One of the challenges of running a business is often tight cash flow. As business owners, there are bills to pay but sometimes the receivables to not get paid in a timely manner, which affects our ability to pay our bills on time. One way to help with cash flow, is the use of a credit card. By using a credit card , you can give your receivables more time to be paid and, if you pay the balance of within 30 days, there is normally no interest charged to the credit card account.
Other benefits of using credit cards:
- Opportunity to build credit. If the credit card is in the business name, you are building a credit history for your business
- Earn rewards such as cash back or miles: Almost all credit card providers offer cash back or points towards air miles or other benefits for using their credit card. These benefits could also be used to benefit your business.
- Increase purchasing power – There may be times where you need to buy more than what cash is available to you. Using a credit card can assist in making a more timely purchase.
- No monies come out of your checking or savings account when you use a credit card. This ties back to cash flow. By using a credit card, you are able to use the monies in your checking or savings account for other purposes.
A&A Employer Services offers our clients the opportunity to use a credit card to pay for their payroll invoice. While there is a 4%surcharge to use a credit card, there are still many other benefits of using a credit card that still make it worthwhile for the overall success of your business.
If you have more questions on how this can work for your business, please schedule a time to talk to our staff by clicking the calendar.