Disadvantages of Credit Card Finance 

Cost – Most credit cards have relatively high rates of interest compared to loans and other finance; this means that if you allow interest to accrue the cost of using credit cards can be very high.

Expenses Control – If you give a credit card to an employee, they are able to pay for expenses and other costs instantly. Whereas if they had to pay cash you could ensure that they do not get their money back for items you consider not to be expenses.

 
Credit Card Finance Tips 

Payback Quickly – The quicker you pay back your balance, the cheaper a credit card will be for your business. Paying only the minimum payment will mean paying large amounts of interest, and mean a much longer repayment time.

Find The Right Deal – There are many different credit card deals out there, and depending on how you expect to use your card, some will be more suitable than others.

Charge Cards – A useful alternative to credit cards are charge cards. These work slightly differently, in that you still get a number of day’s free credit, but must pay off the full amount each month. These help to ensure you do not get into the habit of paying less than the full amount each month and end up paying lots of interest.

For more information on Charge Cards we recommend looking at the American Express Platinum Charge Card.

Article Index:
1. Using Credit Cards for Business Finance
2. Credit Card Finance - Advantages, Disadvantages and Tips