How do you get a little more time to pay? Listen to this episode of #70secondCEO with Carl Gould.
Read full transcript:
Hi Everyone, Carl Gould here your #70secondCEO, just over a minute of investment per day for a lifetime of results.
Any time you can get yourself another 30 days that’s worthwhile. So if you have a credit card and it’s got a $20,000 limit on it, and you have $20,000 cash in the bank and you’ve got a $20,000 bill. Alright, so everybody follow that? I have $20,000 credit card, $20,000 cash in the bank, and a $20,000 bill. Alright.
So first thing I would do is I would say, “When do I absolutely have to pay that bill?” and I will, and in accounts payable you try to pay the last possible day so you can hold on to it for as long as you want.
And so, if I have 30 days to pay that bill, I’m going to take 30 days. But I’m not going to write the cheque out of my account, I’m going to go to my credit card and say, “What is the statement date that you know, when does the statement, period ends and closes, and I get my statement and then I’m ready, I get the bill.
So I’m going to go the day of or the day before and I’m going to put on that credit card because by the time it hits, it’ll go on the next statement date, or I’ll take the first day of the next statement date to be safe. Alright, what that means is, it won’t show up on my bill for another 30 days. And then I’ll have another 30 days to pay it.
So I have used credit to my advantage, a little bit of being clever, but I’ve also using credit to my advantage to give myself 90 days before I have to spend that $20,000 that is sitting in my bank account.
Like and follow this podcast so you can learn more. My name is Carl Gould and this has been your #70secondCEO.