Business Credit Cards Can Make You Money
Below is a MRR and PLR article in category Finance -> subcategory Credit.
Business Credit Cards: A Smart Way to Earn Money
Summary
Small business owners are uniquely positioned to benefit from using credit cards. If managed wisely, a business credit card combined with a high-yield savings account can generate significant earnings, adding up to a few hundred dollars a month.
Types of Small Business Credit Cards
For new businesses, charge cards are often the easiest to acquire. American Express' OPEN network, for instance, offers a variety of options with significant benefits. These cards typically allow you to borrow interest-free, provided you pay the balance in full each month. This can be a smart financial strategy.
OPEN cards, like other American Express business cards, reward you with points for every dollar spent. Depending on how you redeem these points, they can translate to cash, gift certificates, or travel rewards. Each point generally equates to 0.5% to 1% of your purchases.
Maximizing Rewards and Savings
Consider a small business that spends $10,000 monthly. This spending would earn roughly $100 in rewards from American Express. By placing that $10,000 into a high-yield savings account with an interest rate of 4% or higher, you could earn over $30 in interest monthly. Altogether, this amounts to $130 a month from using your business credit card strategically, totaling more than $1,500 annually.
0% Interest Opportunities
Many small business credit cards offer a 0% introductory interest rate for up to six months. Spending $10,000 in the first month could yield $100 in rewards and around $200 in interest during the promo period. By paying off the balance when the 0% rate ends, your business can net $300.
Efficient Payment Strategies
Once the 0% APR period ends, use the "grace period," usually around 25 days, to pay off new purchases without incurring interest. Treating the card like a charge card ensures you benefit from rewards and can continue earning interest on your expenditures.
Yearly Impact
A business using an American Express OPEN card and spending $10,000 monthly could earn around $1,200 in rewards and over $400 in interest annually. This adds more than $1,600 to your company's cash flow, which could offset travel expenses, equipment purchases, or bolster liquidity.
Strategic Use
Choosing the right small business credit card can significantly enhance your company's finances. It's crucial to carefully review interest rates, rewards types, and terms to select the best option. As a satisfied American Express OPEN Gold and Platinum cardholder for nearly two years, my experience has been overwhelmingly positive.
Note: This article is reprinted with permission from Credit Card Depot Inc. Please include the author's bio and a live link to [Credit-Card-Depot.com](http://www.credit-card-depot.com) if republishing.
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