Using Business Credit Cards to grow your business

Can I grow my business by using Credit Cards as opposed to a loan?

With all the noisy hype relating to business credit cards and their flashy claims of business reward points and cash back which ones really make sense for my business? Check out Nerd Wallet for information on business credit cards.

What if, instead of getting a cash advance or traditional loan I could use my credit card for business purchases that help build my business?

In short, yes. Depending on your credit limit and what you choose to charge on your card, businesses can be built and expanded by utilizing credit cards. What you put on credit cards is probably the most important factor here. For example, purchasing new inventory on credit will only benefit you if you can make a margin on the new goods AFTER your credit carrying cost is calculated.  If, after all other business expenses and the cost of your credit balance you are able to make a healthy profit this option is viable.

What are some of the cheaper business credit cards?

There are introductory offers of 0% APR (Annual Percentage Rate) on purchases, which can help in your business cash flow.

The Chase Ink Business Credit Card is one of the best we’ve seen across the board. 5% cash back, 0% 12 month intro APR on new purchases and balance transfers and a 13.24% variable APR going forward.

SimplyCash from American Express APR rates range from 12.24% to 19.24% APR after an introductory 0% rate for the first 9 months.

Looking at these two examples, the APR may be cheaper than a cash advance, but you may need more working capital than what your credit card limit is so using a credit card instead of the cash from a fixed payment term loan is debatable depending on your business situation.