As a growing small business companies, most of them use Credit cards to launch the company as it require lot of investment or for investment as the credit cards are provided with 0% interest. Instead of taking credits from money lenders we can use credit cards as they are more liable and with no interest. But the issue is, we have to pay the amount on or before the due date provided at any cause.
Key points for small business credit card users
Keep an eye on due date:
Carefully keep in mind the due date of paying bills. If we miss this due date, we have to bare the interest and for some credit cards we have bare the fine of late paying also as the principal is also more. To avoid this we should keep an eye on the due date and should pay the due amount on or before this date to avoid any kind risks.
Deduct Tax amount:
As long as credit cards are used for business purposes, any interest paid can be deducted from your taxes and can also reduce income tax.
Try to pay monthly:
Hence make a habit of paying the bills monthly to avoid fines and interests. Monthly pay will also increase our reward points for which credit cards will offer more discounts of purchasing large number of products and large amount of transactions at a time.
Credit card is most efficient when compared to debit cards. The only disadvantage is we cannot cross the specified limit and should pay the bills on or before the specified date. Some people may also misuse credit cards for different purposes and finally they will be unable to pay their bills before the due date. In that case interest will add to the due amount and we will have to pay more amount. Whereas for debit cards we do not have any limit and risk environment is very less when compared to Credit cards.