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Header 3 reasons small businesses should have a business credit card
• Oct. 11, 2023

For many business owners, a business credit card isn't something that's nice to have. Rather, it's a necessity.

It's easy to think of business credit cards as something limited to big, complex organizations. But small business owners are eligible to apply for them too. Indeed, a business credit card can be a helpful tool for managing the day-to-day expenses and cashflow of a business. Whether your business has multiple owners or you're a sole proprietor, you can apply for a business credit card.

Even if you're just getting started on your entrepreneurial journey – say you're turning that side hustle into your full-time gig – it can be helpful to learn about the different types of business credits cards available at TD, and possibly apply for the one that best suits your (new) business needs.

But why should you apply in the first place? TD Stories sat down with members of the TD Business Credit Card Product team to learn about three reasons why your small business may need its own business credit card.

Keep your business and personal accounts separate

"Along with potentially accessing more credit, one of the benefits of a business credit card is the ability to better differentiate between business versus personal expenses", says Andrew Szabados, Business Credit Cards Campaign Manager at TD.

"If you already have a personal credit card, it might be tempting to start charging business expenses to that existing card. But it's important to make it a habit of separating your accounts early on in your entrepreneurial journey for a number of reasons, including getting a better understanding of your business's financial health,” Szabados said.

It's something Toronto-based small business owner Adila Cokar stressed in a recent interview with MoneyTalk.

After more than 10 years spent helping other brands with responsible garment manufacturing, Cokar founded The Good Tee, which she describes as a sustainably focused brand that makes premium basics for adults and children.

At home, her TD® Aeroplan® Visa* Business Card helps her create boundaries between her personal and business expenses, she says.

"So it's really important, when you have a business," she tells MoneyTalk, "To separate your business transactions from your personal expenses, because if you start mixing things, you'll never know the true health of your business."

"And it makes it impossible to work on your cash flow and do projections, plus, running reports becomes a nightmare if you're mixing transactions. And it makes it really difficult to apply for loans and grants."

More easily track your expenses

When you have a TD personal credit card, you can review your personal transactions anytime online via EasyWeb or on the TD app. With a TD business credit card, you get access to those platforms, as well as to the TD Card Management Tool.

With this tool, you can view a dashboard of the business expenses you charge to your TD Business Credit Card and create customizable reports with up to 18 months of business transaction data. You can also search your spending by different parameters (like vendor or date) and access insights like your payment history, balances and more.

If you have additional cardholders on your TD Business Credit Card account, the tool helps you manage their purchasing activities, too. Not only can you track their spending, but you can set restrictions like spend type and geography, temporarily turn on and off cards, and redistribute available credit between your additional cardholders at any time.

Let's say you have $10,000 in available credit and two employees (plus yourself), explains Szabados, the Business Credit Cards Campaign Manager at TD. You can arrange the credit limit among all three cards as you see fit: for example, give your card a $5,000 credit limit, while each employee's card gets a limit of $2,500.

With the TD Card Management Tool, you can quickly see how your employees are using their cards and monitor business-related spending in real time.

Earn points, Cash Back or save with a low interest rate

Just like a TD personal credit card, TD Business Credit Cards have different features and benefits. For example, some TD Business Credit Cards let you earn loyalty rewards – be it TD Rewards Points or Aeroplan points or Cash Back Dollars – for purchase transactions, while the TD Business Select Rate Credit Card offers an interest rate that is lower than other TD Business Credit Cards

By using her TD® Aeroplan® Visa* Business Card, Cokar was able to redeem her Aeroplan points at a crucial time for The Good Tee.

"I put all of my business transactions – as many as I can – onto my TD Business Credit Card, so everything from my supplies, couriers, and any payments that I need to make to vendors… so that I can quickly rack up Aeroplan points." she tells MoneyTalk.

"More recently, I actually had to fly to India last minute, and it was kind of tough to get a flight. So I ended up using my points, and I flew to India and I was able to meet new vendors, as well as meet with my current suppliers . So having the use of the points for this business trip was super helpful."

If you're already earning points on your personal TD Aeroplan® Credit Card, you can use the same Aeroplan number with your business TD Aeroplan Credit Card to help maximize the Aeroplan points you can earn.

TD Business Visa Credit Cardholders can also access additional programs, such as the Visa SavingsEdge Program[i], a program just for business credit cardholders. You can enroll in the program for free and enjoy discounts of up to 25% off on qualifying business purchases, including business travel and entertainment, computers and electronics, business services and more.

It's all about making the most of what might just be an essential tool for small business owners.

TD also offers the TD Business Cash Back Visa* Card for customers who prefer earn cash on their eligible business purchases and the TD Business Select Rate Visa* Card for businesses looking for a low interest rate card.

Learn about which TD Business Credit Card might be best for your business by speaking to a TD Business Banking Specialist.

[i] The Visa Savings Edge Program is provided by Visa Canada. The Toronto-Dominion Bank and its affiliates accept no responsibility in respect of this Program. For Air Canada and Aeroplan trademark ownership details see: http://www.td.com/aeroplancard...

* Trademark of Visa International; Used under license.

®The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.

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