Starting a business is overwhelming enough, but what about when it is time to grow? When you can no longer meet the demand of your customers you have to figure out a way to do so, and while this is a good problem to have, it costs money. Small business credit cards can be useful tools for growing a business if used wisely.
If you need inventory to meet demand, but do not have the cash on hand to purchase, a credit card can get it done. Not only that, but you can take advantage of discounts offered for buying in bulk or take advantage of sale prices when possible without having to wait on cash.
Often vendors will offer discounts for paying early or in full, and a credit card can allow you to take advantage of this. Doing so regularly can even allow for changes in the budget reflecting these discounts.
Spending some time on the front end researching rewards programs offered by small business credit cards can be of some benefit. The key is to take advantage of the rewards. Use cash back rewards toward the balance on the card, and use travel rewards for training or to go to shows and view new inventory possibilities.
Rules of Engagement
The rules of engagement for small business credit card use seem simple. In theory, you should pay them off in full each month. They should only be used to purchase items that could be paid with cash in the next cycle. Emergencies happen that require their use at other times, maybe for equipment repairs or replacement, but the balance should be paid off as quickly as possible. If the credit card is being used in lieu of cash that is not available for daily operations, there is a bigger issue that needs to be addressed.
Financing is just a part of being a small business owner. Whatever kind of financing you need, Biz2Credit can help. We have a network of lenders that offer all types of small business financing options. Visit Biz2Credit.com today to find out how we can best fit your needs.