Business checking account balance transfer

[Account Closed]

Interested in a balance transfer of funds from my business credit cards to a bank account for REI. Should these funds be drafted into a my personal checking account or into my business checking account?

[Linda Weygant]

I've pulled 0% cash advances from credit cards and it works just fine.  My card charges a 3% fee.  My last transaction was for $20,000, 0% rate, teaser rate ended 18 months later.

I just make sure that I can afford to pay off that $20,000 by the end of the 18 months, otherwise it is 15.5% interest. So every month, I pay out $1150 back towards the card, either from where I just invested it or from other cash flow elsewhere. 

Things can kind of suck for those 18 months, but definitely worth it in the long run - $20,000 at 3% (2% annualized).  Yes please!

Note:  This does require both discipline and the ability to have other cash flow that can be directed towards the payoff if the investment does not start cash flowing right away.  If you're already running thin all the time, I wouldn't do this.

As far as it being a business card and you using the funds personally, that can be a bit tricky depending on the type of business you have and whether or not you've got any basis in it when you do this and whether or not the card already has a balance.

I would make sure there are no other transactions on the card and leave this out of the business.  Take the cash advance, put it in your personal account, make your investment and pay the credit card off out of personal funds.