Wednesday, January 6, 2021

How paying with a credit card helps small businesses

 




How paying with a credit card helps small businesses

For entrepreneur Winnie Sun, paying her contractors with a credit card is a no-brainer. “It’s all about the travel points!” says Sun, who runs a wealth management firm and media production company with under 20 employees.

The conundrum is while small businesses understand the benefits of sending payments via credit card, vendors may simply not have the technology in place to support B2B credit card payments, or might prefer payment methods such as checks or wire transfers to avoid paying fees.

 

Don’t Give Up Your Credit Card Benefits

Some of the perks of using credit cards include rewards, which in the form of points can be used by your business whether for travel, cash back, or to purchase equipment, which saves your company money.

 

Credit cards also offer fraud protection. According to a report by the Association for Financial Professionals, 71% of companies experience check fraud or attempted check fraud. Using a credit card to pay supplies offers an extra layer of protection.

 

Paying with credit cards can also serve as a loan. Because cash isn’t taken out of your account right away and you have some time to pay off your balance, your credit cards act as an extended line of credit. And of course, paying with a credit card enables you to control when cash leaves the bank.

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