Make your Credit Card Work for your Business
The use of credit cards has brought forth stories of people getting into debt as it may have caused some people to feel a stronger purchasing power and think that they have extra money to spend. In reality, these credits have to be paid for come due date. On the other hand, credit cards can be an effective business tool by learning to manage them well. There are also many entrepreneurs who successfully use credit cards to bankroll their businesses. Here are some tips on how to maximize the benefits of using credit cards as an effective business tool:
-Pay the total amount due on or before the due date. The regular credit card allows a cardholder 3 payment options- pay the total amount due, pay the minimum amount due, or pay an amount more than the minimum amount due but less than the total amount due. In any case, you must make the payment on or before the due date stated in the statement of account for you to stay in good standing.
- Take advantage of 0% installment promotions. Most personal credit card issuers offer 0% installment promotions, allowing you to buy high-ticket items at select appliance and gadget stores at no interest and payable in 6, 9, or 12 months. Use this installment plan to acquire office or computers, cell phones, or other gadgets, and office furniture.
- You can use your credit card for operational expenses. You may use your credit card for operational expenses such as utilities, gasoline, representation, office supplies and vehicle repairs, as long as you are a diligent payer. Your credit card billing statement can then serve as a tool to analyze your expenses and cash flow requirements.
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