Small Business Credit Cards for Your Pharmacy by Kevin Chappell
Most businesses need credit at some point in their existence , and your pharmacy is no exception . Depending on the length of time you ’ ve been in business , your credit needs will vary . Here are two scenarios where credit cards can really help .
New and Growing Pharmacies Established Pharmacies
New and growing pharmacies need capital to fund their inventory and payroll . If your capital needs are particularly large , then you ’ ll want to apply for a bank loan . This traditional approach gives you more time to pay off the loan , but the interest rates can be high .
However , smaller pharmacies or pharmacies funding additional growth may require smaller amounts of capital . If you need less than $ 20,000 and you have good personal credit , then using credit cards is an option for your business . The length of time you have to pay the loan back will be shorter , but the interest rate can be much lower than a bank loan .
Look for a credit card with
• No interest on purchases ( at least 6 months interest free )
• Low APR after the introductory period
• No annual fees
In those first six months , you can make a big dent in what you ’ ve invested without the interest charges of a bank . Make sure you have a plan on paying off your investment .
Now , established pharmacies don ’ t have the start-up capital needs of younger companies . At this stage , you ’ re more concerned about managing your cash flow and tracking expenses . It ’ s important to use a card that downloads purchase information into your accounting package . In addition to expense management , you ’ re now spending enough each month that you should get a card with a good rewards program .
Imagine : You and your employee ’ s spending get applied to a common pool of rewards . You can use them to reward employee ’ s hard work through incentives or travel – or for yourself to take a well deserved vacation ! You could even use rewards to create incentives for customers . Or , to secure high-value items for your pharmacy ’ s promotional needs . Over time and as your reward points build , perhaps you can do all three !
Look for a credit card with
• Cash back or Travel Rewards
• No or low annual fees
• Tracks employee purchases separately under a master account
• Integrates with your accounting software www . smartmoneytalk . com / new-pharmacy-credit-cards www . smartmoneytalk . com / established-pharmacy-credit-cards