Lack of cash flow is one of the first warning signs a business is in trouble. Without enough funds coming in to cover payroll, inventory, rent and other expenses, even a previously thriving company might soon be forced to close its doors. Many businesses in this situation simply can’t wait months for a fresh marketing push or new product launch to help turn things around. But a new or existing business credit card could provide financial relief.
Here's how to use a business credit card to help manage cash flow gaps.
Maximize Interest-Free Periods
A recently opened business credit card with an interest-free grace period provides a timeframe where no interest is charged on purchases. This promotion is usually marketed as 0% APR. During this grace period, which may last up to 12 months depending on the business credit card, allows you to partially fund your business with no added cost up to your business credit card credit limit. In addition, Business Cards also allow you to transact and not have to pay the balance until your payment date, for periods between 20 and 55 days, depending on when your statement closes and when the purchase is made. However, once those grace periods end, in both instances you’ll need to pay the balance in full by the due date to avoid interest charges, which are usually high.
By taking advantage of this interest-free period, you can effectively bridge the gap between when expenses are incurred and when customer payments are received.
Ask for a Credit Increase
Despite current cash flow concerns, revenue might have gone up since you first opened an existing credit card account. Contact the card issuer and request a higher credit limit based on those increased earnings. Higher limits can boost cash flow by allowing greater access to working capital through the credit card's revolving balance. In addition, obtaining a credit limit increase might in some instances help you increase your business credit score, due to your utilization rate. When your credit line is higher but your expenses remain the same, your utilization rate decreases, which is a factor that is taken into consideration when calculating your credit score.
Be ready to provide documentation reflecting your company’s financial strength and operational history.
Make Strategic Purchases
Using a business credit card lets you make large upfront inventory purchases, even if you don't have the full cash amount on hand. Instead of waiting months to buy needed inventory, pay for it using a business credit card and receive it right away. This might help your business keep up with customer demand. The card could also help you take advantage of limited time supplier discounts which could positively affect your bottom line.
In addition to better managing your inventory related costs, you can also use a business credit card to buy equipment, advertisement or incur in any other business related costs.
Capitalize on Cyclical Revenue
Consider using the card’s credit line to cover business expenses that occur at regular intervals, such as utilities or insurance premiums. This tactic lets you temporarily conserve cash flow by deferring payments until a later date when your financial situation has improved.
For example, if your business experiences a seasonal decline in revenue during the summer months, cover monthly utility bills with a credit card. Pay off the accumulated balance once your income rebounds in the fall.
Distribute Credit Cards to Employees
Many credit card companies let you issue cards to individual employees for work-related expenses. These cards allow businesses to monitor and regulate employee spending, preventing unauthorized or excessive purchases that can drain cash flow.
It can also serve as a centralized system for tracking and controlling expenses, ensuring that funds are used only for legitimate business purposes. This oversight helps mitigate cash flow problems that can arise from unexpected employee expense reimbursement requests.
Improve your financial situation with a business credit card. It could help resolve cash flow issues and make it easier to achieve your goals.
on Chase's secure site
Best for: All Around Business Card
The Ink Business Unlimited® Credit Card is a top choice in the business cards category for great reason. With this card, you’ll earn unlimited 1.5% cash back on every purchase made for your business and enjoy 0% Intro APR on Purchases for 12 months, 16.74% - 24.74% Variable APR thereafter.
Additionally, you’ll earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening. All of this comes with a $0 annual fee.
on Chase's secure site
Best for: Up to 5% Cash Back
The Ink Business Cash® Credit Card offers 0% Intro APR on Purchases for 12 months (16.74% - 24.74% Variable APR thereafter), the ability to earn $750 when you spend $6,000 on purchases in the first 3 months after account opening, and a $0 annual fee. However, it provides different options for earning cash back.
Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn. If your business spends a lot at office supply stores and on internet, cable, and phone services then this is the card for you.
on Revenued's secure site
Best For: Nontraditional Business Card
The Revenued Business Card is tailored for small to medium-sized enterprises, providing a suite of features designed to support business growth and financial management. One of its standout offerings is the flexible credit limit, determined by business revenue rather than personal credit scores, which makes it accessible to a wider range of businesses. The Revenued Business Card eliminates the burden of an annual fee, making it a smart choice for cost-conscious businesses.
Unlike many traditional business cards, the Revenued Business Card focuses on business performance and cash flow rather than relying heavily on personal credit history. This makes it a strong option for startups, growing businesses, or business owners working to build or improve their credit profile. With flexible spending power designed to adapt alongside business revenue, the card can help support everyday operating expenses while giving businesses access to ongoing purchasing flexibility.
on American Express' secure site
Terms Apply
Best For: Doubling Your Rewards Points
The big selling point with The Blue Business® Plus Credit Card from American Express, our partner, is that you can automatically earn 2X points on everyday business purchases such as office supplies or client dinners. 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter. Terms and limitations apply. Conveniently, if you have another American Express card, your Membership Rewards® points can be combined to easily redeem when you wish.
Like many American Express cards, this one has a nice welcome offer as well — approved cardmembers can earn 15,000 Membership Rewards® points after you spend $3,000 in eligible purchases on the Card within your first 3 months of Card Membership. While we’ve seen bigger offers for some business cards, keep in mind that this one carries no annual fee — a very important factor when adding up a business card’s benefits.
In addition to generous rewards, approved applicants will also get time — a whole year’s worth. The APR of 0% on purchases for 12 months from date of account opening then goes to 16.99% - 28.74% Variable APR.
As Seen In
Trust & Secure
