Why Business Owners Should Pay Bills through Plastiq

Paying business expenses with a credit card is a great idea provided you have the cash to pay your balance in full each month. Not only will you earn points or miles for each dollar you spend, but you can secure valuable consumer protections and perks with some purchases. Business cards also make it easier to keep your business purchases separate from your personal spending, which can make your life a lot easier during tax time.

With that being said, business owners would be wise to look into using Plastiq.com for business purchases in certain situations. While there’s a 2.5% fee assessed on transactions made through Plastiq.com most of the time, you can avoid this fee by referring people to the service through their refer-a-friend program. If you do pay this fee, you can also write it off as a business expense in most cases.

Here are a few of the biggest reasons to use Plastiq.com for your business expenses:

#1: Pay contractors that you couldn’t pay with credit otherwise.

One of the biggest benefits of using Plastiq.com for expenses is the fact that you can use it to pay contractors who won’t accept credit otherwise. With Plastiq.com, you can set up payments to anyone and funnel those payments through your favorite rewards credit card. The contractor or vender you’re working with can receive payment via paper check, wire, or ACH, which means they can accept your payment without paying the fee they would need to pay to accept credit cards.

#2: Improve your business cash flow.

By paying some of your business expenses with a credit card, you have the option of deferring payment and freeing up cash flow during your credit card’s cycle. This can help you manage cash flow and buy some time if you’re waiting on customers to pay or other income to come in.

#3: Manage all your bills in one place.

Plastiq.com makes it easy to set up a profile where you can manage all your business expenses in one place. You can set up bills to be paid right away or schedule them to be paid at some date in the future. You can also set up recurring bills to be paid on the same date every month.

#4: Refer people for fee-free dollars.

While paying a 2.5% fee for your business expenses seems like a bad idea, this fee will work out to a lot less if you write it off as a business expense. According to Plastiq.com, many business owners wind up paying a net fee of 0 to .5% after taking the tax impact into account.

You can also refer friends to the program and earn “fee-free dollars” that let you make payments without a fee. I used referrals to pay off my mortgage and earn $2,000 in travel credit this way, so I know it works.

If you want to refer people and earn fee-free dollars, you can sign up for Plastiq.com here. If you use my referral code — “671741” — you will get $500 in fee-free transactions after you make $500 in payments through the service (I will also get fee-free dollars for referring you). From there, you get $1,000 in fee-free dollars for everyone who signs up with your code and uses the service to make $500 in payments.

 

Have you used Plastiq.com to pay bills? Why or why not?