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Float is a no-monthly-fee Canadian corporate card that earns 1% cash back on monthly spend above $25,000, charges a low 0.25% FX rate on currency conversions, and pays top-tier interest (currently 3.5%, and it moves with the Bank of Canada) on funds held in your account. New customers currently get Float Professional free for 12 months through our partner link.
At a Glance
Float is the corporate card most Canadian small businesses can actually qualify for, because approval is based on your business bank balance rather than a personal credit check. The card itself carries no annual fee, FX is 0.25% rather than the 2.5% most Canadian banks add, cashback is 1% on all spend above $25,000 a month in each currency, and held balances earn top-tier interest, currently 3.5%. After spending time with the platform for this review, the parts that stand out are how quickly a team can issue virtual cards and how cleanly transactions sync into Xero or QuickBooks. New accounts also get the Float Professional plan free for 12 months through our partner link.
Float cards come in both secured and unsecured options to meet different business needs. The secured card is ideal for small businesses that may not qualify for traditional credit cards. On the other hand, the unsecured options provide flexible spending limits and can accommodate substantial monthly transactions.
In addition to cashback rewards, Float provides tools to simplify bookkeeping and integrate with various business management systems. This allows businesses to track spending efficiently and make informed financial decisions.
See the current Float deal for Canada: the Professional plan free for 12 months.
Want the side-by-side against the other Canadian options? Read our full Float review and scorecard, or compare it head to head in Float vs Ramp for Canadian businesses.
Key Takeaways
Overview of Float Credit Card
The Float credit card offers a range of benefits designed to support businesses, especially small and medium-sized enterprises.
Card Features:
Fees and Costs:
Advantages:
Welcome Offer:
These features make the Float card an appealing option for businesses looking for a flexible and cost-effective credit solution without the complications of traditional business credit cards.
Key Features
The Float credit card stands out for its comprehensive suite of tools designed to streamline business spending. It offers powerful expense management, robust spend management solutions, and seamless integrations with popular accounting software.
Virtual Cards and Physical Cards
Float provides both virtual and physical cards, tailored to meet different business needs. Virtual cards can be issued instantly and are ideal for online transactions or specific projects. They add an extra layer of security by minimizing the risk of misuse. Physical cards, meanwhile, are suitable for in-person transactions and travel expenses. Teams can easily manage these cards through a central platform, ensuring each employee has access to the funds they need.
Expense Management and Tracking
Float offers robust expense management and tracking features that help teams keep their spending in check. Their platform automates the tedious process of tracking receipts and expense reports. Real-time transaction data allows business owners to monitor expenses as they occur. Employees can upload receipts using a mobile app, ensuring that all expenses are documented and easy to review later. This feature minimizes errors and ensures accurate financial records.
Accounting Software Integration
Float integrates seamlessly with major accounting software like QuickBooks, Xero, and NetSuite. These integrations allow for automatic syncing of transactions, reducing the need for manual data entry. Businesses can streamline their bookkeeping processes, making it easier to reconcile expenses and prepare financial statements. The synergy between Float and accounting tools helps maintain precise and up-to-date financial records.
Spend Management Solutions
Float’s spend management solutions are designed to give businesses complete control over their spending. Users can set up custom spending limits for each card, ensuring that employee expenses stay within budget. These solutions also include real-time reporting, giving managers a clear view of where funds are going. The ability to customize spending parameters helps businesses manage their budgets more effectively and avoid unnecessary expenditures.
Approval Process and Workflows
Float's approval process and workflows automate the approval of expenses, ensuring they align with company policies before funds are released. Managers can set up multi-level approval systems, which add checks and balances to the expense process. This reduces the risk of unauthorized spending and ensures that all purchases are pre-approved, helping companies maintain control over their financial activities.
Benefits for Small Businesses
Float credit cards offer several advantages that help small businesses manage expenses efficiently, reduce administrative tasks, and boost savings through rewards.
Expense Automation and Simplification
Float credit cards make it easy for small businesses to track and manage their spending. They offer automated expense reporting and integration with accounting software. This means that businesses can save time on manual data entry and easily keep tabs on their expenses.
With Float, you can also set spending limits and automate approvals, giving you better control over your finances. This automation simplifies the entire expense process and reduces the likelihood of errors or overspending, making it easier for business owners to focus on growth.
Team Expense Management
Managing expenses for a team can be challenging, but Float cards streamline this process. Employees can be issued individual cards with predetermined spending limits, reducing the need for reimbursement requests and petty cash.
Float also provides real-time visibility into each employee's spending, ensuring that everyone stays within budget. This feature is particularly useful for small businesses that need to keep tight control over their finances while empowering their employees to make necessary purchases.
Cashback and Rewards
One standout benefit of using Float credit cards is the cash back and rewards program. Businesses can earn 1% cashback, but only on spend above $25,000 a month in each currency, so most small businesses will never trigger it. Float charges 0.25% on foreign-currency spend, well below the 2.5% most Canadian banks add, though it is not the zero-FX card it is sometimes described as, which matters for businesses that operate internationally.
