Cardup MY

4 benefits of using credit cards for your business payments

Written by The CardUp Team | Jul 23, 2024 6:45:25 AM

As a business owner, there are many verticals in the company that require your attention: operational efficiency, business growth, digital productivity – and ultimately, overall bottom line. With this set of responsibilities and undertaking, it also comes with its own set of challenges, such as balancing cash reserves, managing seasonal fluctuations, optimising working capital and pushing for company-wide digitisation.

The simplest solution to many of these challenges in fact lay in your pocket, in the form of a credit card. Most credit cards are often under-utilised. Your credit card can do wonders for your business. Here's how.

Through platforms such as CardUp, your business can make large business payments using a credit card, even in places where cards are not accepted — what this means is that your business makes a credit card payment, while your recipient receives it via bank transfer.

 

What payments can be made?

  • Supplier Invoices
  • Rent
  • Payroll

 

4 benefits of making business payments with credit cards

Here are some ways in which you can benefit by using CardUp for your business:

  1. Increased cash flow for optimised growth
  2. Minimised operational disruption during challenging times
  3. Digitisation and future proofing the company
  4. Improve working capital by collecting credit card payments

 

1. Increased cash flow

  • Instant access to credit
  • Better growth forecasting

With payment platforms such as CardUp, you may use your credit cards for day-to-day payments such as rent, payroll, supplier invoices, even if your recipient does not accept card payments. As a result of putting these expenses on a credit line, you free up cash on hand. Better yet, the recipient does not even need to have an account on the platform to receive this payment, making it a convenient and easy way for you to optimise your working capital.

Furthermore, if you pay off the credit card bill by your bill due date, you are essentially tapping on this credit at zero percent interest! You have additional cash on hand for strategic spend and other investments, and greater capacity to focus on growth strategies and efforts.

 

Value for your company:

  • Instant, hassle-free access to interest-free working capital
  • Cash on hand can be better utilised for mid to long-term growth strategies

 

2. Minimised operational disruption

  • Operational stability
  • Better defensibility

Leveraging on your credit card also helps you deal with volatile cash flow or overcome quieter periods if your business is dependent on seasonal revenue.

Reports suggest that over 84 percent of Malaysia-based SMEs do not qualify for business financing, and in such challenging times, companies also do not have the luxury of time to process most of these financing options as well.

 

Creates a great safety net for your business in these cases of emergencies. Since your credit cards come with ready-to-use credit, they are a fast and cost-effective way to access capital – now not only possible for smaller expenses, such as for dining, travel and entertainment, but larger expenses such as rent, supplier invoice, and more.

With CardUp, almost all business expenses can now be put on your credit card, allowing you to keep operations running even if you are facing a temporary snag.

 

Value for your company:

  • Reduce disruption to operations and keep the lights on, even in low season
  • Better defensibility against off-peak periods

 

3. Digitisation and future proofing the company

  • Improved productivity
  • Digital payments trail

Stop spending thousands of hours each year manually processing cash and cheque payments, maintaining daily transactions, recording and monitoring accounts payables and more. Save time, manpower and costs when you shift your time-consuming, manual processes onto a digital platform like CardUp. 

Your business can...

1. Schedule payments on your credit cards far in advance, or on a recurring schedule, and save countless hours each week.

2. Eliminate potential human errors in the issuance, reduce processing and reconciliation of payments, lower any chances of data errors and the costs that come with them.

3. Track and monitor all past and upcoming payments on the dashboard, and have a digital payments trail that improves the efficiency and transparency of your company processes.

 

Value for your company:

  • Numerous hours saved per week on menial tasks, improving productivity of employees and company
  • Improved payment processes with digital payments trail

 

4. Improved working capital by collecting credit card payments

  • Get paid faster
  • Save time and cost

In addition to paying for your business expenses, you can also collect credit card payments with CardUp. This lets your business accept card payments with no fees, technical setup or operational disruption. Your customers are also able to pay you with their credit cards anytime, anywhere with your customised payment page.

Your clients and customers can schedule a one-off or recurring payment so you get paid on time and you don’t have to worry about chasing overdue payments. The icing on the cake is that customers and clients can also avail benefits as mentioned above, including gaining rewards on existing credit cards for their payments to your business.

 

Value for your company:

  • Better cash flow management by getting paid faster and more on time
  • Hours saved chasing late or missed payments, as well as manually processing cash or cheque payments

 

 

Join thousands of businesses in powering their business payments with CardUp.

Sign up for your free business account here.