Taking Advantage of Business Credit Card Balance Transfer Offers

When you get a business credit card, balance transfer offers can sound very appealing. If you use them correctly, these offers can really work to your advantage. However, if you do not handle them properly, they could come back to hurt you. Here are a few things to consider about taking advantage of business credit card balance transfer offers.

How They Work

Although every credit card company handles this type of offer in its way, the offers tend to have certain similarities. Most of the offers will provide you with a 0 percent introductory rate on all balance transfers that you make to their card. You will be able to take advantage of no interest for a certain amount of time. In most cases, they will give you at least one year to take advantage of these terms.

In order to utilize this program, you will have to complete a balance transfer from another credit card or account. You could potentially use the credit card number from your new card to pay off a balance, or you could have the credit card company take care of the transfer for you. Either way, the end result of the transaction will be that you transfer balances from your old card(s) to the new card.

Saving Money

When you take advantage of this type of deal, you could potentially save your business a lot of money. If you already have a business credit card, there is a good chance that you are paying very high rates of interest. In some cases, you might be paying as much as an APR of 25. If you have a large balance, this could add up to a substantial amount of money that you are paying to the credit card company in interest charges. If you were to transfer this balance over to a credit card that has no interest for the next 18 months, you would be saving a substantial amount of money.

Paying off Debt

Another advantage that could come of this type of program is an ability to pay off your debt quicker. In those cases, you will have 12 to 18 months to take advantage of not having an interest payment. The money that you would have been paying in interest can now go towards retiring the debt. With this strategy, you could potentially pay off the balance or pay it down significantly during this promotional period.

Investment

This type of offer can also provide you with the opportunity to invest money back into your business. Instead of paying extra money every month towards a high interest rate on a credit card, you can instead use this money to invest. You could potentially buy equipment or expand your business. There are also many other things that you could invest in with the money that you save. This will provide you with a way to earn money on the interest that you saved.