How to turn expenses into rewards
Imagine getting 2% of your expenses back in cash.
Or free business class travel for you, your employees and your friends and family - anytime you want.
By running your business expenses through an eligible business credit card to earn cash back or reward points.
How to Turn Expenses Into Rewards
Simply follow these steps:
- Find a corporate credit card with a good points offer
- Charge your eligible expenses to the credit card to earn points
- Pay the card balance in full every month to avoid any interest charges
- Convert your points into cashback, travel or rewards
The third point is VITALLY important.
You were going to pay the bill in full in 30-days anyway (assuming you have 30-day payment terms), so make sure you set a reminder each month to pay your credit card balance in full to make sure you’re not charged any interest.
Because credit cards provide a standard 30-day interest free period, you only pay your bill in 30-days at the same time as you would have paid your suppliers anyway.
So your cash position is no different.
In fact, you might actually pick up a 30-day interest free period for bills you have to pay immediately.
Why Everybody Wins
Here’s why everybody wins with this arrangement:
- Your vendors improve their cash flow because they are paid at the time of delivery, rather than having to wait 30-days.
- You get free travel and rewards spending to attend conferences, charitable events and reward staff. Or cash back in your pocket if you choose.
- Your cash position is unchanged (or better because you have 30-days to pay off your credit card charges).
I’ve heard that some businesses use their points card to purchase enough supplies to earn, on average, a free business class trip every month.
Even if you’re not at this scale, a 2% cashback program will improve cash flow by $2,000 per year for every $100,000 in eligible expenses. Not bad at all.
You are incurring the expenses anyway. Why not get some cash back or free travel for your efforts?
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