Best Startup Business Credit Cards

Starting a business in Canada? Banks will treat you like you don’t exist. No revenue history, no credit approval. It’s the ultimate catch-22: you need credit to build your business, but you need an established business to get credit.

Here’s what they don’t tell you: some business credit cards actually work for startups. Not all of them require two years of financials or six-figure revenue. Some understand that startups operate differently. They burn cash before making it. They need credit most when they qualify for it least.

Let’s talk about which business credit cards actually approve startups versus which ones just waste your time with rejections.

BMO CashBack Business Mastercard: The No-Fee Wonder That Says Yes

BMO gets it. No annual fee. No minimum revenue requirements. No complicated approval hoops. Just straightforward cashback on business expenses that every startup actually has.

10% cashback on gas, office supplies, cell phone and internet bills for your first three months. That’s real money back when you need it most. After that, 1.5% on those categories, 1.75% at Shell stations, 0.75% on everything else.

Here’s why this works for startups: you’re already paying for internet, phone service, and probably driving to meetings. Getting cashback on expenses you can’t avoid? That’s free money. Plus you can use it at Costco, which most business Amex cards can’t do.

Balance transfer option at 0% for nine months with a 3% fee. Useful if you’ve been floating expenses on personal cards. Transfer them over, pay them down interest-free while your business gains traction.

Add up to 22 employee cards at no extra cost. Premature for most startups but nice to have. Purchase protection and extended warranty included. No travel insurance but honestly, if you’re a startup flying business class, you’re doing something wrong.

American Express Business Gold Rewards: When You Need to Look Established

$199 annual fee scares off hobbyists. That’s the point. Amex Business Gold signals you’re serious even if you’re pre-revenue. No preset spending limit means they evaluate each purchase, but approved charges can exceed traditional credit limits.

Welcome bonus of up to 100,000 Membership Rewards points. Spend $7,500 in three months for 40,000 points. Another 40,000 at $30,000 in year one. Final 20,000 points for any purchase in months 15-17. That’s potentially $1,000 in statement credits.

1x point on everything isn’t exciting until you realize Membership Rewards transfer to Aeroplan, Marriott, Hilton, and others. Those points become flights and hotel nights. Suddenly that AWS bill is funding your conference travel.

Mobile device insurance up to $1,000. Purchase protection. Car rental insurance. Travel emergency medical. The insurance package alone can justify the annual fee if you’re traveling for business.

Here’s the reality: Amex evaluates businesses differently. They care more about cash flow patterns than profit. Regular deposits, consistent spending, reasonable debt levels? You might get approved even without revenue. They’re betting on your future, not your past.

RBC Avion Visa Infinite Business: The Bank Card That Actually Approves Startups

RBC claims you need $60,000 personal income or $500,000 business revenue. Here’s the secret: they’ll consider applications that don’t meet those requirements. Apply anyway. Worst case, they counter-offer the regular Avion Visa Business.

35,000 Avion points on approval. No spending requirement. That’s $750 toward travel immediately. Annual fee is $175, so you’re up $575 from day one. Not bad for a startup with no revenue.

Earn 1.25 Avion points per dollar on everything up to $75,000 annually. That’s one of the highest flat rates for business cards. After $75,000, drops to 1x. Most startups won’t hit that cap year one.

Transfer Avion points to British Airways, Cathay Pacific, American Airlines. Or use RBC’s fixed flight redemption chart. Short flights within Canada often cost just 15,000 points when cash prices are $400+. Perfect for visiting clients or investors.

DragonPass membership included but lounge visits cost $32 USD each. Visa Infinite Business Concierge for those moments when you need reservations at impossible restaurants to impress investors. It’s about appearing successful even when you’re bootstrapping.

TD Business Travel Visa: The Expedia Optimization Play

TD wants established businesses too, but they’re more flexible than they admit. The Business Travel Visa works if you book travel through Expedia for TD. 3x points there, 1.5x on everything else.

Welcome bonus varies but typically 20,000-30,000 TD Rewards points. Worth $100-150 toward travel. Annual fee around $149. Math barely works unless you’re traveling regularly.

Here’s the hack: book all business travel through Expedia for TD. Flights, hotels, car rentals. Those 3x points add up fast. Redeem them for more travel. It’s a closed loop that makes sense if you’re hitting conferences, meeting clients, or doing the startup conference circuit.

Comprehensive travel insurance including trip cancellation, medical, baggage, flight delay. Rental car coverage. Purchase protection. The insurance might save you more than the rewards earn you.

The Secured Business Card Option Nobody Talks About

Can’t get approved for anything? Some banks offer secured business cards. You put down a deposit that becomes your credit limit. Not ideal but it works.

Home Trust, Capital One, and some credit unions offer secured business options. Deposit $1,000, get $1,000 credit limit. Use it responsibly for 12-18 months. Graduate to unsecured cards.

Yes, it ties up capital. Yes, it’s annoying. But if you need to separate business and personal expenses for accounting, and nobody will approve you unsecured, this works. Plus you’re building business credit history for future applications.

The Fintech Revolution That Changes Everything

Traditional banks are losing the startup credit card game to fintech companies. Float, Ramp, Brex (US-focused but works for Canadian companies with US entities) evaluate startups differently.

