Small Business 101
Small business 101
Why you should consider a business credit card to keep track of your business’ spending
As a business owner you’ve already got a lot to worry about, including managing your expenses. Learn how a business credit card can help you manage your business’ cash flow, expenses and more.
Joseph Campagna
Sep. 12, 2022
5-minute read
Does tracking your business’ cash flow keep you up at night?
You can simplify the way you bank by separating your personal and business banking. Manage your cash flow easily with the right business credit card. Using a business credit card will make things easier for your bookkeeper or accountant and less expensive for you. You can pay less in accounting fees since your accountant or bookkeeper won’t have to sort through your personal and business expenses, especially when it’s time to reconcile your income, expenses and taxes.
Since business expenses are generally tax deductible, every swipe or tap is an opportunity to lower your taxable income. Separating personal and business expenses makes record-keeping a lot easier during tax time, and even more so if the Canada Revenue Agency were to do an audit. Learn more about the benefits of separating personal and business expenses in this article.
That said, a credit card puts you in control of how you manage your business’ cash flow and expenses, pay suppliers or purchase goods and services. When selecting a credit card for your business, you can either choose a CIBC personal or business liability card.
Why you should use a personal or business liability credit card to keep track of spending
- Avoid paying extra transaction fees for cheques and debits that clear from your business account. When you use a CIBC business credit card, you can also earn travel rewards, such as Aventura or Aeroplan points.
- Use your card at more than 24 million Visa* locations around the world.
- Extend cash flow by taking advantage of the interest-free grace period, which is usually 21 days from your monthly credit card statement date. If your supplier has terms to pay within 30 days and they allow you to pay by credit card, you’ve taken charge of your cash flow and extended your terms by an additional 3 weeks.
What is the interest-free grace period?
It’s the period between the end of a credit card billing cycle and payment due date. During this time, you won’t be charged interest as long as you pay your total balance by the due date.
If you don’t pay the total balance by the due date, you’ll be charged interest from the date of the transaction. The interest-free grace period does not apply to cash advances, balance transfers or Convenience Cheques.
The benefits of using a personal liability business credit card
- Give credit card access to your employees and issue a maximum of 10 cards. This includes one primary card and up to nine authorized users.
- Track your business expenses anytime using CIBC Online Banking® and CIBC Mobile Banking®.
CIBC personal liability business credit cards include:
The benefits of using a business liability credit card
- The liability is against your business, however you’ll need to provide your personal guarantee as the owner of the business.
- Give credit card access to your employees and issue a maximum of 15 cards. This includes one primary or reward officer and up to 14 authorized users.
- Save more with Visa SavingsEdge Opens in a new window.. This program provides enrolled Visa Business cardholders automatic discounts on qualifying purchases at participating merchants. Discounts are applied as credits on cardholders' future account statements, so there are no coupon codes required. Enroll for free For Visa SavingsEdge. Opens in a new window..
- Track your business’ balances and transactions using Visa Spend Clarity for Business, a spend-management technology for businesses of all sizes. Learn how to enroll for Visa Spend Clarity for Business.
CIBC business liability credit cards include:
How to apply for a CIBC business credit card
Applying for a CIBC business credit card is like applying for any personal credit card.
Applying for a CIBC Business Plus credit card is like applying for a business loan or line of credit.
Gather the following:
- Financial statements for the last two fiscal years
- Personal T1 General Tax Return and Notices of Assessments for the last two tax years for all owners and guarantor
- Business registration documents, if applicable
- Personal IDs for each owner, as applicable
To learn more about our current business credit card offers, visit CIBC Business Banking.
Connect with a CIBC business advisor for a no-cost, no-commitment consultation. Whether your business is big or small, you’ll have a single point of contact at CIBC to support your business and personal banking.
To discuss your Business Banking needs
Book a chat with one of our advisors. They can help set you up for success, today and into the future.
Written By
Joseph Campagna
Joseph Campagna is a CIBC Business Banking professional with expertise in deposits, cash management and credit. He has extensive experience developing relationships, providing advice and helping Business and Commercial Banking clients achieve their financial goals.
