Its an age old question, do we use cash or card? Being financially astute the team at Select Factoring do different things when it comes to paying up. Personally I’ve always stuck everything on my card. It’s easy, its simple, and feels a little less painfull. The only thing about using this payment method is its quite easy to forget how much money you have in the account, you could go slightly mad splashing the cash everywhere, and since the introduction of PIN numbers, the number of people who have had their cards cloned and PIN cloned has risen. Not only from the cash machines but online. It can be quite frightening, unless you are savvy enough to keep an eye on your account online and see if there are large amounts of cash going out of your account which you haven’t spent.
Cash on the other hand is what it is, you know how much you’ve spent, you know how much you have, you can limit yourself to spending on a weekly basis. The downside of cash is having to draw the stuff out of the machines or bank, and carrying amounts of cash around can be slightly unnerving.
I use my card alot, but there are times when I decide, enough is enough, lets draw out an amount of cash for the week and that is all I will spend, including food and petrol and any other bits. But it can go quickly, then you end up resorting to using the card again.
What happens if you’re a business, well, for a start I don’t believe that companies have huge amounts of cash stored for purchasing. Most companies use invoicing systems which allows the company to pay for services and products up to 90 days later, rather than paying on the dot.