5 unexpected ways a business credit card can improve your business cash flow

Most business owners see credit cards mainly as a convenient way to pay or build credit. But a good business credit card can do a lot more for your cash flow than you might think. With some clever planning, it can help you smooth out expenses and even find hidden revenue opportunities. 

Here are  five ways your business credit card might be helping your cash flow more than you realise.

1. Use purchase timing as your secret cash flow weapon

Being able to essentially buy now and pay later can be incredibly helpful for your cash flow, in a way most businesses often don’t think about. Let’s say you have Funding Circle’s Cashback business credit card. You’ve got 42 days between using your card and actually clearing the balance.

If you’re a retailer gearing up for Christmas, rather than tying up your bank account buying stock in September, you could use your credit card instead. Sell through October and November, then use the sales revenue to clear your card balance. You’ve just funded your inventory without touching your working capital.

It’s a chance to manage your spending window more deliberately and gives you time to generate revenue before paying off your balance. The trick is to plan around your billing cycle rather than just spending because you can.

2. Keep suppliers happy while buying yourself time

Paying suppliers by credit card can help you extend your payment terms without causing friction. Your supplier gets paid straight away, and you get extra breathing space – often around a month – to settle the bill.

It’s an approach that can be especially useful if your suppliers offer discounts for paying early but your cash flow is temporarily stretched. You can take advantage of the discount without needing immediate cash to hand. Just remember to check if your supplier charges card processing fees to ensure the benefit outweighs any extra cost.

If you prefer even more flexibility, FlexiPay from Funding Circle can help. Make payments directly to suppliers (even those who don’t accept cards) by transferring funds straight to their account. You can then spread the repayments over 1, 3, 6, 9 or 12 months for a straightforward, transparent fee, without interest or hidden costs.

3. Make everyday spending work harder for you

Cashback might seem straightforward, but many businesses underestimate how quickly it adds up. With the Cashback business credit card, you’ll get 2% back on everything you buy for the first 6 months (up to £2,000), followed by an unlimited 1% cashback, which is automatically deducted from your next statement.

The goal is to pick a card that matches how your business really spends. Since ours earns cashback on everything from office supplies to travel costs, it’s a simple way to make your everyday purchases work harder.

4. Create an instant emergency fund

Think of your credit card as an emergency cash flow cushion that’s always there when you need it. No loan applications, no waiting around, but if an opportunity pops up or a client pays late, you’ve got immediate access to funds.

This is especially useful for those “what if” moments. What if a supplier offers that bulk discount we mentioned earlier, only it expires tomorrow? What if your biggest client’s payment is 2 weeks late? Your credit card keeps you moving while you sort things out.

Unlike fixed-term borrowing, a credit card gives you ongoing access to funds. You only pay for what you use, when you use it. Once you’ve paid it back, it’s available to use again.

5. Actually make your money management achievable

Something most people don’t realise is that credit cards can help make your cash flow easier to manage. By putting most of your expenses through one or two business cards, you’ll have a couple of predictable bills each month instead of money leaving your account at random times.

This makes forecasting simpler. You’ll see when money goes out and roughly how much. Your monthly statements also show exactly where your money’s going, helping you easily identify areas where you’re spending too much or could cut back.

It’s like having someone neatly organise your expenses each month, giving you more clarity and control.

Your cash flow doesn’t have to be complicated

Business credit cards can provide genuinely helpful cash flow when you know how to use them. From smart timing and supplier strategies to earning a bit extra and simplifying your finances, the right card can make managing your business money feel a lot less stressful. The goal is to pick a card that fits how you actually run your business and use these features on purpose.

Learn more about Funding Circle’s Cashback business credit card and FlexiPay.

While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.