There Are Banks That Will Customize Business Credit Cards To Fit The Pattern Of Your Cash Flows

Category: Finance.

It may seem contradictory, but the use of business credit cards to pay everyday purchases of your business may actually help conserve cash or regulate cash outflows. The other benefit from good cash flow management is that it helps your maintain a surplus cash fund for your necessary capital investments for the future.

This is an underlying benefit banks and other financial institutions may have in mind when they offer business credit cards and other services that help manage business cash flow. This has been done widely for corporate business credit cards, and now business credit card issuers believe the same process can be followed for small businesses of appropriate size that need business credit cards. There are banks that will customize business credit cards to fit the pattern of your cash flows. For instance, by issuing business credit cards to key employees, you stand to gain more effective control of your cash expenses. You can eliminate missed payments and save on finance charges arising from late or missed payments if you arrange for a scheduled time to automatically make payment through your business credit card. The business credit card issuer can help set up this arrangement, and also assign a billing cycle that fits in with the cycles of your cash flow. This means you won' t need to write a check and fret about mailing it on time to your suppliers.

By paying bills and purchases with business credit cards, you enhance your ability to manage cash and to extend your cash reserve until the due date comes to pay your business credit card balance. In fact, by paying for the purchases you make with your business credit card, you stand to get discounts for prompt payment from the vendor and other benefits from the business credit card issuer too. When you or your employees travel within or outside of the country, you can pay your travel expenses through the business credit cards to accumulate rewards and bonus points. This saves you from disbursing the corresponding amount from your petty cash. Your business credit cards will also save you from the hassles of exchanging your dollars for local currency because you can simply use your business credit card to pay for other travel- related expenses. Your business credit card issuer will send you monthly statements of charges made to the business credit card account. The most helpful part is that you can access your account by logging on to the business credit card issuer's website to view the history of transactions on your account, which you can also download into your software.

You can use these statements to track your expenses and keep accurate records. This will make analysis of your costs much easier to do and will save you time in your budgeting. You should find out from your financial institutions about the business credit card programs they have for small businesses. These illustrations serve to show that business credit cards can help you in many areas of your business- in helping you follow up on sales opportunities and also in controlling cash expenses.