![]() ![]() Many business credit cards come with cash back and ‘pay back with points’ programs that can help you pay down your balance, cover regular business expenses and improve your cash flow. Set them up as pre-authorized payments and there’s one less item on your monthly to-do list. Consistently paying quickly can also help your vendor relationships – the good will you build up may let you negotiate better pricing or secure a rush job in the future.Ĭonsider too the ease in which you can cover recurring expenses – such as your phone and internet bills, insurance premiums, ongoing digital marketing costs and more. When you can pay with a credit card - rather than employing your staff or a bookkeeper to cut a cheque and drop it in the mail or in-person - you’re able to pay your vendors faster (and with that grace period you don’t need to wait to get paid before you settle up). It can help you manage both your personal and business credit, in that it can protect your personal credit when business is leaner, and help build your business credit history when you’re actively purchasing on and paying off your card. When you start to layer on business expenses, that credit card can become over-stretched, cutting into both your business and personal cash flow.Ī business credit card gives you an additional payment tool to leverage. You need your personal credit card for personal purchases. Imagine what you could do with up to 51 days before you have to pay your suppliers*! With a repayment period like this, a business credit card becomes a valuable tool to improve your cash flow. Gain More Time to Pay Suppliersīusiness credit cards typically come with a grace period of up to 21 days, meaning that you have that long between your purchase date and payment date. Here are five ways a credit card designed for business can work hard for you: 1. When used wisely, your credit card could help you run your business more smoothly by giving you additional flexibility over your cash flow – especially during stressful times. My brother got out right before I won the game.Īnd I had bought his dream just for kicks when I landed on it.Beyond being a convenient payment tool, your business credit card may be a great addition to your business’ toolkit. I had an issue with that before when I got out really early but couldn’t afford my ‘dream’ when I landed on it. He stayed in the ratrace a little longer since his buyout was going to be pretty low. I was more agrressive with my investments and had a group of houses, 8plexes, a software company, and some other things.Įnded getting out of the ratrace first with a buyout of 780k or so. They’re only worth it if you come across a really good deal and then probably only if you have a good chunk of the money already and just need some more. So in a year you have to pay $1200 for a $1000 loan. Note on bank loans: Bank loans cost 10% of each $1000 increment. So if a house with a 120% ROI came up, that would be a better use of your money. You can compare it to the deals you’re getting. The liabilities are also things you can pay off without drawing an opportunity card, so I would say the retail debt is probably a good thing to pay off early on. But I didn’t have any school loans as an airline pilot. So the retail debt had a higher ROI than the credit cards which was higher than the car loans which are probably higher than school loans. The credit card debt that I had in this game was 22k and I was paying $660/month ![]() Not the highest ROI in the game, but not too shabby. Paying the retail debt will save you $600 in a year for a cost of $1000 to pay it off.Ħ0% ROI is pretty decent. Other investments have much higher ROI’s. Some of the houses in the game return $100/month. So if you pay it off, you’re saving $50 each month. Essentially it does the same thing.įor a $1000 retail debt, you pay $50 each month. ![]() The liabilities also have an “ROI” but it’s money that reduces your expensive. In the game, you can buy a house or other investment and get a certain ROI on it. They are different, some are worth paying, others aren’t. The first game I played, I had basically ignored liabilities and their interest rates. I had no school loans and a pretty high salary, my expenses were also high. I played Cashflow 101 with my brother and his friend the other day. ![]()
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