Do you need help managing your cash flow? If yes, you’re in the right place. If you’re wondering whether a business card can help manage your cash flow, the answer is a resounding yes. If your business card has flexible payment terms, it can be an efficient tool to help your business snowball. A business credit card is primarily a conventional payment tool; beyond this, it can be a great asset to your business strategy. If used well, your credit card could help manage your business smoothly by offering you extra flexibility over your cash flow. As the world is opening up after COVID-19, you will need to implement new strategies to make everything work. Below, we break down how a credit card can benefit your business.
Pay Bills Efficiently
If you can pay your bills using a credit card, you’re able to pay your vendors and suppliers faster. Many businesses employ a bookkeeper for the task above without realizing that it costs them more. According to a financial insight from https://www.nav.com/business-credit-cards/, using your credit card consistently improves your vendor relationships. Building up goodwill allows you to negotiate fair pricing. Additionally, this will help you to secure a rush job in future terms. It would be best if you considered the ease with which this allows you to pay your recurring expenses. Some of these expenses include insurance premiums, internet, and phone bills, among others. You can set these expenses as pre-authorized payments, which allows you flexibility.
Free Up Extra Cash Flow
As mentioned above, you can use your business card to cover petty expenses that you pay using a check or cash. This means you can exempt additional cash for costs that aren’t covered by your card. Additionally, using a business card helps extend your cash flow. If you have more money in your account daily, you’re well-equipped to cover any emergency costs and venture in other ways to grow your business.
If you’re deciding on the best business card solution that is good for you, it would be best to evaluate the standard payment terms on offer. Additionally, you should also consider if the card comes with the flexibility of a temporary limit. Some card companies allow you to make payments in installments on balance. If your venture is going through a growth period, this flexible repayment plan helps manage your cash flow since you’re investing more into your business. After each month, you can choose to pay the whole balance, which lowers your card’s interest. You could also choose to settle part of the balance and access your revolving line of credit.
Since we’ve covered an in-depth look at business cash flow, you can now work on improving it. The first step is to consider receivables. Ensure that you pay bills on time, preferably on the same day you’ve delivered your service or product. It would be best to refrain from delaying invoices until they can be written all at once.
Many financial experts recommend paying keen attention to cash flow management. The best way is to implement solid practices for payables and receivables. If you’re looking to grow your business or require help consolidating your supplier payments, a business card can be an excellent strategy to control your cash flow.