Quebec Small Business: National Bank Account, Card and Line of Credit
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To start a small business in Quebec with National Bank, three products do the job: a business account, a business credit card and a line of credit. The Digital Package costs $7 a month, and $0 if you hold the National Bank Business Platinum Mastercard®. You keep your finances separate from the very first invoice.
Our take: for most new businesses, the Digital Package and Business Platinum pairing is the best starting point. The account becomes free, your spending earns 1.5 points per dollar with no cap, and your business trips are covered by the card's travel insurance.
Why separate your finances from day one
A business bank account gives you a clean statement that your accountant reads in minutes rather than hours. You also spot your deductible expenses more easily, such as the annual fee on a business card.
This separation also prepares you for the GST and QST. According to Revenu Québec, you stop being a small supplier once your taxable supplies exceed $30,000 in a calendar quarter or over the four preceding quarters. With a separate account, you track this threshold without digging through your personal statements.
The legal steps, such as choosing your business structure, are covered in our guide below. Here, we focus on the banking setup.
National Bank business account: 3 packages
National Bank offers three business banking packages. For most new businesses, the Digital Package is enough, because your digital transactions are unlimited.
| Package | Monthly fee | With the Business Platinum | What's included |
|---|---|---|---|
| Digital | $7 | $0 | Unlimited digital transactions, 12 Interac e-Transfers, unlimited cheque deposits (ABM, mobile, scanner) |
| Hybrid | $10 | $10 | 10 digital or assisted transactions, 2 Interac e-Transfers, unlimited cheque deposits (ABM, mobile, scanner) |
| Premium | $100 ($0 with a minimum daily balance of $80,000) | $80 | Unlimited digital transactions, 100 assisted transactions, unlimited Interac e-Transfers, $25,000 in bill deposits included |
Remember this detail: the Business Platinum lowers the fee on two packages.
- Digital Package: $0 a month instead of $7
- Premium Package: $80 a month instead of $100
Beyond your package, each assisted transaction (at the counter or by cheque) costs you $5. Each extra Interac e-Transfer® costs $1.50, plus transaction fees. If you pay your suppliers mostly by Interac e-Transfer, count your transfers before you choose.
Do you often buy from U.S. suppliers? National Bank also offers a business USD account, with no foreign exchange fees on your U.S. dollar transactions. You then pay fees based on your transactions, with a minimum of US$8 a month.
Business card: three Mastercards for three needs
For your business credit card, you can choose between three Mastercards. Each one covers a specific need: paying with no fee, earning points or financing your purchases.
- National Bank Business Mastercard®: no annual fee, for you and for your additional cards. A $30-a-year option lowers the rate to 14.5%, with a credit limit of at least $1,000.
- National Bank Business Platinum Mastercard®: 1.5 points per dollar with no cap, plus 1.5 extra points per dollar on eligible purchases through the À la carte Travel agency. You can also combine these points with those of your personal National Bank rewards card.
- National Bank Business Line Mastercard®: a rate set at prime plus 5%, or 9.45% with the 4.45% prime rate posted by National Bank, for financing from $1,000 to $10,000.
All three cards give you 21 days after the statement date to pay off your purchases interest-free. Click a card's name in the comparison below to see its full profile.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $125 | |||
| $0 | |||
| $50 |
Business Platinum insurance coverage
Of the three, only the Business Platinum includes travel and purchase insurance. When you travel for a client, you are covered for:
- Flight departure delay: up to $500 per person, after 4 hours
- Baggage theft or loss: up to $1,000 per person
- Baggage delay: up to $500 per person, after 6 hours
- Vehicle rental: up to 48 days, against collision, theft or damage
- Common carrier accident: up to $250,000
Your purchases also get 180 days of protection against theft or damage, and the manufacturer's warranty is tripled, up to two extra years. The card page links to National Bank's insurance certificate, which sets out the conditions for each coverage.
Line of credit: card or operating line
A small business line of credit helps you bridge the gap between your expenses and your clients' payments. National Bank offers you two forms.
- The Business Line Mastercard: up to $10,000, $50 a year, at prime plus 5%. It suits small amounts, such as buying equipment while you wait for an invoice to be paid.
- The operating line of credit: no minimum principal payment, repayment based on your cash inflows, and interest calculated daily from the prime rate. National Bank does not post this rate online: you get it from an advisor.
We recommend keeping the line of credit for cash-flow dips, and paying your rewards card in full every month. A balance carried at 20.99% quickly wipes out the value of your points.
Our recommendation for your profile
Here is how we would choose, based on how you pay:
- You pay your balance in full every month: the Business Platinum with the Digital Package: the account becomes free and your purchases earn points.
- You sometimes carry a balance: add the Business Line Mastercard, or ask for an operating line of credit if your needs exceed $10,000.
- You want no annual fee: the Business Mastercard, with the $30 reduced-rate option if you might carry a balance.
Bottom line: the trio for a new small business
For a new small business in Quebec, we pick the Digital Package and Business Platinum pairing: the account becomes free and your spending earns points from the first purchase. You then add the line of credit that matches your payment terms.
To follow our analysis and choose your newsletters, create your free member account.
Frequently Asked Questions
Which National Bank business account should you choose to start?
For most new businesses, the Digital Package is enough. It costs $7 a month and includes unlimited digital transactions, 12 Interac e-Transfers and unlimited cheque deposits by ABM, mobile or scanner. The Hybrid Package, at $10 a month, suits you better if you often visit a branch.
Is the Digital Package free with the Business Platinum card?
Yes. If you hold the National Bank Business Platinum Mastercard, the Digital Package drops from $7 to $0 a month. The card remains subject to National Bank's credit approval.
What is the difference between the Business Mastercard and the Business Platinum?
The Business Mastercard has no annual fee and earns no points. The Business Platinum costs $125 a year, earns 1.5 points per dollar with no cap and includes travel and purchase insurance. It also makes the Digital Package free.
How much does the Business Line Mastercard cost?
It costs $50 a year. Its rate is National Bank's prime rate plus 5%, or 9.45% with a 4.45% prime rate. Financing ranges from $1,000 to $10,000.
Do you need a line of credit from the start?
It is not mandatory. A line of credit becomes useful when your clients pay at 30 or 60 days and your expenses come due before their payments. Above $10,000, the operating line of credit replaces the Business Line Mastercard.
Is the annual fee on a business card tax-deductible?
National Bank states that the Business Platinum annual fee is tax-deductible. Your accountant confirms the exact treatment based on your business structure.
Can you combine points from business and personal cards?
Yes. National Bank lets you combine Business Platinum points with those of your personal National Bank rewards card. You then redeem them for travel, merchandise or account credits.
When do you need to register for the GST and QST?
According to Revenu Québec, you must register once your taxable supplies exceed $30,000 in a calendar quarter or over the four preceding quarters. Below that threshold, you can still register, which lets you recover the taxes paid on your business purchases.