After these 10-day period, the billing due date arrives, which is the deadline stipulated in your Credit Card contract, to pay the balances recorded in the account statement. Thus, if you use the billing periods of your credit card correctly, you have approximately between 35 and 40 days (depending on the conditions of your bank) to make payments with your credit card without accruing interest. Therefore, you gain these 35-40 days of free financing time.
Planning, organizing and properly managing your finances will help you obtain interest-free financing by using a business checking account, thus saving time and covering unexpected expenses without affecting your cash flow. By separating your personal expenses from those of your company.
Always remember to keep in mind that all the movements you make with your current account can benefit or harm your financial history as an individual or your company.
There is still a high percentage of companies that use personal accounts to mobile number philippines manage their business transactions. According to the Association of Entrepreneurs of Chile , there are currently 900 thousand SMEs and only 651,271 have formalized the management of their income through a business checking account.
One of the main reasons for the failure of SMEs is the lack of knowledge and administrative rigor. Not having a business current account makes it difficult to separate business finances from personal income and expenses, being one of the factors that ends up directly affecting the company's cash flow.
A business checking account offers flexibility and efficiency when making purchases, helps you to properly manage your company's finances, and also offers financial support that can be used if necessary.
If you have a business and continue to manage income and expenses from one or more personal accounts, having a business checking account is an excellent alternative, which will not only help you simplify the general administration of your business, but will also help you facilitate the payment of your SME expenses, improving your cash flow and allowing you to build a credit history.
These are the benefits of having a business checking account.
1. Manage your business finances with accurate and easy-to-use tracking tools.
2. Separate personal income and expenses from those of your business.
3. Improve your cash flow since, if you do not have cash when paying a bill, you can pay it with your company credit card.
4. Build a credit history and payment behaviors that will allow you to request credit later from your bank.
5. Obtain financing without charging interest: When you have to make payments, but you have not yet received income from your clients, you can cover these expenses through the use of your company credit card. This way, you will avoid acquiring debts associated with interest by requesting external financing to solve these situations.
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