Using Credit Cards for Business Finance
An increasingly large number of businesses use their credit cards for business finance. This is usually for short term finance for products and invoices, but they are sometimes used for longer term financing.
Some entrepreneurs use their personal credit cards, while others use business credit cards.
Business credit cards are similar to personal credit cards, except that they sometimes charge a yearly fee and allow you to provide other employees with their own cards to pay for travel and expenses etc.
Many entrepreneurs could be paying over the odds however, as they may be using cards with uncompetitive rates; or are failing to pay them off and generating high interest levels.
What Can You Use Credit Card Finance For ?
Small Items – A credit card is extremely useful for small items and consumables that your business requires; you can make payments quickly and conveniently. A credit card is also ideal for internet purchases, as it affords you more protection in the event that what you ordered does not arrive.
Expenses – Credit cards are good for buying items that are considered expenses (e.g. Travel, food, accommodation, consumables, etc). Most cards are accepted all over the world, and you can order individual cards to give to trusted employees. Remember though to monitor expenses carefully and let employees know what acceptable expenses are!
Large Items – It is still useful to have a credit card for purchasing larger items such as computer equipment and office furniture, particularly if ordering online. You need to be sure of paying the card off however, otherwise the interest can build up quickly.
Working Capital – Some businesses use credit cards for working capital finance, but this is far from an ideal use; as interest will build up quickly, particularly if cash withdrawals have been made (these generally have higher interest rates than purchases).
Is my retail business eligible for Ashley Retail Finance?
You can get up to £25k from your future credit card sales. You can use the the cash for any business need whether that is working capital, opening additional locations, refurbishment of premises, equipment purchases, marketing and advertising, additional stock purchase, VAT, PAYE, rent, wages or any other business need you may have. Go this link to find out more
- Using Credit Cards for Business Finance
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