Business Credit Card

active80 · 14-05-08

Without being too nosey (i.e. - I'm not looking for specifics) - how many of you have a business credit card?

I've had issues with credit cards in the past, when I was younger ... issues I'm still paying for. However, I know it's considered a cashflow positive solution to many business problems ... so long as you are disciplined and pay your debt off within the interest free period.

All of this has come up because I've been pre-approved by my business bank ... and the only reason I'm considering it is because I'm NOT in any financial problems right now. Things are going very well and my projections are for them to continue getting better.

So, what is the general feeling on the use of credit cards (or overdrafts and other general lines of credit) within business? Is it a necessary evil if you want to grow?

paulw · 15-05-08

I use credit cards for all instore and online purchases.

I dont need a creit card at all and i never use the credit when i cant afford to pay it off.

I always pay it off before interest is charged (unless i forget) so its pretty much free.

The only reason i make a point of using it as much as possible is to build up my credit rating. If i ever need a loan in the future then i have a good background to help support that application.

Mooper · 15-05-08

Active80,
I would not consider a credit card to be a cash flow solution,
I do not use credit cards at all, however I do have a busess debit card (like a credit card but takes money out of your account). Personally I think it's great. Maybe you should look into one of those?

Orion Networks · 24-10-08

In my opinion it depends on the size of your business if a Credit Card can be a cash flow positive solution or not. I have used a Credit card for pretty much every business purchase for the last 3 or 4 years, except where i have an account with the supplier.

The biggest benefit that i have found in using the credit card is that in the majority of cases when clients purchase products from me they are buying and paying either that day or within a few days. Even if i buy with the minimum interest free days remaining i usually ahve about 20 dasy before i have to pay the credit card off. So it means i can make use of thast money if not buying other stock in a cash management account earning 6-7% interest (may drop soon though) on that money. Does not always make a huge difference, but a 10K over the period of a month can add some extra interest for the month.

chuckmanley83 · 17-02-09

I have a business card simply because I like to separate business and personal expenses.

1942 · 17-02-09

I would go for a debit card.

Manik · 25-02-09

A plastic card having a magnetic strip, issued by a bank or business authorizing the holder to buy goods or services on credit. Also called charge card.

exman3 · 23-04-09

within a few days. Even if i buy with the minimum interest free days remaining i usually ahve about 20 dasy before i have to pay the credit card off. So it means i can make use of thast money if not buying other stock in a cash management account earning 6-7% interest (may drop soon though) on that money. Does not always make a huge difference, but a 10K over the period of a month can add some extra interest for the month.