A simple way to maximize your credit card to start or expand your business.
Photo by CardMapr.nl on Unsplash
Are you currently considering using a credit card to start or expand your business?
Did you know that there are a lot of conveniences you can get by using a credit card for business? For example, an emergency fund to cover unexpected expenses if you don't have any money left in savings. However, there are negative sides that you should pay attention to, such as interest which tends to fluctuate, depending on how you pay the credit card. Here's a simple way to maximize your credit card to run a business.
1. The first thing you need to remember is that not all types of businesses can be funded with credit cards. For example, a business where the return on capital is carried out over a long period. Why? Because you will only be busy paying it, when it is due, you will not have time to taste the sweet taste of the money from the sale. Credit cards are more suitable for funding businesses that have a fast return on capital, such as food franchises that never die or laundry by the kilo.
Did you know that there are a lot of conveniences you can get by using a credit card for business? For example, an emergency fund to cover unexpected expenses if you don't have any money left in savings. However, there are negative sides that you should pay attention to, such as interest which tends to fluctuate, depending on how you pay the credit card. Here's a simple way to maximize your credit card to run a business.
1. The first thing you need to remember is that not all types of businesses can be funded with credit cards. For example, a business where the return on capital is carried out over a long period. Why? Because you will only be busy paying it, when it is due, you will not have time to taste the sweet taste of the money from the sale. Credit cards are more suitable for funding businesses that have a fast return on capital, such as food franchises that never die or laundry by the kilo.
Photo by Guzmán Barquín on Unsplash
2. Pay attention to the working credit card system of the provider bank you choose. You must know in detail the policies implemented by the credit card provider bank. Starting from balance limits, maximum usage limits, payment due dates, payment deadlines to interest charged when making purchases by installments or cash withdrawals.
3. Try to pay bills before they are due, or no later than the due date. If used responsibly, credit cards can not only be used as a means of shopping (payment) for your business capital goods. However, if you don't use it well, a credit card will only cause you to get into debt. The longer you owe, the greater the interest the provider bank will charge you.
3. Try to pay bills before they are due, or no later than the due date. If used responsibly, credit cards can not only be used as a means of shopping (payment) for your business capital goods. However, if you don't use it well, a credit card will only cause you to get into debt. The longer you owe, the greater the interest the provider bank will charge you.