They look at bank balance, not revenue. $25,000 in the bank might get you a $25,000 credit limit. They connect to your accounting software, see real-time cash flow, adjust limits monthly. It’s credit that grows with your business.

No personal guarantees required. Your business credit doesn’t affect personal credit. Expense management built in. Virtual cards for specific vendors. It’s what business credit cards should have been all along.

The catch? Most require significant cash reserves or venture funding. They’re betting on funded startups, not bootstrap operations. But if you’ve raised money or have decent reserves, these beat traditional cards hands down.

Using Personal Cards for Business: The Reality

Let’s be honest. Most startups run on founders’ personal credit cards initially. It’s not ideal but it works. The Amex Cobalt, with 5x points on food and office supplies, becomes a decent business card. Personal cashback cards work too.

The problems come at tax time. Mixing expenses makes accounting messy. You can’t build business credit history. Personal liability for business debt gets dangerous as spending scales.

Use personal cards temporarily if needed. Apply for business cards every 3-6 months as your business grows. Eventually, someone will approve you. Then transition everything over and never look back.

What Banks Actually Look For

Personal credit score still matters. 650+ helps significantly. Below 600 makes everything harder. If your personal credit sucks, fix that first or find a co-founder with better credit.

Business structure matters. Incorporated businesses get better treatment than sole proprietorships. Even a simple federal incorporation ($200) can improve approval odds. It shows you’re serious.

Time in business helps but isn’t mandatory. “New business” is better than “no business.” Register your business name, get a GST number, open a business bank account. These simple steps make you look more legitimate.

Cash flow beats profit. Regular deposits, even small ones, show activity. Better to show $5,000 monthly flowing through than $60,000 sitting static. Movement indicates life.

The Application Strategy That Works

Start with no-fee cards like BMO CashBack Business. Easier approval, no downside if rejected. Build history there first.

Apply for one card at a time. Multiple applications trigger fraud warnings. Space applications 3-6 months apart unless you’re desperate.

Apply in-branch when possible. Phone works too. Online applications for business cards often auto-reject edge cases. Human review helps when you don’t fit standard criteria.

Have your story ready. Why do you need this card? How will you pay it back? What’s your 12-month revenue projection? Confidence matters more than current revenue.

Managing Business Credit as a Startup

Keep utilization under 30% even if it’s painful. High utilization screams “cash flow problems” to banks. Better to make multiple payments monthly than max out cards.

Pay on time. Always. Set up automatic payments for at least minimums. Late payments destroy business credit faster than personal credit. One 30-day late payment can take years to overcome.

Don’t close cards even if you stop using them. Length of credit history matters for businesses too. That first BMO card you got? Keep it forever. It becomes your credit cornerstone.

Track everything obsessively. Every expense, every payment, every statement. You’ll need this for taxes anyway. Might as well build good habits early.

The Graduation Path Nobody Explains

Month 1-6: Personal cards and maybe one no-fee business card. Building initial history.

Month 7-12: Should qualify for mid-tier business cards. Amex Business Gold or similar. Higher limits, better rewards.

Month 13-24: Premium business cards become possible. Amex Business Platinum, higher-tier bank cards. Real benefits, serious limits.

Year 2+: Traditional business lines of credit open up. Term loans become possible. Credit cards become just one tool among many.

This assumes steady growth and responsible credit use. One missed payment or failed business pivot can reset everything. Stay paranoid about credit management.

Special Situations and Workarounds

New to Canada? Banks have newcomer programs. Scotiabank’s StartRight, RBC’s newcomer package, TD’s New to Canada program. These sometimes include business credit card options without Canadian credit history.

Student starting a business? Some banks offer student entrepreneur programs. Lower requirements, understanding that revenue takes time. Worth asking about even if not advertised.

Franchise owner? Franchises get special treatment. The brand recognition reduces risk in banks’ eyes. Mention franchise affiliation prominently in applications.

Seasonal business? Banks hate irregular income. Show yearly patterns, not monthly volatility. Prove the busy season covers the slow season. Have a clear story about cash flow management.

When to Not Get a Business Credit Card

If you have no path to revenue within 12 months, stop. Credit cards aren’t free money. They’re debt that needs repayment. Without revenue potential, you’re just digging a hole.

If you can’t separate business and personal mentally, don’t do it physically. Some founders can’t resist using business credit for personal expenses. That’s a path to ruin.

If your business model requires massive upfront investment, credit cards are wrong. Their interest rates kill capital-intensive businesses. Look for proper funding instead.

Making Business Credit Cards Work for Your Startup

Get the BMO CashBack Business Mastercard first. No fee, no risk, easiest approval. Use it for recurring expenses only. Build six months of perfect payment history.

Add Amex Business Gold if you can swing the fee. Higher limit, better rewards, signals growth to other lenders. Use for variable expenses and travel.

Keep utilization low on both. Under 10% if possible. Pay multiple times monthly if needed. This shows strong cash flow management.

After 12 months, evaluate. If business is growing, upgrade to premium cards. If struggling, stick with what you have. If failing, stop spending immediately.

Business credit cards are tools, not solutions. They enable growth but don’t create it. Use them wisely and they accelerate your startup. Use them poorly and they accelerate your failure.

Pick the right card. Use it responsibly. Graduate to better options. Build your business credit alongside your business. That’s how startups become established businesses that banks actually want to serve.

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