Leveraging Credit from companies such as American Express are a great way to earn additional rewards from Amazon FBA. In the past two years, I’ve had over £6,000 worth of rewards.
When used responsibly, credit cards can help you manage payments, bridge cash flow gaps and build credit so that you can grow your business. But you must use them responsibly.
Not all credit cards are created equal. As a business owner, you need to find a credit card that aligns with your specific needs. For Amazon FBA sellers, there are several credit cards that offer rewards and benefits tailored to your business.
In this article, we’ll take a look at some of the best credit cards for Amazon FBA sellers and how you can use them to grow your business. I would advise you apply for an American Express, as these do offer some great products.
By leveraging credit cards, you can take advantage of cashback rewards, travel benefits, and other perks that can help you save money and reinvest in your business. But it’s important to remember that credit cards should be used responsibly.
You need to make sure to pay your balance in full each month to avoid interest charges and late fees. With the right credit card and responsible usage, you can take your Amazon FBA business to the next level.
I am not a financial advisor, but I would only recommend credit cards to people that have good credit and have the savings to pay off the credit card. Don’t rely on Amazon sales to pay the credit card.
Understanding Credit Cards for Your Amazon Business
As an Amazon business owner, you may want to consider leveraging credit cards to help you manage your finances. Credit cards can offer a range of benefits, such as earning rewards points or cash back on purchases, providing access to a line of credit, and helping you build your credit score.
Benefits of Business Credit Cards
Business credit cards can offer many benefits to Amazon sellers. Some of these benefits include:
- Rewards points or cash back on purchases: Many business credit cards offer rewards points or cash back on purchases, which can help you save money or earn rewards.
- Access to a line of credit: Business credit cards can provide access to a line of credit, which can be useful for managing cash flow or making large purchases.
- Building your credit score: Using a business credit card responsibly can help you build your credit score, which can be important for securing loans or other financing in the future.
- Simplifying your accounting: Business credit cards can make it easier to track your expenses and simplify your accounting.
Types of Credit Cards to Consider
There are many types of credit cards available for Amazon business owners. Some of the most common types include:
- Cash back cards: Cash back cards offer cash back on purchases, which can be useful for saving money or reinvesting in your business.
- Rewards cards: Rewards cards offer rewards points on purchases, which can be redeemed for a variety of rewards, such as travel, merchandise, or statement credits.
- Low-interest cards: Low-interest cards offer a lower interest rate than other credit cards, which can be useful for managing debt or making large purchases.
- Charge cards: Charge cards require you to pay off your balance in full each month, which can be useful for avoiding interest charges and managing your spending.
How to Choose the Right Credit Card for Your Business
When choosing a credit card for your Amazon business, it’s important to consider your specific needs and goals. Some factors to consider include:
- Rewards and fees: Look for a credit card that offers rewards or cash back on purchases, but be sure to consider any annual fees or other fees associated with the card.
- Credit score: Your credit score can impact your ability to qualify for certain credit cards, so be sure to check your credit score before applying.
- Risk: Using credit cards can come with risks, such as accumulating debt or damaging your credit score if you don’t use them responsibly. Be sure to consider these risks before applying for a credit card.
- Line of credit: Consider how much of a line of credit you need and whether the credit card you’re considering offers a sufficient line of credit for your needs.
In summary, credit cards can be a useful tool for managing your Amazon business finances. When choosing a credit card, be sure to consider your specific needs and goals, as well as any risks or fees associated with the card.
Maximising Rewards and Savings
If you’re using credit cards to make purchases for your Amazon business, it’s important to know how to maximise your rewards and savings. Here are some tips to help you get the most out of your credit cards.
Earning Rewards and Points
Many credit cards offer rewards and points for every purchase you make. These rewards can be redeemed for various benefits, such as cashback, statement credits, or discounts on future purchases. To earn more rewards and points, consider using a credit card that offers higher rewards rates for Amazon purchases or other business-related expenses.
For example, the Amazon Prime Rewards Visa Signature card offers 5% back on Amazon purchases, as well as 2% back at restaurants, gas stations, and drugstores. Another option is the American Express Business Gold Card, which offers 4X points on the two categories where your business spends the most each billing cycle, including purchases made on Amazon.
Redeeming Rewards and Points
Once you’ve earned rewards and points, you can redeem them for various benefits, such as cashback, statement credits, or discounts on future purchases. To get the most value out of your rewards and points, consider redeeming them for Amazon purchases or other business-related expenses.
For example, you can use your rewards and points to pay for purchases on Amazon or to get discounts on future Amazon purchases. Some credit cards also offer the option to shop with points, allowing you to use your rewards and points to pay for purchases at other retailers.
Cashback and Statement Credits
Cashback and statement credits are other ways you can save money with your credit cards. Cashback is a percentage of your purchase that is returned to you as a rebate, while statement credits are credits applied to your account to reduce your balance.
To maximise your cashback and statement credits, consider using a credit card that offers higher cashback rates or statement credits for Amazon purchases or other business-related expenses. For example, the Amazon Prime Rewards Visa Signature card offers 5% back on Amazon purchases, while the American Express Blue Business Cash Card offers 2% cashback on all purchases up to £50,000 per year.
Other Perks and Savings
In addition to rewards, points, cashback, and statement credits, many credit cards offer other perks and savings that can benefit your Amazon business. For example, the Amazon Prime Rewards Visa Signature card offers a £70 Amazon gift card upon approval, as well as travel and purchase protection benefits.
Another option is the Chase Ink Business Preferred card, which offers cell phone protection, trip cancellation insurance, and other benefits that can help you save money and protect your business.
