How small businesses can use credit cards for up to 56 days cashflow

Oct 19, 2019

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This story has been paid for by American Express, but the opinions are those of the author and TPG. This is one way TPG continues to provide our readers with free news and advice about travel.

American Express, together with British Airways have released a brand new credit card called the British Airways American Express Accelerating Business Card. This is the first credit card American Express UK has developed for businesses the can earn two different types of points currencies at the same time.

One of the lesser-known features of this card that may be very useful to small businesses is that it provides payment terms of up to 56 calendar days each and every month. With monthly billing cycles, where a charge is made on the card on Day 1 of the cycle, small business owners then have more than eight weeks before that charge is due for payment, without interest charges.

Small businesses owners that are new, small and/or trying to scale have told TPG UK that cashflow can be a tricky obstacle. While there may be other financing options to assist with their cashflow, application and approvals for this may take time business owners don’t have.

For example, if your business currently pays for most expenses by bank transfer, in cash or using a debit card, the cash will leave your business instantly. By using a card with up to 56 days interest free, you have some space before the balance must be paid. Plus, with this card, you can earn two different reward points currencies at once: Avios and On Business Points.

If you’re worried about ensuring your balance is paid each and every month, you can setup a direct debit and you also have a dedicated Servicing Team available to assist with any billing concerns. As all charges will be displayed in the one account, you can check your balance, payment due dates and all transactions easily at any time. You also have the choice to pay just the minimum balance each month as this is a credit card. However, interest will apply at the end of the monthly billing period. So for those big ticket business expenses you can choose to pay for the entire amount at the end of your statement month or spread it out over time.

The card currently comes with a welcome bonus of 2,200 On Business Points after spending £3,000 or more on purchases on the card within the first three months. Representative Example: APR 81.6% variable with an assumed credit limit of £1,200 and a purchase rate of 22.9% p.a. variable. There’s an annual fee of £210.

You can read our full review of the new British Airways American Express Accelerating Business Card here and apply for the card here.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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