Free Cash Flow

If your small business needs credit in this COVID-19 era and you are out of options, then perhaps a business credit card could be your business rescue. A credit card once used properly could be “free cash flow” and give you the breathing space you need for at least 30 days.

You could use it short term to manage your cash flow, for example, if your business credit card has an interest free period of say 30 days, (in some cases up to 60 days) then you can take advantage of this interest free period and move your business forward. You could pay suppliers, purchase stocks or raw materials for the business, pay taxes or bills, etc. preserve your cash in hand or await your sales.

You must of course pay the full balance as they become due to avoid interest and fees, therefore, it is important that you know the cut off and due dates. Once the balance is repaid, you can again make use of the interest free period and move your business even farther.

An added bonus (if your card has the feature) is that you could earn cashback for the business as a reward for following the rules. Another could be travel benefits, therefore, choose the card that fits your business needs and then review the costs vs the benefits. Is the high interest worth the benefits?  

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