Cash Flow and Beyond: Why Credit Cards Should Be The First Choice For Business Payments

U.S. Bank

If a company has been around awhile, there’s a good chance there are still some manual processes lingering. Businesses might still be writing checks, sending payments out via mail and juggling paper receipts—all steps that take extra time and can lead to extra expenses. Could using a credit card be a better choice? And is making the switch worth the effort?

For many businesses, the answer is emphatically “Yes.”

Money management: A key to successful business

Knowing how to best manage incoming and outgoing money is essential for any business. Many business owners have extensive expertise in their area of business, but not necessarily in the area of business finances. That’s why having a trusted banker makes sense. They can take a close look at a business and uncover specific ways to improve how owners can manage money. One recommendation that benefits nearly every business, however, is paying with credit cards. Here’s why.

Build efficiencies, reduce risks. Using a credit card consistently can speed up processes and help protect businesses from fraud, since checking account numbers aren’t shared with each payment. Credit cards also allow businesses to hold onto their money longer, improving cash flow.

Earn rewards. With every purchase made with a credit card, businesses can earn rewards—money that could be used to keep up with rising shipping costs, payroll or new equipment needed to grow the company. Yet while most businesses have a credit card on hand for large purchases, many don’t use it for everyday purchases. Why not earn rewards on those small expenses every month? In addition to other purchases that could be switched over to credit card payments, consider utilities such as electricity, phone, internet and water. Software and other subscriptions are also easy payments to transition. Check with vendors; business owners might be surprised how many are willing to accept credit card payments.

Build business credit. There’s a good chance that, to allow for business growth, owners may need to get a loan or line of credit in the future. If business owners aren’t using a business credit card, they may not have established any business credit, which is something they’ll need in the loan approval process. Look for a credit card that isn’t tied to personal credit but instead reports only to the business credit bureaus. This protects business owners by separating their personal finances from their business finances.

While most business owners understand the benefits of using credit cards, they sometimes put off moving away from old processes until their business has reached a point of change, such as when they’re selling the business or passing operations on to the next generation. By making the switch earlier, they could take advantage of the benefits themselves. Yes, updating payments does take some time, but in the long run the efficiencies of leaving manual processes behind make up for it.

Support at every step

Not sure if moving to credit card payments is the right choice? Ready to switch but need help throughout the process? U.S. Bank’s team of business banking experts can help. From initial analysis to ongoing consultation, their team offers a concierge service to help business owners  stay on top of money management best practices as their business evolves. To learn more about U.S. Bank services, visit

© 2023

This post is sponsored by U.S. Bank


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