Small business owners looking to offset their costs can choose from a plethora of options. Some give cash back, others offer trips and related services. Here are some of the major credit cards and the rewards that go with them:
American Express Business Gold Rewards Card
Annual fee: None for the first year; $180 after that.
Interest rate: This is a charge card, not a credit card; it needs to be paid in full each month. Interest is 30 per cent when the card is not paid on time.
Credit limit: Adjusts according to your spending patterns.
Features:
- Bonus of 25,000 rewards points if you charge $3,000 in purchases during first three months.
- One membership rewards point for every dollar in purchase (no cap or expiration date).
- Annual thank-you bonus of up to 40,000 points a year.
Tip: Redeeming points is a good way to replenish office equipment or reward customers and employees.
BMO Premium CashBack MasterCard for Business
Annual fee: $69
Interest rate: 19.5 per cent. Low-rate option: 12.9 per cent for $50 a year
Features: 1 per cent cash back on every purchase in the form of a yearly rebate on your account. For example, if you spend $12,000 in one year, you'll get a $120 credit.
Tip: You get free membership in basic BMO Roadside Assistance program (includes battery boosts, flat tire changes).
Capital One Cash Back Plus Platinum MasterCard
Annual fee: $99
Interest rate: 19.8 per cent on purchases, balance transfers and cash advances
Credit lines: $5,000 to $15,000
Features: 1 per cent cash back up to $15,000, 2 per cent from $15,000 to $100,000, 1.5 per cent above $100,000.
Tip: A good way to save money on large office or equipment purchases. There's no limit on the amount you can earn and no expiry date. Choose either a statement credit or a cheque.
CIBC Aerogold VISA Card for Business
Annual fee: $180
Interest rate: Currently as low as 10.9 per cent
Credit limit: $5,000 minimum
Features:
- Earn 1 Aeroplan Mile for every dollar charged, redeemable for reward travel on Air Canada and its travel partners.
- Bonus of 15,000 Aeroplan Miles when you use the card for the first time.
- Earn 1.5 Aeroplan Miles for every dollar you spend on travel.
Tip: One of the fastest ways to obtain a free trip and save on business travel for the year.
Annual fee: $120
Interest rate: 19.99 per cent
Credit limit: Minimum $2,500; no set maximum limit.
Features:
- Earn 1 point for each $1 spent.
- Sign-up bonuses are offered throughout the year.
- Receive 15,000 bonus points on sign-up and another 10,000 on first-year renewal.
- Earn 1 point for each $1 spent.
- RBC rewards program includes travel, merchandise, gift certificates, financial rewards and more.
Tip: Travel and non-travel rewards are available. Only 15,000 points for a short-haul flight on any airline.
Annual fee: $149
Interest rate: 19.75 per cent
Credit limit: $1,000 minimum
Features:
- Three TD points for every dollar spent.
- Allows you to redeem for any travel expenses you charge to the card including air, package, hotel, car rental, train.
- Points do not expire as long as you remain a cardholder.
Tip: Not limited to "reward" seats and you don't have to book in advance. There are no seat restrictions, blackout periods or advance booking requirements. With TD Points, you can travel any time of year, including peak periods and during seat sales.