Best Credit Card for Sole Proprietorship in Canada 2025

Running a sole proprietorship means wearing many hats, and separating business from personal expenses shouldn't add to your workload. Yet Canadian sole proprietors often struggle to qualify for traditional business credit cards designed for incorporated companies. The good news? You have more options than ever before.

This guide compares the best credit cards and modern alternatives specifically for unincorporated Canadian businesses. The "best" option depends on whether you prioritize simple expense separation, rewards maximization, credit building, or comprehensive financial management. While traditional banks offer business credit cards with varying features and fees, fintech platforms like Venn provide cards plus full business banking without incorporation requirements or credit checks.

What Makes Sole Proprietorship Credit Cards Different

Sole proprietors face unique credit card challenges compared to incorporated businesses. Without the legal separation of a corporation, your business finances remain tied to your personal identity.

Credit decisions rely entirely on your personal credit score, not business credit history. Banks evaluate you as an individual, not as a business entity. This personal guarantee requirement means you're personally liable for all business card debt.

Many "business" cards still report to personal credit bureaus, potentially affecting your personal credit utilization ratio. This dual reporting can limit your access to personal credit while providing minimal business credit building benefits.

Higher credit limits typically require incorporation or substantial personal assets. Banks view sole proprietorships as higher risk, resulting in conservative credit limits that may not support business growth.

Despite these challenges, separating business expenses remains crucial for tax deductions, financial clarity, and professional credibility. Many sole proprietors default to using personal cards, creating accounting nightmares during tax season and missing out on business-specific rewards and features.

Quick Comparison: Best Cards and Platforms for Sole Proprietors in Canada

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Best Credit Cards and Platforms for Sole Proprietors in Canada

1. Venn Corporate Card + Business Banking Platform

Best for: Sole proprietors who want more than just a card, complete business financial management without incorporation requirements.

Venn isn't a traditional credit card but a comprehensive business finance platform that includes corporate cards, multi-currency accounts, invoicing, and expense management built specifically for modern Canadian businesses including sole proprietors.

Key Features:

• No incorporation required, sole proprietors fully supported

• 1% unlimited cashback on all card spend, no minimums

• Multi-currency card that automatically pays from the currency you're spending in

• CAD, USD, GBP, and EUR accounts included. 2% interest on all CAD/USD balances.

• 0.25% FX rates, lowest in Canada

• Free unlimited Interac e-Transfers®

• Built-in invoicing and expense tracking with OCR receipt capture

• Two-way sync with QuickBooks and Xero

• No personal credit check required

• Pricing per account, not per card ($0-$99/month depending on plan)

Unlike traditional credit cards that only solve expense separation, Venn provides the full financial infrastructure sole proprietors need. This includes real local Canadian and US account details (with ACH capability), automated accounting, and the ability to invoice clients and pay vendors from the same platform. Your funds are covered under CDIC insurance protection, providing peace of mind for your business finances.

2. American Express Business Edge Card

Best for: Established sole proprietors with strong personal credit who want premium rewards.

Amex Business Edge offers strong rewards with 2x points on select business categories and is available to sole proprietors with good personal credit. The card requires a personal guarantee and carries a $99 annual fee. Rewards are points-based rather than cashback, requiring redemption management.

Acceptance can be limited compared to Visa or Mastercard, particularly for smaller vendors. As a standalone credit card product, it lacks banking features or accounting integrations that modern businesses need.

Key Features:

• 2x points on eligible business purchases

• Personal guarantee required

• $99 annual fee

• Requires good personal credit score

• Points-based rewards system

3. CIBC Business Visa Cards

Best for: Sole proprietors who already bank with CIBC and want integrated credit.

CIBC offers several business Visa options for sole proprietors ranging from no-fee to premium travel cards. Approval depends on personal credit history, and rewards vary by card tier. The cards integrate with CIBC business banking accounts, providing some convenience for existing customers.

