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Published Aug 17, 2025 10:39 PM UTC • 8 min read
Business credit cards are a great way to manage business expenses and maintain a separate record of business transactions. Are you unsure how a business credit card works? In this article, I am going to give you the details on how business credit cards work in Canada. So please read through to the end and maybe apply for an appropriate business credit card if one offers benefits that match your spending.
A business credit card is simply a credit card that is issued specifically for a business. It is used to charge expenses that are only related to the business. Be it a sole proprietorship, partnership, SME (small and medium enterprise), or corporation, you can apply for a business credit card no matter what your business size or type is. A business credit card helps to keep business expenses separate from personal expenses.
need to pay back the minimum amount or pay in full if you wish to do so
And now, to answer the real question. The business credit card works exactly like a personal credit card with the exception that the transactions are related to business. You can use it to conduct financial transactions any time you desire. At the end of the month, you will need to pay back the minimum amount or pay in full if you wish to do so. For any outstanding balance that you haven’t paid after the due date, you will be charged interest.
Along with this basic functionality, the business credit card also has a credit limit and features similar to personal credit cards, tailored to the business activities. Let us explore all the features of business credit cards to understand their practical applications.
At the same time,
In Canada, a personal credit card requires a personal credit score and a few personal details. At the same time, a business credit card may require a greater number of documents, depending on the nature of the business. Most small business owners will also be required to share their personal credit score when applying for a business credit card.
For an established business, you will need to share the following documents while applying for the business credit card:
Most features of business credit cards are similar to those of personal credit cards. Although the terms and conditions might differ. These features can differ from one credit card issuer to another because of different policies, terms, and conditions. So, it is good to verify what policy the credit card issuer is following.
Here are the general features or aspects of business credit cards in Canada:
Many people prefer to use the personal credit card to conduct business transactions so why does one even need a separate business credit card? Well, it is because business credit card offers several benefits and ease of use to credit card holders in Canada. These benefits and features include:
Yes, in almost all cases for small and medium-sized businesses in Canada. When you apply, you will be required to sign a personal guarantee. This is a legally binding agreement that makes you personally liable for the full amount of the debt if your business is unable to pay it.
Yes. Most major business card programs from issuers like RBC, American Express, and TD offer robust online management tools. These tools allow the primary administrator to issue supplementary cards to employees and set individual spending limits and restrictions for each card.
Yes. Your credit limit is revolving, not a static monthly cap. It is the maximum balance you can have at any one moment. As soon as a payment is processed, you "free up" that amount of credit and can use it again, regardless of where you are in the billing cycle.
About the author
Kevin Shahnazari
Kevin started FinlyWealth and juggles a bit of everything—digging into data, running our marketing, and keeping the finances on track. Before this, he spent years as a data scientist at tech companies... See full bio
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