Happy Tuesday! I hope that you're having a great start to your week!
Business Credit - Save for Reference
A couple of weeks ago we travelled to a business conference called Invest Fest with over 20,000+ attendees, focusing on financial literacy, entrepreneurship, business growth and more. As I was traveling back, I realized that I could use our company’s travel as an example of the different areas that we not only manage in our business but help other businesses with too.
Let’s starts with how I booked the trip in the first place and this revolves around business credit. We booked the travel using a rewards business credit card. There were several reasons that we did this.
1) The main reason is to continue to grow our business credit. Initially, it was a great way to establish credit. We continue to use it to grow our business credit, increasing the strength of our credit. This can mean higher credit card limit offers in the future and loan offers to use for working capital or other business expansion areas.
In a future email we’ll talk about taxes and payroll which is another way that we’re able to receive loan offers without asking for them or actively seeking them out. Just through the natural operations of our business, these offers come to us.
2) The other reason to use a credit card is to accumulate rewards points to be used in the future for travel. You will just want to select a business rewards card and read the fine print to ensure it’s a good match for you and your business. Here are a couple that we’ve used and love from Amex (Click Links):
American Express Business Platinum Credit Card
American Express Business Plus Credit Card
Think about it, if you just use your checking account then that’s straight money out with no reward or benefit. Why not receive a benefit when you spend money not just on travel but all of your expenses.
How does it work? Instead of using your debit card for business expenses , use your credit card instead. Those dollars then turn into rewards points in 1x, 2x or more multiples. This means if you spend $1,000, you could then earn 2000 rewards points. These rewards points can then be used to book hotel rooms and airfare for personal travel in the future.
I like to transfer the points out to partners like Delta or Marriott. However you can keep the points in Amex and book directly on Amex travel for example. IMPORTANT - So that you don't accumulate credit card interest or debt, pay off your credit card bill before each billing cycle ends. We pay off immediately or within a couple of days of the expense, we don't wait. If you are to do this as well, it will mean your business has a healthy cashflow that's not reliant on credit. Rather your business can utilize it as a strategic growth tool.
In the next email, I’ll share with you how taxes and payroll impacted our trip to Invest Fest in a positive way. In the meantime you can connect with me for a class or a planning session here: Start with Six Figures
In our short credit class, we cover business credit in more depth including using apps like NAV and companies like Dunn & Bradstreet. I've also added an a la carte, 1 on one session for a special price of $199. Check it out.
If your business is further along in the journey and banking a few million+, you can also connect with us for a strategy session here:
Until next time, Win@Life,
(find me at thewaynewins.com)