DIYbanter - View Single Post

dpb

On 05/14/2017 3:06 AM, wrote:
By industry standards, I am a deadbeat, too. There are months when I
pay off my business credit accounts and it can reach nearly $10K. Any
given month. It is about $7500 or so, but it is due every month. Rain
days? What are those? Client doesn't pay on time? Not my creditors
fault, you can ask them. No excuses, no leeway. If I miss or I am late,
I might get a pass, but most likely will be terminated as a credit
client. Commercial credit is demanding; a late fee for an "oops" isn't
part of the equation. So I don't miss, and I am not late.
....

While still on the independent consulting gig I used a CC for floating
instrumentation or other hardware and like purchases for billing clients
with those vendors that didn't have standing accounts with and couldn't
foresee were going to be consistent-enough over longhaul to make
establishing an account worthwhile. But, those were billable accounts
that knew clients would pay when invoiced so was not issue of cash flow.

I'd never operate the farm inputs that way, however; the operating
capital for it is on annually renogtiated/extended credit line through
one or more sources. Far, far cheaper rates and when there's an
unforeseen glitch you go visit...

When it's 200 gal to fill a tractor tank and consumption may push 18
gal/hr so it's a daily chore, fuel bills alone monthly can push $10k for
heavy usage months. Add in other inputs such as seed, fertilizer,
chemical...

Anyway, it'd seem a float for smaller stuff might be ok, but the
investment up front for a full-size house job unless you're getting
progress payments would seem to require a different financing scheme
entirely so the CC would never come into play other than to routinely
pay every month's bill when it's due.

We use CC for almost all non-business expenses; together probably
average $2K/mo, but haven't paid an interest charge in 20 yr (except I
do recall missed a pay date on AmEx one time while were out of town but
they rescinded the late fee altho I think we did pay a couple bucks of
interest).

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