According to SME Association of Malaysia national VP Chin Chee Seong, more than 50,000 SMEs might entirely close down should these MCO 3.0 extended in another four weeks. Retail and food and beverages (F&B) are the most affected during these MCO and are just hanging at the edge of the cliff. He also mentioned that MCO 3.0 is tougher than the previous MCO 1.0 as many of these businesses do not simply have the reserves to withstand the loss in the business.
Cash flow management is the lifeblood of any business, as it determines the difference between success and failure. During these difficult circumstances, we all know that there might be a reduction in sales and payment. However, just because you haven’t collected your payment, that does not mean that you are away from the bill’s due dates. You must have enough cash to carry you through the lean months when the flow isn’t there
Credit card: The New Way to Finance Your Business
Credit cards can be a good tool to finance your business apart from applying for a regular loan. They make it simple to obtain a smaller amount of cash when you need it, allowing you to maintain a positive balance while you wait to be paid. If some of your clients are late with their payments, it can disrupt your business operations. That doesn’t have to be the case if you can use a credit card to cover the negative balance.
However, you need to bear in mind your ability to repay the money and keep your balance in check. Nonetheless, credit cards can provide you with a lot more in the way of floating resources especially during this MCO 3.0. With that in mind, you should not be afraid to rely on credit lines to supplement your cash flow. It might be the best option you have in many cases.
Understand How Credit Card Works for Your Business
When it comes to credit cards, it always sounds tempting. However, understanding how your credit card works are important. With a credit card lying in your wallet, you can easily cover cash flow gaps and pay off short-term business expenses, all without applying for a loan. This flexibility can be a huge plus for businesses with more sporadic revenue.
Make Your Payment Promptly
When it comes to using credit cards for business purposes, it’s critical to remember the importance of paying on time. Before you charge anything to your card, make sure you will be able to pay off the balance promptly. Otherwise, your company will quickly run into significant debt problems, which may be severe enough to shut down your entire operation.
Monitor Your Usage
You should also pay attention to your credit card usage habits and understand how your finances have shifted over time. You can monitor your usage by using various tracking software such as TouchStyle, MoneyLover, and many more that can help you get this job done with ease. Using tracking software can be useful as it helps you monitor your expenses. This data can help you make decisions as your business grows.
How jomSETTLE Can Help Finance Your Business
jomSETTLE helps your company pays your business expenses with credit card digitally, without the need for a credit card receiving terminal. Our platform aims to help your business better managing your company’s cash flow by allowing you to use your credit card to pay for company overhead expenditures. This way, your business can minimize cash flow gaps and keep running without disruption.
To help you understand better, we have provided a use case:
Sarah is a successful business owner who owns a Bakery Store. She has 1 employee working with her at the store. In 2 days, Sarah needs to pay her staff salary as well as her supplier. She has RM5,000 in hand but is contemplating whether to use her cash to make payment.
She decided to use her credit card and reserve the cash for daily business performance. She knew that her bakery business needs cash to operate smoothly. Hence, paying using her credit card solves the problem.
Sarah understands that she has to pay the amount of credit card borrowing in 30 days billing cycle. Thus, she has restructured and includes the interest fee charges as part of her business cost. Plus, it’s a bonus to Sarah as she has 30 days of cash float before she pays back the amount spent.
Manage your spending and be financially wise with jomSETTLE™. Sign up your account now!
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According to SME Association of Malaysia national VP Chin Chee Seong, more than 50,000 SMEs might entirely close down should these MCO3.0 extended in another four weeks. Retail and food and beverages (F&B) are the most affected during these MCO and are just hanging at the edge of the cliff. He also mentioned that MCO3.0 is tougher than the previous MCO1.0 as many of these businesses do not simply have the reserves to withstand the loss in the business.
Cash flow management is the lifeblood of any business, as it determines the difference between success and failure. During these difficult circumstances, we all know that there might be a reduction in sales and payment. However, just because you haven’t collected your payment, that does not mean that you are away from the bill’s due dates. You must have enough cash to carry you through the lean months when the flow isn’t there.
Credit card: The New Way to Finance Your Business
Credit cards can be a good tool to finance your business apart from applying for a regular loan. They make it simple to obtain a smaller amount of cash when you need it, allowing you to maintain a positive balance while you wait to be paid. If some of your clients are late with their payments, it can disrupt your business operations. That doesn’t have to be the case if you can use a credit card to cover the negative balance.
However, you need to bear in mind your ability to repay the money and keep your balance in check. Nonetheless, credit cards can provide you with a lot more in the way of floating resources especially during this MCO 3.0. With that in mind, you should not be afraid to rely on credit lines to supplement your cash flow. It might be the best option you have in many cases.
Understand How Credit Card Works for Your Business
When it comes to credit cards, it always sounds tempting. However, understanding how your credit card works are important. With a credit card lying in your wallet, you can easily cover cash flow gaps and pay off short-term business expenses, all without applying for a loan. This flexibility can be a huge plus for businesses with more sporadic revenue.
Make Your Payment Promptly
When it comes to using credit cards for business purposes, it’s critical to remember the importance of paying on time. Before you charge anything to your card, make sure you will be able to pay off the balance promptly. Otherwise, your company will quickly run into significant debt problems, which may be severe enough to shut down your entire operation
Monitor Your Usage
You should also pay attention to your credit card usage habits and understand how your finances have shifted over time. You can monitor your usage by using various tracking softwaresuch as TouchStyle, MoneyLover, and many more that can help you get this job done with ease. Using tracking software can be useful as it helps you monitor your expenses. This data can help you make decisions as your business grows.
How to jomSETTLE Can Help Finance Your Business
jomSETTLE helps your company pays your business expenses with credit card digitally, without the need for a credit card receiving terminal. Our platform aims to help your business better managing your company’s cash flow by allowing you to use your credit card to pay for company overhead expenditures. This way, your business can minimize cash flow gaps and keep running without disruption.
To help you understand better, we have provided a use case:
Sarah is a successful business owner who owns a Bakery Store. She has 1 employee working with her at the store. In 2 days, Sarah needs to pay her staff salary as well as her supplier. She has RM5,000 in hand but is contemplating whether to use her cash to make payment.
She decided to use her credit card and reserve the cash for daily business performance. She knew that her bakery business needs cash to operate smoothly. Hence, paying using her credit card solves the problem.
Sarah understands that she has to pay the amount of credit card borrowing in 30 days billing cycle. Thus, she has restructured and includes the interest fee charges as part of her business cost. Plus, it’s a bonus to Sarah as she has 30 days of cash float before she pays back the amount spent.
Manage your spending and be financially wise with jomSETTLE™. Sign up your account now!
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