More than a third of SMEs have finance-related issues, with the top concern being delayed payments from customers. At the same time, the need to ensure large overhead costs such as payroll, rental and taxes are paid on time may lead to further cash flow problems. As the majority of these expenses are paid by either cash, cheque or bank transfer, all of which do not have credit terms, companies need to maintain sufficient cash buffer for these payments.

Using your credit card for better cash flow

On the other hand, your company credit card offers the ability to pay your recipients on time, with the cash leaving your bank account only when you pay off your bill on your credit card due date. This allows you to access up to 51 days of interest-free credit instantly, along with other benefits of paying with card. 

However, despite having a pre-approved credit limit, your company credit card is often underutilised as it can only be used for travel, dining and entertainment. The main reason being your landlord, suppliers and employees do not accept credit cards as a payment option.

With CardUp, you can now put all of these large, recurring business payments on your credit card and pay your recipients on time - your recipients do not even need a CardUp account as they receive the funds via bank transfer.

What are the benefits of using your credit card for better cash flow?

Furthermore, by using your credit card for more payments, it allows you to increase your cash buffer. Other benefits of this include:

• Support your company’s growth plans
• Access cash quickly to cover essential, unforeseen payments
• Deal with late payments coming from your customers
• Deal with volatile cashflow or seasonal demand cycles
• Earn points, miles and cashback on your corporate credit card, lowering the costs of your payments

In partnership with UOB and Mastercard, we are excited to be rolling out a special promotional deal for all our business customers.

Make your rent, payroll, supplier payments and more at a processing fee of just 1.9% (u.p. 2.6%) on all payments up to S$150,000 per company. No promo code is required - simply use your UOB Business Mastercard when making your payment and this reduced fee will be applied automatically.

What type of payments can you make through CardUp?

CardUp allows you to put your business expenses on your existing credit card, which include:

• Commercial rent to your landlord
• Payroll to your employees
• Supplier payments
• Corporate tax payments to IRAS
• Insurance premiums to your providers
• Season parking payments
• Car loans 

Don’t have a UOB Business Mastercard?

This promotional fee of 1.9% is only valid for UOB Business Mastercard holders. To enjoy this limited time offer, get in touch to apply for one now.