Corporate Credit Card is an invention that gives you extended financial liquidity for 57 days, and is an alternative to the limit in your account. What does this mean in practice? This is the time when we can use the granted credit card limit with a deferred payment date without interest costs.
You must pay with a credit card – we do not incur additional costs when doing this. The cash transaction is not appreciated but it is not impossible to perform, unfortunately it involves costs – quite high: the ATM withdrawal costs about 2% of the amount of implementation and sometimes interest on the “borrowed” cash amount. The interest rate on credit card loans is 15 to 20 percent depending on the offer.
You should treat the payment of cash from your credit card as a failure to fail. Good advice – do not use like a debit card looking through the prism of cash withdrawal.
When examining the creditworthiness of the process of obtaining a limit on a credit card, simplified procedures are applied because the credit card is usually an addition to other products that the Entrepreneur possesses.
What the card gives us:
– grace period
– fast non-cash payment
– only a minimum of 5% loan repayment
– convenience regarding the extension of the time the customer settles the payment
– advantages of non-cash settlement with the card
– free transfer from the card
– membership in various loyalty programs
Observing the market and opinions of Investors I work with every day shows that ING credit card is the best one to use, because nothing is paid for its service if during the year transactions are made for a minimum of PLN 500 is not paying anything. An additional advantage is the availability of two billing cycles; you can also apply for an additional card eg for a partner; child’s area 13 years old, wife – husband.
An important additional addition is the ability to temporarily block the card – 30 days – after 30 days the card is automatically reserved. The card is a contactless card if you want.
What additional benefits / functionalities we may have / use in addition:
– 3D Secure service – Additional protection of payments on the Internet. In stores that support 3D Secure, transactions are confirmed by a one-time SMS code. You do not have to run anything extra. 3D Secure for our cards works automatically.
– Chargeback service – cash recovery (chargebacks) for services or purchases that will not be executed (eg goods not in accordance with the order, canceled concert).
To sum up: if the entrepreneur repays the loan on an interest-free basis, avoids ATMs and meets the requirements set by the bank in order to exempt the annual fee, it gains in principle a free source of short-term financing of current operations. Otherwise, costs associated with the card can be thrown into the costs of obtaining income.