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Why you should pay your business bills with a credit card

Paying business bills online with a credit card

There’s nothing like the sweet sensation of freedom that comes from owning your own business and being your own boss. You know, waking up every morning to do what you love and be great at it, not to mention all the checks you get to write every time you need to pay your bills.

Wait, are you saying you don’t love writing checks? Well, that’s a real shocker because checks still account for 47% of all business-to-business (B2B) transactions. In fact, according to the Federal Reserve, U.S. businesses paid over $30 billion in checks every day, in the first half of 2021.

In our personal lives, we all know there are better ways to pay, and the last time you cut a personal check, you probably still thought of Zoom as a function on your camera. As a private consumer, you likely use credit cards for almost every expense, harvesting cashback and other card perks in the process. So, maybe it’s time you enjoyed the same benefits as a business.

It’s time for change 

We’ve got good news for you: there’s no reason for this payment method identity crisis. You can start paying most of your business bills with a credit card, even if your supplier only accepts checks. All you have to do is sign up for an online accounts payable (AP) tool like Melio.

When you set up a payment, you simply choose how you want to pay as well as how your vendor wants to get paid. If they prefer a check, we’ll just mail them one, regardless of what payment method you choose.

6 reasons to start paying business bills with a credit card today

#1 Improved cash flow

Maintaining cash flow health is essential for any business to thrive. For many small and medium-sized businesses (SMBs), this requires a delicate dance, balancing paying the bills on time to avoid repercussions and making sure there’s enough money left in the account to cover the rest of the expenses.

Paying with a credit card means your payment is sent to the vendor right away, while you get to hang on to the cash until your next billing cycle. This could mean up to 60 days of additional float to give you some well-needed breathing room. It’s almost like taking a short-term loan without having to apply, and it only costs you a nominal fee of 2.9% of your transaction.

#2 Card perks

As you step out of a store or a bank, you don’t typically leave money on the table. So, why choose to forgo the cash-equivalent card perks you can collect on business transactions?

Using a credit card means you can cash in on points, cashback, miles, and other card benefits on large expenses you usually pay with a check or a bank transfer.

#3 Convenience for both parties

Paying your vendors, suppliers, and contractors can be as fuss-free as shopping online when you use a digital accounts payable tool and choose a credit card as your payment method.

The best part is that nothing has to change for the payment recipient. If checks make more sense for their business, they’ll continue to receive them. We’ll handle the logistics, so you don’t have to worry about it, not to mention buy stamps and envelopes or make a trip to the post office.

#4 Safety

Digital AP services are encrypted and layered with state-of-the-art safety protocols. Unlike paying with a check or reading out your credit card details to someone over the phone, using these services means your payment cannot get lost or stolen on the way.

You also always have someone to turn to in the odd case something does go wrong with your payment.

#5 Speed

Credit card payments get processed a lot faster than checks or bank transfers. This makes them an excellent option for that one payment you completely forgot about, which is due in two days. Your vendor gets their money right away, and you still enjoy a grace period until your next billing cycle, ensuring this oversight doesn’t deplete your cash reserves.

#6 Early bird discounts

Many businesses, especially in the B2B realm, offer clients a special price to take care of the bill a little earlier. While that’s a great way to save on expenses, many SMBs don’t have enough cash flow to pay in advance.

Using a credit card to defer the payment by a few weeks could mean collecting these discounts while also improving your relationship with vendors and suppliers without draining your account.

Ready, set, go

You can start enjoying all of these benefits today by signing up to Melio and making your first credit card payment. Once you’re all set up, you can choose the payment method that’s right for you in every transaction, to maximize your cash flow and get all the discounts and perks that help your business thrive.

*This blog post is intended for informational purposes only and is not intended as financial advice.
**Melio does not provide legal, tax or accounting advice, and you should consult with a professional advisor before making any financial decisions.