Thinking Money | Free Financial Advice and Tips

Will Small Irish Businesses find Security in Credit Cards?

Posted on 28. Apr, 2009 in Credit cards, Loans and debts

Business Credit Cards used to Correct Cashflow

Thinking Money announces the increased likelihood of Irish businesses using credit cards to come to terms with their short-term finances. The so called ‘credit crunch’ could indeed be the main cause of such business credit decisions. The use of business credit cards, Thinking Money believes, is therefore likely to rise.

Varying reports suggest that anywhere between a third and two thirds of small businesses put cashflow as their greatest financial concern. This strain is only going to increase as the recession continues.

Business Credit & Small Business Credit Cards

Famously, MBNA Ireland (part of The Bank of America) have been the largest independent provider of credit cards in the world, and have a range of credit cards. The Irish division of MBNA credit cards is amongst the leading providers of credit cards in the country. Since the credit crunch it is expected that businesses will call upon the services of such business lending facilities to bolster short-term cashflow. Nothing is more critical to the longevity of successful business management than that of business cashflow.

Irish Small Businesses and Supply-chain Credit Terms

Small businesses are famously in a weak position when negotiating supply-chain credit terms, hence their vulnerability in the current economic climate.

Many small businesses are increasingly likely to take advantage of their credit cards as a short-term form of credit.  There is also the benefit from credit card rewards and cash back too.

This enables businesses to temporarily allocate some of their expenses on a business credit card providing a temporary and flexible method of debt management.  Irish credit card provider’s are in a key position to offer this sort of service.

Thinking Money has previously stated that credit cards may not be an ideal long-term solution in managing SME debt, but can provide a reliable stop-gap in the short-term, possibly even preventing a temporary, insolvency shortfall.

With the financial profesionals and the Irish Times continually reporting liquidity difficulties of small and large business, there’s good cause to be tidying-up your business cashflow and credit.

Credit Card Management for Businesses

If you have any queries regarding debt management, Thinking Money would always suggest you seek professional help. Contact the small business debtline on 0800 197 6026, for impartial and confidential advice.