit score. However, it is always best to pay the balance in full whenever possible.
Business credit cards make it easy to do expense reports.
Many business credit cards offer features and tools that can make it easier to manage and track expenses for business purposes, including the ability to generate detailed expense reports.
Some of the features that may be available on business credit cards to help with expense reporting include:
- Transaction categorization: Business credit cards may automatically categorize transactions by expense types, such as travel, office supplies, or meals and entertainment, making it easier to track spending in different categories.
- Online account management: Many business credit cards offer online account management tools that allow you to view and track your transactions in real time, making it easy to monitor your spending and stay on top of your expenses.
- Receipt capture: Some business credit cards offer the ability to capture and store digital receipts, which can simplify the process of matching expenses to specific transactions.
- Integration with expense management software: Some business credit cards may integrate with third-party expense management software, such as Concur or Expensify, which can automate the process of creating expense reports and streamline the reimbursement process.
By using a business credit card with these types of features, you can simplify the process of managing and tracking your business expenses, which can save you time and make it easier to stay on top of your finances.
Best business card transaction tracker template.
There are many templates available for tracking expenses for business credit cards. Here is a simple template that you can use to get started:
Create a spreadsheet with columns for the following information:
- Date of transaction
- Description of expense
- Vendor or merchant name
- Category of expense (e.g. travel, office supplies, meals, and entertainment)
- Amount of transaction
- Credit card used
Enter the relevant information for each credit card transaction into the appropriate columns.
Use filters or sorting functions to group transactions by category, date, or credit card used, as needed.
Review the spreadsheet regularly to ensure that all transactions have been accurately recorded and categorized.
Use the data in the spreadsheet to create reports or summaries of credit card expenses, as needed, to help with budgeting, forecasting, or expense management.
You can also use expense management software that integrates with your business credit card to automatically import transactions and categorize expenses. Many of these software options also offer reporting and analytics features that can help you better understand your business credit card spending.
Best employee expense software that connects to credit cards.
There are several popular employee expense software options that integrate with credit cards and can help simplify the process of tracking employee expenses.
Here are five examples:
- Expensify: Expensify is a cloud-based expense management software that offers receipt and expense tracking, automatic expense reporting, and reimbursement processing. Expensify integrates with most major credit card providers, making it easy to import credit card transactions and reconcile expenses.
- Concur: Concur is a comprehensive expense management platform that offers features such as travel booking, expense reporting, and invoice management. Concur integrates with many major credit card providers, allowing for automatic expense capture and reconciliation.
- Zoho Expense: Zoho Expense is a cloud-based expense reporting software that offers features such as receipt scanning, automatic expense categorization, and multi-currency support. Zoho Expense integrates with several major credit card providers to simplify expense tracking.
- Abacus: Abacus is a real-time expense reporting and management software that offers features such as automated expense tracking, reimbursement processing, and customized expense policies. Abacus integrates with many major credit card providers, allowing for automatic transaction import and expense tracking.
- QuickBooks Online: QuickBooks Online is a popular accounting software that also offers expense tracking and management tools. QuickBooks Online integrates with several major credit card providers, making it easy to import transactions and reconcile expenses.
Ultimately, the best employee expense software for your business will depend on your specific needs and budget. It’s important to evaluate your options carefully and choose software that offers the features and functionality that will best support your business.
Looking for a business loan?
How common is employee abuse of corporate credit cards?
Employee abuse of corporate credit cards is not very common, but it can happen in some cases. This is why it is important for companies to have strong policies and controls in place to prevent and detect potential abuse.
The top 3 most common forms of employee abuse of corporate credit cards include:
- Personal use: Employees may use their corporate credit cards for personal expenses, such as dining out, shopping, or travel that is not business-related.
- Overcharging: Employees may charge more than what is necessary for business expenses in order to receive cash back or rewards from the credit card issuer.
- Expense fraud: Employees may submit fraudulent or inflated expense reports with the intention of receiving reimbursements for expenses that were not actually incurred or that were personal in nature.
