If handled the right way, a credit card can be a significant tool to help a business owner manage their cash flow and even finance growth.For most business owners, getting a credit card is easier than getting a bank loan. Why? Because a bank reviews financial information, contracts, performs other due diligence, and requires collateral before issuing a loan. With less risk, it can then charge less interest.
“Despite what some may say, having a credit card is great way to help a business owner pay for very short-term purchases, get discounts, and even help to better manage cash,” said Adam Spooner, owner of, a business advisory firm based in Bethlehem. “However, it’s important that if you get a card, you get it for a reason, and have a plan for using it.”Spooner points out that credit cards are expensive only for those business owners who carry over a balance for a long period of time.
But other financial experts say that as a general rule of thumb, credit cards that offer “cash back” instead of points, miles, or other perks are usually better. Those “deals” are subject to the subjective calculation of the card issuer as opposed to a straight forward rebate based on a percentage of purchases.that offers a 5% rebate on all purchases made from the site, which, over time, can really add up,” Spooner said. “It’s a mathematical exercise.
“Most credit card issuers work seamlessly for overseas purchases and as long as you’re paying off the balance that month, you can save on fees,” he said. “Just make sure the exchange rate is reasonable.”