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How A Business Can Get The Full 51 Or 55 Additional Days To Pay For Purchases

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      By aligning supplier payment due dates with day one of the Card statement period, a business can get another 51 or 55 days to pay, on top of the supplier terms. If supplier terms are 30 days, that allows 81 or 85 days to pay off the purchase; leaving a business more time with cash on hand for other expenses, whether that's paying off a supplier with shorter payment terms, upgrading equipment or snapping up a great deal while it's still available.

       

      This example shows how a business purchase can be paid for 55 days after ordering:

      1 December:       

      Cafe owner Josie buys her coffee beans.

      31 December:     

      Her supplier's terms are 30 days so the payment is due on 31 December. This is also the first day of her Card statement period.

      Josie pays the supplier on 31 December using her American Express Business Explorer® Credit Card.

      25 February:       

      That gives her 55 days on top of her supplier terms, so she doesn't have to pay for the beans until her Card statement due date of February 25.

       

      It’s worth noting that once the 51 and 55 days are up, the purchase will still have to be paid off in full, otherwise interest or a late payment fee may apply.

                        

      Cash flow days to pay for purchases on American Express Business Cards

       

      Platinum business Card: Up to 55 days to pay for purchases

      Qantas Business Rewards Card: Up to 51 days to pay for purchases

      Business Explorer Credit Card: Up to 55 days to pay for purchases

      Published: 01 September 2020

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