Standard bank FX fees of 2.5-3% apply on foreign transactions, making international purchases expensive. The platform lacks built-in expense management or accounting integrations beyond basic statement downloads.

Key Features:

• Multiple card tiers available

• No incorporation required

• Annual fees from $0 to $120

• Integration with CIBC accounts

• Personal credit check required

4. RBC Business Cash Back Mastercard

Best for: Sole proprietors seeking straightforward cashback with low fees.

RBC's entry-level business cashback card offers simple 1% cashback on all purchases with a $20 annual fee. Available to sole proprietors with a personal credit check, this basic card provides no advanced features or automation tools.

The card works best when paired with an RBC business account for integration. Standard bank FX markups of 2.5-3% apply on international transactions, adding significant costs for businesses with global suppliers or customers.

Key Features:

• 1% cashback on all purchases

• $20 annual fee

• Personal guarantee required

• Basic feature set, no automation

• Requires RBC business account for full benefits

5. TD Business Travel Visa Card

Best for: Sole proprietors who travel frequently for business.

TD's travel-focused business card offers travel rewards and insurance benefits for sole proprietors. The higher annual fee of $149 is justified by travel perks including insurance coverage. The card requires strong personal credit and uses a points system rather than cashback.

Travel insurance coverage provides value for frequent business travelers. However, the card offers no expense management features beyond basic statements, requiring separate tools for accounting and expense tracking.

Key Features:

• Travel rewards and insurance

• $149 annual fee

• Requires good personal credit

• Points-based system

• Travel-specific benefits

6. Scotiabank Business No-Fee Card

Best for: New sole proprietors testing business credit cards without commitment.

Scotiabank's no-fee option provides basic business expense separation with zero annual cost. Without any rewards program, the card serves purely as an expense separator. Approval requires a personal credit check despite the basic feature set.

Bare-bones features make it suitable only for very light business use. The card lacks integrations, automation, or any tools to help manage business finances beyond separating transactions.

Key Features:

• $0 annual fee

• No rewards or cashback

• Basic expense separation

• Personal credit check required

• Minimal features

How to Choose the Best Credit Card for Your Sole Proprietorship

The right choice depends on your business stage, spending patterns, and whether you need just a card or complete financial infrastructure.

Traditional credit cards work for simple expense tracking, but growing sole proprietorships often need more. Modern platforms combine cards with banking, invoicing, and automation tools, eliminating the need for multiple services and reducing overall costs.

Consider these key factors:

• Do you need just expense separation or full business banking?

• What's your monthly business spending and in which categories?

• Do you make international purchases or payments?

• Do you need multiple cards for contractors or team members?

• How important is accounting automation and integration?

• What's your personal credit score?

• Are you willing to pay annual fees for better rewards?

Traditional credit cards solve one problem: expense separation. Platforms like Venn solve multiple problems simultaneously, offering cards, banking, invoicing, foreign exchange, and automation in one solution. For growing sole proprietorships, this integrated approach often proves more cost-effective than piecing together multiple services.

Why Venn Is the Best Solution for Canadian Sole Proprietors

While traditional business credit cards work for simple expense tracking, Venn was built for sole proprietors who want to run their business more efficiently without the limitations of legacy banking.

Venn stands apart by removing common barriers sole proprietors face. No incorporation requirements or personal credit checks make it accessible to new businesses. The platform combines everything you need: corporate cards, multi-currency accounts, invoicing, and automated accounting in one integrated solution.

What sets Venn apart:

• No incorporation required and no personal credit checks, making it accessible to new sole proprietors

• 1% unlimited cashback with no spending minimums, better than most business credit cards

• Real local CAD and USD accounts with the ability to send and receive ACH, eliminating cross-border fees

• Multi-currency card that automatically uses the right currency, saving on FX fees

• 0.25% FX rates compared to 2.5-3% at traditional banks

• Built-in invoicing so you can bill clients and receive payments directly

• Automated expense tracking with OCR receipt capture and QuickBooks/Xero sync

• Free unlimited Interac e-Transfers® (only fintech in Canada offering this)

• Pricing per account, not per card or user, making it scalable as you grow

Venn eliminates the need for multiple tools by combining everything into one platform designed specifically for how modern Canadian businesses operate. Instead of juggling a separate bank account, credit card, invoicing software, and expense tracker, you get comprehensive financial infrastructure that grows with your business.

