How can paying with a card save money?

Paying with a credit card can generate substantial savings through multiple channels. First, most business credit cards offer cashback rewards ranging from 1.5% to 2% on purchases, creating immediate returns on your spending. Additionally, using a card allows you to maintain better cash flow by keeping your money invested for longer periods while still meeting payment deadlines. The card's grace period effectively provides interest-free financing for 20-30 days, during which your capital can continue earning returns. When combined with early payment discounts and potential tax benefits, the total savings can significantly outweigh any processing fees.

What are early payment discounts?

Early payment discounts are incentives offered by vendors to encourage prompt payment of invoices. Typically expressed as terms like "2/10 net 30," these arrangements mean you can take a 2% discount if you pay within 10 days, while the full payment is due within 30 days. By using a credit card to pay immediately, you can capture these early payment discounts while still maintaining your standard payment timeline through your card's billing cycle. This creates a unique opportunity to double-dip on savings - earning both the early payment discount and credit card rewards while preserving your cash flow advantage.

How does Tola let me pay with a card?

Tola provides a seamless platform that enables you to pay vendors with your credit card, even when they don't directly accept card payments. Our system handles the payment processing and automatically converts your card payment into the vendor's preferred payment method, whether that's ACH, wire transfer, or check. This allows you to capture card rewards and maintain longer payment terms while ensuring your vendors receive payments in their preferred format. The platform integrates with your existing accounting software and provides detailed transaction reporting, making it easy to track savings and manage cash flow effectively.