Managing Your Business's Cash Flow: Credit Cards

Whether you're a new or experienced small business owner, cash flow challenges can happen at any time. With that in mind, how you manage your cash flow can help you through these inevitable times. In last month's issue of our three-part summer series, I talked about how an Operating Line of Credit can be an effective cash flow management tool in times of need, especially for businesses that experience seasonal or periodic variability in cash flow. This month, we'll talk about why credit cards are useful in helping to manage cash flow.

Credit cards can offer both value and convenience. It all comes down to two things:
  • Tracking and reporting: Credit cards allow you to set your spending limits to better control the money you do spend. And, though online banking, you can review your transactions regularly to ensure you stay on track (becoming your accountant's best friend while you're at it!).
  • Get rewarded for the money you spend: CUA's line of Business credit cards offers cards that can reward you for the money you spend through perks like cash back, travel rewards, and much more.
Choosing a card
When determining what card is right for your business, consider your needs and how you spend your money. For example, if your business credit card will likely carry a balance, then a low rate card is probably a best option. Moreover, if you're running a sole proprietorship and enjoy travelling, a travel rewards card could be ideal. Once you've narrowed down your card options, review the card details and take into account the annual fee and interest rate. Will the annual fee be within your yearly budget? Can you afford the interest rate, should you carry a balance? Understanding all of the details will help to ensure there aren't any unexpected surprises.

Consider how you'll use it
Once you have the right card for you, determine how you want to use it for your purchases. Will it be used for every purchase, or will you use a mix of cash and credit? Will every employee have access to the card, or just a select few? If you are planning on providing your employees with a credit card, we recommend putting spending controls in-place.

Ideally, you are paying the full card balance when it's due. If you need to carry a balance, we recommend having a plan to have the balance paid over a defined period of time. Considering your business's overall spending habits can help you determine a repayment plan. Continually track your receivables and payables, and keep in mind that the cost of your goods sold can fluctuate.

We're here for you
Our team understands that no two small buinesses operate the same way. We'll take the time to get to know your business to help determine the best ways to manage your cash flow in a cost-effective, efficient way. Our new range of business credit cards can help you in your cash flow management. And, keep in mind that our commercial team is always here to answer any questions you may have. Contact us about your business needs any time at or phone 902-492-6500 for more information.

Interested in learning more about how you can managed your business's cash flow? Explore how short-term deposits can help.

Revised Jul. 19, 2021

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Could your business use a new Credit Card?

CUA's line of business credit cards offers something for everyone. Discover the options here.