Anyone who runs a business will know there comes a time when you are in desperate need of some quick capital whilst waiting for some payments to come in (such as 30 day invoices, payments on account etc) but you don’t want the stress of having to go to a bank or loan company requesting some additional funds; especially in this economical climate when chances of being lent money is even more slim! So what do you do? Well today my friends I am going to impart some of my modest wisdom with you, a quick and easy method of gaining (a type of) 30-day interest free loan.
Now a quick disclaimer here, I am in no way offering ‘sound financial advice’ and everyone’s situation is different so this method may not be the ideal solution for everyone, but this method does work for any of you out there that know within 30 days you will have the money to repay this entire loan, you just need the money right now in order to keep your business afloat. If, for whatever reason, you know that you are not going to have the money within 30 days to repay the ENTIRE loan back then this is not a good option and will not work.
So with that out of the way let’s get to the brass tacks shall we!
Method to get 30-day interest free loan
Here’s my top tip. If you go and get yourself a credit card with immediate effect (personal or business, it doesn’t really matter – just ensure this credit card has a max limit that covers the amount you need right now and know you can afford to pay back within 30 days) then you’re able to pay out on whatever it is your business needs right now to keep everything running smoothly.
“Sounds too easy…What’s the catch?” I hear you cry, well it’s not a ’catch’ per-se but the only way to ensure you don’t incur any interest on this amount is to pay back the FULL amount you borrowed within 30 days. What happens then? Nothing! You’ll have paid the credit card off before the end of the 30 day period which means the balance rolling into the next month equals £0 …therefore no interest will be charged! So what does this mean? You just (technically) gained a 30 day interest free loan!
So the method is quite simple when you break it down:
- Get the credit card
- Use it to pay for all the outgoings you desperately need right now
- Repay the full amount within 30 days
- Voila! 30-day interest-free loan
No loan company is going to be able to offer you that, trust me!
As I mentioned above, this method only works for businesses who know they have a large sum due to be paid within 30 days but need money right now to keep your business afloat. It happens to the best of us so don’t be ashamed if this is happening to you right now, just PLEASE ensure you only use this method if you know 100% that you’re due to receive a payment within 30 days that is going to cover the amount you spent on the card…otherwise you’ll get hit with a nasty sum of interest charge which can of course snowball and become increasingly hard to pay off. So avoid all that drama and just be sure to pay off the full amount within 30 days – if you know full well you won’t be able to pay it back within 30 days DO NOT USE THIS METHOD. Simple!
Just a final disclaimer here, I am in no way being paid to advertise this method by any credit card companies or similar. This is merely a technique I have used many times throughout my business career and just thought it may help some others out there who are in a similar situation to where I have been in the past. This of course relies quite heavily on your credit score in regards to the amount of money a credit card will gain you as a maximum limit, but it’s a good place to start without having to go through loan companies.