To prevent and detect employee abuse of corporate credit cards, companies should have clear policies and procedures in place that outline the acceptable use of corporate credit cards and provide guidelines for submitting and approving expense reports.
Companies should also monitor credit card transactions and expense reports regularly, and conduct audits or reviews to ensure compliance with policies and procedures.
Companies can consider implementing technology solutions such as expense management software that can automate the expense reporting process and help identify potential fraud or abuse.
By taking these steps, companies can help prevent and detect potential abuse of corporate credit cards and ensure that employees are using them appropriately for business purposes.
Canadian-based businesses and US business credit cards
Can a Canadian-based business qualify for a US business credit card?
Yes! Canadian-based businesses can qualify for US business credit cards. However, the eligibility criteria may vary depending on the issuer and the specific card.
Some US-based credit card issuers may require a US-based business entity, a US-based bank account, or a US-based business address, while others may not have such requirements.
Additionally, Canadian businesses may need to provide additional documentation to apply for a US-based business credit card, such as a tax identification number and proof of Canadian business registration.
One of the most trusted business credit card companies, American Express, has on occasion consulted the businesses’ use of any of its Canadian American Express cards held by the business as part of the decision-making process when approving a US American Express Card. Ask the business agent you’re working with at American Express USA, as they will have the latest policies and protocols related to this advantage.
It’s also worth noting that there may be some additional considerations when using a US-based business credit card as a Canadian business, such as foreign transaction fees and exchange rates.
Best American business cards for Canadian-based businesses.
Some of the best US-based business credit cards for Canadian-based businesses based on their rewards, benefits, fees, and other factors:
- Ink Business Preferred Credit Card: This card offers generous rewards on travel, advertising, and shipping expenses, as well as a large sign-up bonus, travel benefits, and no foreign transaction fees.
- Capital One Spark Cash for Business: This card offers a simple cash-back rewards program, with 2% cash back on all purchases, as well as a sign-up bonus and no foreign transaction fees.
- American Express Business Platinum Card: This card offers premium travel benefits, such as airport lounge access and travel credits, as well as rewards on travel expenses and a large sign-up bonus.
- Chase United MileagePlus Explorer Business Card: This card offers rewards on travel and business expenses, as well as travel benefits and a large sign-up bonus.
- CitiBusiness / AAdvantage Platinum Select Mastercard: This card offers rewards on travel and business expenses, as well as travel benefits and a large sign-up bonus.
It’s important to carefully review the terms and conditions of each card before applying, as well as any additional fees and requirements for Canadian-based businesses.
Credit management and building business credit
How many business credit cards should a business hold?
The number of business credit cards a founder should hold depends on various factors, including the size of their business, their expenses, and their financial management practices. In general, there is no one-size-fits-all answer to this question.
Some business owners may choose to hold multiple business credit cards to separate their business expenses and track their spending, as well as to take advantage of different rewards and benefits offered by each card. Others may prefer to hold only one business credit card to simplify their finances and minimize their credit utilization.
It’s important to remember that each credit card application can impact your credit score, so it’s important to apply for new credit cards only when necessary and to use credit responsibly.
Ultimately, the number of business credit cards a founder should hold depends on their individual financial situation and goals, as well as their ability to manage credit responsibly.
It may be helpful to consult with a financial advisor or accountant to determine the best strategy for your business.
Does credit card utilization rate negatively impact your business credit score?
Yes, your credit card utilization rate can have a negative impact on your business credit score. Your credit card utilization rate is the percentage of your available credit that you are currently using, and it is an important factor in determining your credit score.
If you have a high credit card utilization rate, it can indicate to lenders and credit bureaus that you are relying too heavily on credit and may be at risk of defaulting on your payments. This can lower your credit score and make it more difficult to obtain credit in the future.
To maintain a healthy credit score, it’s generally recommended to keep your credit card utilization rate below 30%, and ideally below 10%. This means that if you have a credit limit of $10,000 on your business credit card, you should aim to keep your balance below $3,000 to maintain a utilization rate of 30% or lower.
