0 APR Visa Cards Help Small Business

2007-11-09 05:11:17

( Financial )



One common difficulty among those who own small businesses is that working capital is often not enough to cover the requirements of the business. When cash flow is low, the problem can be relieved in the short term through the use of 0 apr Visa credit cards for small business.

Most credit card companies now offer 0 apr introductory rate card products to attract new customers. The zero apr Visa offering may be coupled rewards program or a cash rebate program. The small business owner who uses 0 apr Visa credit cards for small business will find benefits of good value to the business.

In financial terms, the 0 apr Visa means that the business owner can transfer old balances from other credit cards that already carry interest. The 0 apr rate card effectively gives the business owner an interest-free loan, which should save the business a significant amount in interest cost.

The 0 apr Visa will normally have an introductory period of twelve months within which all balances transferred plus all new purchases will enjoy the 0 rate card benefit. It is important, though, for the business owner to make sure that payment due on the card must be settled on schedule.

The other financial benefit of 0 apr Visa cards for small business is that there are substantial discounts, as much as five percent, for business-related purchases paid with the credit card. This can reduce working capital needs.

A non-monetary benefit with 0 apr Visa cards is that the small business will find it easier to reconcile business expenses. This benefit results from the monthly and annual summaries of expenses that credit card companies prepare for their customers. These summaries can even be viewed online and downloaded into the accounting software of the small business. This helps save on bookkeeping expenses and facilitates preparation of tax returns.


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