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A business credit card is one of many ways to pay for goods and services. They offer plenty of advantages over cash or debit payments — including the ability to make large purchases without having to pay for them all at once. There’s the convenience factor of letting multiple employees make purchases with the same account. And there’s also the rewards and perks programs.
However, a small business credit card can also help you manage your company’s cash flow — especially if you use it as your company’s primary purchasing tool. When used correctly, credit cards can streamline your company’s spending practices. But, you’ll also need to track your cash flow to make sure your credit cards really work for your business.
Ways to use a business credit card successfully
When used effectively, business credit cards can provide interest-free financing, travel rewards or cash back, other perks and discounts on commonly purchased goods. They’re an easy way to give employees purchasing power and they come with reporting and fraud controls.
Using your business credit card for interest-free financing
Getting a loan to pay for a much-needed purchase can be a lengthy task for most entrepreneurs. And that’s not even delving into interest rates, which can leave a bitter taste in your mouth when you need to access financing. Spending on the business credit card you open, there’s an opportunity to use promotional interest periods to finance large purchases — all without having to pay a dime in interest.
If you and your business have an exemplary history with credit, you may qualify for a 0% introductory APR business credit card.
As long as your credit limit allows for it, take advantage of your introductory interest rate to make large purchases and pay them back over time without interest. You can also time your purchases to correspond with other perks, such as cashback or points if your credit card includes them.
Earning rewards by making business payments
Using your business credit card to pay vendors is a smart way to earn rewards and manage your cash flow better. Forwardly makes this easy by offering a pay-by-credit-card option, so you can pay your vendors and contractors without any extra fees. It lets you delay payments until the next billing cycle, giving you more time to hold onto your cash.
With Forwardly, you can also encourage your clients to pay their invoices with credit cards, making it convenient for them and ensuring you get paid faster. The platform works well with tools like QuickBooks Online and Xero, making it simple to track and manage your finances. By using Forwardly for your credit card payments, you can improve cash flow, earn rewards, and keep your business finances running smoothly.
Using a business credit card for employee purchases
A small business owner can’t be everywhere at once. This becomes painfully obvious when you’re tied up with other work but are the only person with the authority to make a last-minute purchase. Business credit cards are a solution that empowers employees while maintaining a comprehensive view of where the company’s money is going.
Most business credit cards provide account holders with additional employee cards free of charge and all transactions are recorded on the main account contact so that you can accurately track expenses. In a worst-case scenario, account holders can also close accounts or deny purchases to prevent fraud and control costs.
Making the most of introductory offers
Many business credit cards offer a special deal where you won’t be charged any interest on purchases for a certain period, usually between 6 to 18 months. This is more like a free loan for your business expenses during that time. It’s perfect for buying big things like equipment or stocking up on supplies without worrying about paying extra in interest.
To use this wisely, plan your purchases carefully. Figure out how much you need to pay each month to clear the balance before the interest-free period ends. This helps you avoid extra costs and keeps your cash flow in good shape by spreading out payments. Just keep an eye on the details, like any fees or rules about how you can use the offer. Using these offers smartly can give your business a financial boost without the usual costs of borrowing money.
Simplify business payments with Forwardly
If you’re ready to make the most of your business credit card and improve how you handle business payments, consider using Forwardly. It helps you manage your business payments smoothly and keep track of where your money is going. Start now to simplify your financial management and plan better for your business’s future. Get started with Forwardly today at no monthly cost to start maximizing the benefits of your credit card and managing your business finances more effectively.
If you want to make handling your business credit card payments easier, Forwardly can help. It streamlines your bills, invoices. Using Forwardly means you can manage your cash flow better and plan for your business.
Not just this but when you offer your clients the option to pay by credit card through Forwardly, it improves your relationship with them. It shows you care about making payments simple and convenient for them. Start using Forwardly today for free and see how it can benefit your business and clients.
As we’ve seen, paying bills with a business credit card can have benefits, which is why it’s important to support your own business clients with flexible payment options. Sign up for Forwardly to allow your business clients to pay by credit card. Adding additional payment options shows you care about making payments simple and convenient for your clients. Start using Forwardly today for free and see how it can benefit your business and clients.