Conclusion: The Right Card Grows With Your Business

Sole proprietors no longer need to settle for basic credit cards with limited features and high fees. Whether you choose a traditional business credit card from a Big 5 bank or a modern platform like Venn, the key is separating business and personal expenses while maximizing rewards and minimizing costs.

For sole proprietors who want more than expense separation, Venn provides the clear advantage. With comprehensive banking, automated accounting, multi-currency support, and industry-leading cashback and FX rates, Venn delivers the complete financial foundation sole proprietors need to scale without the complexity or cost of traditional business banking.

Learn more about Venn

Frequently Asked Questions

Q: Can sole proprietors get business credit cards in Canada?

A: Yes, most Canadian banks and financial institutions offer business credit cards to sole proprietors. However, approval is typically based on your personal credit score since sole proprietorships are not separate legal entities. You'll need to provide a personal guarantee, and the card activity may be reported to personal credit bureaus.

Q: Do I need to be incorporated to get a business credit card?

A: No, incorporation is not required for most business credit cards in Canada. Banks and platforms like Venn accept sole proprietors, though you'll need to provide business registration documents or evidence of business activity. Venn specifically supports sole proprietorships without requiring incorporation.

Q: What's the difference between a business credit card and a corporate card for sole proprietors?

A: Business credit cards are traditional credit products that require personal guarantees and credit checks. Corporate cards (like Venn's) are charge cards linked to business accounts that don't require personal credit checks. Corporate cards often come with business banking features, while traditional credit cards are standalone products.

Q: Will a business credit card help build my business credit as a sole proprietor?

A: This depends on the card issuer. Many business credit cards for sole proprietors still report primarily to personal credit bureaus since your business is not a separate legal entity. Some issuers report to business credit bureaus, but this is less common for sole proprietorships than for incorporated businesses.

Q: What documents do I need to apply for a business credit card as a sole proprietor?

A: Typically, you'll need government-issued ID, proof of business registration or business name registration, Social Insurance Number (SIN), and evidence of business activity such as invoices or business bank statements. Requirements vary by provider, with fintech platforms like Venn often requiring less documentation than traditional banks.

Q: Can I use a personal credit card for business expenses instead?

A: While legally possible for sole proprietors, using personal cards for business creates accounting complexity, makes tax deductions harder to track, and mixes personal and business finances. A dedicated business card or platform simplifies bookkeeping and provides business-specific features like expense categorization and accounting integrations.

Q: What are the best rewards for sole proprietors: cashback or points?

A: Cashback is typically simpler and more flexible for sole proprietors since it provides direct value without redemption complexity. Points programs can offer higher value for specific uses (like travel) but require more management. For most sole proprietors focused on business operations rather than reward optimization, straightforward cashback is more practical.

Q: Does Venn require a personal credit check for sole proprietors?

A: No, Venn does not require personal credit checks for sole proprietors. The platform evaluates business activity and financial patterns rather than personal credit scores, making it accessible to new businesses or those with limited personal credit history.

Q: Can I get multiple cards for my sole proprietorship?

A: Yes, most providers allow multiple cards. Traditional banks may charge per additional card, while Venn's pricing is per account rather than per card or user, making it more cost-effective to issue multiple cards to contractors or team members as your sole proprietorship grows.

Venn Mastercard Charge Card is issued by Peoples Trust Company under licence from Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Based on internal analysis of FX markups charged by major Canadian financial institutions and fintech providers as of December 2024.

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**Disclaimer:** This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Venn Software Inc or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.