Is Credit Card Suitable for Small Business?

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  USER DC on 15/10/2022 - 01:20

  +2

  AS long as you dont create a problem with interest accruing on your purchases, its not really a bad idea. Can help you manage cashflow for 29-55 days

  • 

    bobbieb on 15/10/2022 - 08:06

    This.

    Credit cards are great for cashflow management.

    On the other hand, they are not magical. If you're already in financial difficulty, if there's a risk that you're not gonna be able to make the repayments, the additional credit card debt interest is just going to make things worse.

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  mrgeckoz on 15/10/2022 - 01:23

  I second USER DC, make sure you make the repayments on time to avoid unnecessary high interest rates. Otherwise it’s good use of the limit and gives more flexibility.

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  Neoika on 15/10/2022 - 08:00

  +1

  More credit card inquiry topics show that money is getting tight.

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  scotty on 15/10/2022 - 08:12

  +2

  I think OP is already spending $50k on the debit card, that means he has no problem paying that off. I guess the question is — is there a small business credit card that has minimum cost + other benefits like insurance, reward points, etc. AmEx has some if the places you spend money on can take AmEx.

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  Overclocked91 on 15/10/2022 - 08:58

  I use all of my business expenses through my credit card. Excellent return with points etc. and can buy gift cards or cash back. But, goes with the usual don't spend what you can't settle.

  • 

    JengT89 on 07/02/2023 - 10:36

    I assume you are director? How do you deal with FBT? Are you getting quite a few points with your spend?

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  payless69 on 15/10/2022 - 09:08

  After years of Amex failures and even larger Suncorp failures, Westpac arrogance, Combank came to the rescue. Not perfect but still less faulty than others.

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  ddhar on 15/10/2022 - 14:43

  Also take into consideration any credit card surcharge your vendors may add on. Ideally they should be lower than the value of points earned.

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  babylu66 on 15/10/2022 - 20:46

  Thanks guys! Sorry I am a total newbie, do you get rewards or points on transactions? I mainly do bank transfers these days.

  Thanks!

  • 

    daft009 on 16/10/2022 - 02:24

    +1

    Hell yes! That's a lot of points down the drain every month

    Worth switching to a card especially if you fly and like the pointy end

    Check which suppliers take card and what surcharge they charge for Amex or MC/Visa

  • 

    ddhar on 17/10/2022 - 06:02

    +1

    Generally cards with annual fees will credit you reward points on transactions.

    Many personal cards (typically Mastercard and Visa) have a spend cap, beyond which you don't earn any more points. Hence for your business spends, you want a card without such caps.