Partner rewards are another attractive feature, giving businesses access to discounts and special offers from a variety of vendors. These rewards not only help save money but also provide added value through partnerships with well-known brands and service providers suitable for small business needs.
Pricing and Fees
Float credit cards come with various pricing plans, spending controls, and transaction fee structures. Understanding these aspects can help businesses make an informed decision about whether this card is the right fit for them.
Fee Structure
Float offers a free Essentials plan and a paid Professional plan at $10 per user per month, billed on active users and starting at $100 a month including the first ten users. Float pays 1% cashback on card spend above $25,000 per currency, and top-tier interest on idle balances, currently 3.5%, which moves with the Bank of Canada. Through our partner link, new Canadian businesses get the Professional plan free for 12 months (there is no coupon code to enter) if you use this link to sign up..
No foreign transaction fees applies to CAD and USD transactions, which can save money when dealing with international expenses.
Credit Limit and Spending Controls
The unsecured credit limit can go up to $3 million with 30-day terms.
Businesses can pay down balances automatically throughout the month. Spending controls allow users to streamline corporate spending, set spending limits, and monitor expenses.
This flexibility is particularly useful for businesses aiming for tight budget controls and expense tracking. The card's prepaid model ensures businesses won't exceed their budget.
Comparative Advantage
Float cards stand out due to their comprehensive features compared to traditional credit cards.
No foreign transaction fees and the generous credit limit are notable benefits. The 1% cashback on spending over $25,000 monthly can result in significant returns for high-spending businesses.
Additionally, businesses can easily integrate spending controls and monitor transactions, reducing administrative burden and potential financial mismanagement.
Integration with Business Tools
Float credit cards seamlessly integrate with essential business tools, streamlining expense management and accounting processes. This integration helps businesses stay organized and manage finances efficiently.
Accounting Platforms
Float credit cards support direct integration with popular accounting software, such as QuickBooks, Xero, and NetSuite. These integrations allow for automatic transaction imports, reducing manual data entry and the risk of errors.
QuickBooks users can benefit from real-time updates, ensuring that all transactions are always current. Xero integration helps with bank reconciliation and provides a clear financial overview. Meanwhile, NetSuite compatibility ensures that larger businesses can manage complex financial operations smoothly.
These accounting integrations not only save time but also enhance accuracy, making financial management more straightforward and less time-consuming.
Eligibility and Application
Float credit cards are designed for businesses and offer flexibility in spending while reducing fees. Here is a detailed look at the application process and what is needed for approval.
Application Process and Requirements
To apply for a Float credit card, businesses need to fill out a 5-minute online application. Applicants must provide basic information about their business, including the business bank account details. The application requires some specific documents:
Upon submitting the application, businesses can receive approval in as little as one business day. Once approved, companies need to fund the prepaid account from their business bank account. This funding model allows businesses to manage their spending according to their available funds.
Credit Assessment
Float credit cards do not require a length credit check, making them accessible to new or small businesses. Instead, the credit limit is determined by the funds available in the business bank account. The prepaid nature of the card reduces the need for extensive credit assessments.
There is no personal guarantee required, which is beneficial for business owners concerned about personal liability. Float's credit assessment focuses on the business's financial health rather than the owner's personal credit history. This approach allows more businesses to qualify for and make use of the card's benefits.
Support and Resources
Float credit card customers have access to a variety of support services and educational materials that cater to both technical and general queries. From direct customer service to extensive self-help resources, users can find assistance in many forms.
Customer Support Services
Float offers comprehensive customer support services that cater to different needs. Users can reach out via phone, email, and live chat for immediate assistance. Additionally, their mobile app provides a convenient platform to manage support tickets and track query resolutions.
Professional support is available for businesses that require in-depth help, particularly in dealing with their spend management software. This includes personalized assistance for setting up the Excel integration and other advanced features, ensuring smooth operations.
The company also sends SMS notifications for important updates, which helps users stay informed without constantly checking their email.
Educational Materials
Float provides a range of educational materials to help users get the most out of their credit card and spend management features. This includes tutorial videos, how-to guides, and FAQs available on their website and mobile app.
These materials cover a wide array of topics, such as setting up the card, using the spend management software, and integrating with other tools like Excel. They are designed to be user-friendly, ensuring that even those unfamiliar with such tools can easily understand and follow the instructions.
Additionally, there are regular webinars and online workshops hosted by experts to give users deeper insights into maximizing their credit card’s potential.
Plans and Customizations
Float Credit Card offers different plans and flexible options to match various business needs. This section highlights the available subscription options and customizable spending limits and permissions.
Subscription Options
Float offers three plans: Essentials, Professional and Enterprise. Essentials is free and suits small businesses or startups with fewer requirements. It covers up to twenty physical cards, credit limits up to $3M, and 0.25% FX.
