How Using a Business Card for Payments Can Help Your Business

Aug 12, 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.

Official application link: The Business Platinum Card from American Express UK – Earn 40,000 bonus Membership Rewards® points if you are approved and spend £6,000 in the first three months of Cardmembership

While we’ve written before about how the Business Platinum Card from American Express UK earns you valuable Membership Rewards points for every purchase that can be redeemed for fantastic value, especially for things we love like premium flights and luxury hotel stays, there’s plenty of other features of this product.

One lesser-known feature of the card that could be very valuable if you are a business operator is that it provides payment terms of up to 54 days. With monthly billing cycles, where a charge is made on the card on Day 1 of the cycle, you then have more than seven weeks before that charge is due for payment.

Small businesses have told TPG UK that cashflow can be a critical obstacle, especially those that are new, small and/or trying to grow quickly. Alternate short-term finance can be attained, though this may take time you don’t have to submit business plans and attend financing meetings. Even if approved, alternate finance could come with hefty interest rates and security required as collateral. Where a business has income tied up, there may be little free cashflow for everyday purchases required to keep the business running.

Photo by Josh Gribben / The Points Guy

If your company currently pays for these expenses by say, bank transfer, in cash or using a debit card, the cash will leave your business instantly. By using a card with up to 54 days payment terms, you have time before the balance is due. Plus, you’ll also earn valuable Membership Rewards points for these purchases which can be redeemed for all sorts of benefits. TPG UK think you can obtain far more value from these Membership Rewards points including off-setting your business travel costs than from the cashback offered by some other business card products.

The Business Platinum card from American Express UK does not have a credit limit, meaning you can put whatever expenses you like on the card – just remember that as it is a charge card, the entire balance must be repaid every month. You’ll need to plan your expenditure as best you can to ensure you can pay the balance in full – it’s a temporary cashflow solution each month, not a permanent one.

If you’re worried about ensuring your balance is paid each and every month you can setup direct debit payment even on the last of the 54 days cycle and you also have a dedicated Account Management Team available to assist with any billing concerns.

You can read our full review of The Business Card from American Express UK 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.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.