On 06/11/2013 16:48, Gefreiter Krueger wrote:
On Wed, 06 Nov 2013 16:41:51 -0000, John Rumm
wrote:

On 06/11/2013 15:33, Gefreiter Krueger wrote:
On Wed, 06 Nov 2013 15:28:17 -0000, John Rumm
wrote:

On 02/11/2013 13:56, Gefreiter Krueger wrote:
On Sat, 02 Nov 2013 13:36:23 -0000, Roland Perry
wrote:

In message , at 13:31:56 on Sat, 2 Nov
2013,
Gefreiter Krueger remarked:



It can be a very good (and required) idea in business to make the cash
flow work. The same can be true for individuals.

Asking for trouble. Spending what you haven't got yet.

You don't know much about business do you...

Incomes are frequently generated at the completion and delivery of
products or services to customers. These don't usually happen on nice
monthly schedules. Now you could say to your staff and suppliers: "I am
not going to pay you for the next four months, but don't worry, the
money is coming, you won't loose out", however there is a chance they
may be less than pleased with that idea. Hence many businesses use short
term borrowing to allow normal activity to continue during the parts of
the year where the companies money is occupied generating income as work
in progress.

So long as its properly budgeted and accounted for, its far from "asking
for trouble". In most cases, its the lack of available credit that is
asking for trouble.

And something goes wrong and the customer doesn't pay up. Oops.

And the alternative would be no business in the first place... how is
that better?

Why assume my charge card isn't a small amount too?

Because if it was there wouldn't be much point in bothering with one.

A somewhat narrow field of view...

Charge cards are particularly useful for business purchases. I can buy
things for my employer, and not have to pay for them personally. At the
end of the month they can pay for them directly.

Then you should have their debit card.

No, because debit cards don't have joint and several liability. Using
debit cards for online or "card holder not present" transactions is
inherently more risky.

I've never had a problem. Banks are usually quite helpful.

Feeble argument.

They also result is one transaction on your
account for every spending event on the card.

What? That happens with anything.

Keep in mind that business
pay "per transaction" fees on their accounts. So a monthly credit /
charge card reduces many transactions into one on the account.

Huh?

ok with sub titles for the hard of thinking.

Joe in the space of a month makes 100 purchases for his business on his
debit card. That results in 100 transactions on his bank for which hi
company is billed (for example) 64p each. A cost of £64.

Alternatively he uses his company CC to make the purchases, and at the
end of the month settles the bill with a single transaction from the
company account at a total cost of 64p

A further advantage for small businesses is that they often allow time
to invoice a client such that you keep cash flow positive.

I used to do that with my debit
card, I simply claimed for them immediately if it was a large amount.

Positive cash flow is not possible with debit card if you are invoicing
after the purchase - its too late, you have already paid.

Easier to just spend the money you already have, then all you need to do
is glance at the balance every so often.

Now you are getting it...

And the[y] way you know what money you already have is?

Well done, a budget.

No, what's in my current account.

I think you are confirming our suspicions.

--
Cheers,

John.

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