Professional is $10 per user per month, billed on active users only, and starts at $100 a month including the first ten users. It adds multi-step approvals, spend policies and deeper accounting automation, and suits larger businesses that need more comprehensive control over their expenses. Both plans include a USD Smart Corporate Card, which allows businesses to handle transactions in USD without extra fees.
Customizable Limits and Permissions
Float Credit Card allows businesses to set specific spending and credit limits tailored to their requirements. Administrators can assign individual limits to employee cards, ensuring controlled spending. For example, a company can set a $500 spending limit for a junior employee and a $5,000 limit for a senior manager.
Permissions are also customizable, allowing administrators to restrict certain types of expenses or set approval protocols for larger purchases. This flexibility helps businesses to manage their budgets more effectively and prevent overspending. Additionally, the Float platform provides detailed reporting and tracking tools to keep an eye on all transactions and ensure compliance with company policies.
Security and Compliance
The Float credit card is designed with several security measures to protect user data. It complies with industry standards to ensure a secure and reliable experience for businesses.
Data Protection Measures
Float employs stringent data encryption methods to safeguard sensitive information.
Routine security audits are conducted to identify vulnerabilities and implement necessary updates. The card's prepaid model reduces risk by limiting the amount of stored funds, thus minimizing potential loss.
Compliance Standards
Float adheres to several industry-accepted compliance standards to protect both the company and its users.
Regular training is provided to employees on compliance practices, ensuring they're well-versed in maintaining the highest standards. Additionally, Float undergoes frequent third-party audits to ensure ongoing compliance with evolving regulations.
Company and Industry Standing
Float, a Toronto-based fintech company, has carved out a niche in the Canadian business credit card industry by offering unique features tailored to businesses. They provide both CAD and USD cards without foreign exchange fees, setting them apart from traditional credit card companies.
Float's Market Position
Float is a relatively new entrant in the business credit card market, yet it has quickly gained attention. The company provides a combination of corporate cards and prepaid models, designed to streamline business finances. This approach allows businesses to manage expenses more efficiently, reducing the complexities often associated with traditional business credit cards.
Float's registration as a Money Services Business with FINTRAC ensures it is compliant with Canadian regulatory standards, bolstering its credibility. The company has fostered trust by partnering with Peoples Trust Company and Thread Bank to issue its cards, ensuring they are secure and reliable.
Competitor Comparison
When compared to more traditional business credit cards, Float offers some distinct advantages. For example, they do not charge foreign transaction fees on USD and CAD cards, which can be significant for companies dealing in multiple currencies. Additionally, the cards earn top-tier interest on balances (currently 3.5%), a feature not commonly found in competitors' offerings.
Traditional credit card options from companies like TD and Scotiabank may provide rewards and points systems, but they often come with higher fees and more complex structures. Unlike some competitors, Float simplifies the application and funding process, appealing to startups and small businesses looking for straightforward financial solutions.
In essence, Float's innovative approach, combined with its no-fee structure and regulatory compliance, position it as a strong alternative to traditional corporate card providers in Canada.
Frequently Asked Questions
This section covers key topics about how the Float credit card works, requirements, fees, activation processes, and alternatives.
How does the Float credit card operate?
Float runs two funding models. Float Charge extends unsecured credit, up to $3 million subject to eligibility, repaid in full on a 15 or 30-day interest-free cycle. Alternatively you can pre-fund the account and earn interest on the balance while you spend it. It functions like a credit card but draws from the preloaded funds. This mechanism ensures controlled spending and helps manage business expenses efficiently.
Are there any credit checks required for the Float card?
No. Float states there is no credit check and no personal guarantee, and this holds for the credit product as well as the pre-funded one. Charge limits are set on business fundamentals such as revenue, cash balance, liquidity and existing debt rather than the owner personal credit historation process.
What are the associated fees with using a Float card?
Float offers a free Essentials plan with no monthly fee. The paid Professional plan is $10 per user per month, billed on active users and starting at $100 a month including the first ten users, and adds approval workflows and advanced controls. Float charges 0.25% on foreign-currency card spend, which is well below the 2.5% most Canadian banks add, and other charges could apply depending on usage.
What is the annual percentage rate (APR) on balances with Float card?
Float cards do not carry an APR because Float Charge is a charge product rather than a revolving credit card: the balance is repaid in full at the end of each 15 or 30-day cycle and the terms are interest-free, so no interest accrues. If you pre-fund instead, there is nothing to repay at all. Cardholders spend only what is available.
How can I activate my Float card?
To activate your Float card, submit a quick application and connect your business bank account. Once funds are added, the card is ready for use. Activation typically completes within one business day after submitting your application.
What are some alternatives to the Float card currently available?
Some alternatives to the Float card include the Caary Business Mastercard and traditional corporate credit cards. These options offer various features, fees, and rewards programs that might suit different business needs.
Sebastien ProstCPA, Ex-CRA
Licensed CPA with 10+ years of experience, including work with the Canada Revenue Agency. Founder of LedgerLogic, a cloud accounting firm serving Canadian SMEs. Xero Certified Advisor.
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