By keeping your credit card utilization rate low, you can help protect your business credit score and improve your chances of being approved for credit in the future.
How often should a business apply for a new business credit card?
There is no set timeline for how often a business should apply for a new business credit card. It largely depends on the business’s credit needs and financial goals.
Here are some factors to consider when deciding whether to apply for a new business credit card:
- Credit utilization: If the business is consistently using a high percentage of its available credit, it may make sense to apply for a new card to increase its overall credit limit and improve its credit utilization ratio.
- Rewards programs: If the business is looking to maximize its rewards earnings, it may make sense to apply for a new card with a different rewards program that better aligns with its spending habits.
- Fees and interest rates: If the business is paying high fees or interest rates on its current cards, it may be worth exploring new options to save money.
- Credit score: If the business has recently improved its credit score, it may be a good time to apply for a new card to take advantage of better terms and rewards.
In general, it’s important to use caution when applying for new credit cards, as each application can result in a hard inquiry on the business’s credit report, which can temporarily lower its credit score.
Using a business credit card vs a term loan?
Using a business credit card and a business term loan serves different purposes and can have different advantages and disadvantages depending on your business’s needs and financial situation.
A business credit card is a revolving line of credit that allows you to make purchases and payments as needed, up to a certain credit limit. Business credit cards are often used for day-to-day expenses such as office supplies, travel, and entertainment and can provide rewards or cashback for purchases. They can be useful for managing cash flow and making smaller purchases, but they tend to have higher interest rates than term loans and can lead to a cycle of debt if not used responsibly.
A term loan, on the other hand, is a lump sum of money that is borrowed and repaid over a set period of time, typically with a fixed interest rate.
Term loans are often used for larger expenses such as equipment purchases, inventory, or real estate, and can be useful for financing long-term growth or investment opportunities.
Term loans tend to have lower interest rates than credit cards but require a more extensive application process, and collateral may be required to secure the loan.
To learn more about Business Term Loans, visit our accompanying post: Understanding Business Term Loans and How They Can Help Your Business.
Looking for a business loan?
In summary, using a business credit card can be beneficial for managing day-to-day expenses and cash flow, but may come with higher interest rates and fees. A term loan can provide a lump sum of money for larger expenses and tend to have lower interest rates, but require a more extensive application process and collateral may be required.
Hopefully, you’ve enjoyed our comprehensive overview of business credit cards, specifically Canadian business credit cards.
There is a lot of information available on the subject, but at Levr.ai we thought it would be refreshing to provide you with tips & tricks without a commissionable link influencing information considered throughout this post.
We all know credit cards, and that includes business credit cards, that when used wisely can serve as a productive finance tool to grow your business. It can be a slippery slope when it comes to using credit cards for all or major business purchases and expenses.
We encourage you to review the other kinds of lending options available and see if perhaps one of those is more suitable for your business than a business credit card.
We have a library of posts that help you navigate other common business loan options such as merchant cash advance, accounts receivable (A/R) financing, venture debt financing, business term loans, or SRED financing along with business credit cards before making a final decision.
To learn more about Levr.ai and equipment financing options in the free loans marketplace, create a free account today.
Important information: Levr.ai provides financial education services in the form of blogs, posts, templates, and support documents and are intended to inform and educate readers on various financial topics, including but not limited to budgeting, investing, and small business finance. Levr.ai’s website and/or blogs etc. (mentioned above) are not to be confused with a certified accountant or financial advisor, and the information provided should not be construed as professional advice.
Clients are solely responsible for their financial decisions and actions, and Levr.ai is not liable for any damages or losses that may result from such decisions or actions. The information provided is general in nature and may not be suitable for all individuals or situations.
Clients are encouraged to seek the advice of a certified accountant or financial advisor for specific financial advice tailored to their individual circumstances. Levr.ai does not endorse any specific financial products or services and is not responsible for any third-party information or links provided.
By using Levr.ai’s financial education tools, clients acknowledge and accept these terms and any conditions of liability. For more additional information about our Terms of Service or Privacy Policy click the respective embedded links or navigate to our website footer.
