Getting 2% of your expenses back in cash.
Or free business class travel any time you want.
By running business expenses through credit card accounts 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 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 30-days 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).
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.
You are incurring the expenses anyway. Why not get some cash back for your efforts?
I hope you have had a fantastic week in business and in life. Now go keep doing the small things that add up to a big difference for you and your business.
But wait, before you go…
We all know that small business is about doing the little things right.
The little optimizations, the high-impact tweaks and the 1% gains you can make to your business to make it a little better, a little more profitable and even a little bit more pleasant to run.
I have interviewed 500+ business owners, surveyed thousands more, and I am always probing for their best tips, tricks and hacks to improve their business. There are three that stand out above the rest and I want to share them with you.
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