By following these tips, you can maximise your rewards and savings with credit cards when making purchases for your Amazon business.
Managing Credit Card Debt and Payments
If you’re using credit cards to manage your Amazon business, it’s important to keep on top of your payments and debt to avoid interest charges and late fees. Here are some tips to help you manage your credit card debt and payments effectively.
Understanding Interest and Fees
Credit card companies charge interest on any balance that you carry over from month to month. The interest rate is usually expressed as an annual percentage rate (APR). It’s important to understand what your APR is and how it’s calculated, so you can avoid paying unnecessary interest charges.
Credit card companies may also charge fees for things like balance transfers, cash advances, and late payments. These fees can add up quickly and make it harder to pay off your debt. Be sure to read the terms and conditions of your credit card agreement carefully, so you know what fees to expect.
Making Payments and Avoiding Late Fees
To avoid paying interest charges and late fees, it’s important to make your credit card payments on time. You can usually make payments online, by phone, or by mail. Be sure to check your credit card statement for your minimum payment amount and due date.
If you can’t pay your balance in full, try to pay as much as you can each month to reduce your interest charges. You can also set up automatic payments to ensure that you never miss a payment.
Managing Debt and Improving Credit Score
If you’re struggling with credit card debt, there are several strategies you can use to manage your debt and improve your credit score. Here are a few options:
- Balance transfers: Some credit cards offer balance transfer promotions with low or no interest rates. You can transfer your high-interest balances to these cards to save money on interest charges.
- Debt consolidation: You can consolidate your credit card debt into a single loan with a lower interest rate. This can make it easier to manage your debt and reduce your interest charges.
- Credit counselling: A credit counsellor can help you create a budget and develop a debt repayment plan. They can also negotiate with your creditors to reduce your interest rates and fees.
By managing your credit card debt and payments effectively, you can avoid unnecessary fees and interest charges and improve your credit score over time.
Managing Employee Cards and Accounts
As your Amazon business grows, you may find yourself needing to delegate purchasing power to employees. One way to do this is by adding employee cards to your credit card account. Here are some tips for managing employee cards and accounts effectively:
Adding Employee Cards
Most credit card companies, including Amazon, allow you to add employee cards to your account for a small fee. This is a great way to give your employees the ability to make purchases on behalf of your business without having to use their own personal credit cards. Plus, you can earn rewards points or cashback on their purchases.
Before adding an employee card, make sure you set clear guidelines for how it can be used. You should also consider setting spending limits and alerts (more on that below).
Setting Limits and Alerts
To prevent overspending, you can set limits on how much your employees can spend using their cards. You can do this by setting a maximum spending limit for each employee or for the entire account.
You can also set up alerts to notify you when an employee makes a purchase above a certain amount or when they make a purchase outside of normal business hours. This can help you catch any fraudulent or unauthorised purchases early on.
Managing Employee Spending
It’s important to keep track of your employees’ spending to ensure that they are using their cards responsibly. You can do this by reviewing your credit card statements regularly and comparing them to your business records.
You may also want to consider using accounting software to help you manage your finances. This can make it easier to track your expenses, reconcile your accounts, and generate reports for tax purposes.
When it comes to accounting, it’s important to keep your personal and business expenses separate. Make sure that you only use your credit card for business-related expenses and keep all receipts and invoices for your records.
If you have multiple employees using the same credit card account, you may want to consider using different expense categories to track their spending. This can make it easier to allocate expenses to different departments or projects.
Overall, managing employee cards and accounts can be a great way to delegate purchasing power and streamline your business expenses. Just make sure you set clear guidelines, set limits and alerts, monitor spending, and keep accurate records.
Security and Risk Management
When it comes to running an Amazon business, it is crucial to keep your personal information and financial data safe and secure. Here are some tips to help you protect yourself from security risks and minimise fraud:
Protecting Personal Information
One of the most important aspects of security is protecting your personal information. Here are some ways to keep your information safe:
- Use a strong, unique password for your Amazon account
- Enable two-factor authentication for an extra layer of security
- Never share your password or personal information with anyone
- Be cautious of phishing scams and suspicious emails or messages
Monitoring Account Activity
Regularly monitoring your account activity can help you detect any unusual or fraudulent activity. Here are some ways to keep track of your account:
- Set up notifications for account activity and changes
- Check your account regularly for any unauthorised transactions or changes
- Keep an eye out for any suspicious emails or messages
Minimising Fraud and Risk
To minimise the risk of fraud and security breaches, here are some additional steps you can take:
- Use a business credit card with fraud protection and other security features
- Keep your computer and software up to date with the latest security patches and updates
- Only use secure Wi-Fi networks when accessing your Amazon account
- Be cautious of third-party apps and services that require access to your Amazon account
By following these tips, you can help protect your personal information and minimise the risk of fraud and security breaches in your Amazon business.
In conclusion, leveraging credit cards can be a powerful tool for growing your Amazon business. By using credit cards wisely, you can improve cash flow, build credit, and earn valuable rewards.
When choosing a credit card, it’s important to consider your business’s specific needs and goals. Look for a card with rewards that align with your spending habits and a low interest rate to avoid high fees.
Remember to always pay your balance in full and on time to avoid interest charges and late fees. Set up automatic payments or reminders to help you stay on track.
Finally, monitor your credit score regularly and use credit responsibly to build a strong credit history. This will help you qualify for better credit terms and financing options in the future.
Overall, leveraging credit cards can be a smart and effective way to grow your Amazon business. Just be sure to use them responsibly and stay on top of your finances to reap the benefits.