Best card for business?

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Looking to start expanding my business by selling on Amazon, only issue is Amazon keeps hold of the money for 21 days before releasing it to an account. The problem would be that I would use the customers money to place the order, taking a fee for the service (It's called DropShipping)

My plan is to buy the goods on a credit/prepaid card, then clear the balance every month with the customers money.

Just for those that are slightly confused, here's a better example

Customer buys product of me for £5, I use that £5 to buy the product that only costs £3, keeping £2, I'd use the credit/prepaid card to buy the item costing £3 and when Amazon releases the money I would clear it with the customers £5 keeping the £2.

Hope that makes sense.

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  • yasmup
    yasmup Posts: 114 Forumite
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    chrisuren wrote: »
    Looking to start expanding my business by selling on Amazon, only issue is Amazon keeps hold of the money for 21 days before releasing it to an account. The problem would be that I would use the customers money to place the order, taking a fee for the service (It's called DropShipping)

    My plan is to buy the goods on a credit/prepaid card, then clear the balance every month with the customers money.

    Just for those that are slightly confused, here's a better example

    Customer buys product of me for £5, I use that £5 to buy the product that only costs £3, keeping £2, I'd use the credit/prepaid card to buy the item costing £3 and when Amazon releases the money I would clear it with the customers £5 keeping the £2.

    Hope that makes sense.

    I sell on amazon sometimes, and amazon don't keep my money for 21 days - they send it me shortly after I confirm I have dispatched the item. I understand the customer is not charged until I confirm I have dispatched the item (though hopefully amazon have reserved the funds - well I've never had a problem with payment with amazon)

    But I've just checked and it seems amazon do not pay brand new sellers now for 14 days - but this is only a short term thing until they can trust you.
    http://www.amazon.co.uk/gp/help/customer/display.html?ie=UTF8&nodeId=200483680

    If you need credit to buy the goods from your supplier, and they won't give you credit (most retailers rely on credit terms from their suppliers - that's why the likes of Comet & JJB went bust because that credit facility was withdrawn) then you will need to fund the cash flow issue yourself.

    If you need to borrow that money, check out the MSE articles on Credit Cards & Loans to find the best solution that suits your needs.

    http://www.moneysavingexpert.com/credit-cards/
  • bsms1147
    bsms1147 Posts: 2,261 Forumite
    First Anniversary Name Dropper First Post Combo Breaker
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    If you are able to pay the dropshipper with a credit card, then get a cashback one to earn some more out of the purchase.
  • InsideInsurance
    InsideInsurance Posts: 22,460 Forumite
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    chrisuren wrote: »
    Looking to start expanding my business by selling on Amazon, only issue is Amazon keeps hold of the money for 21 days before releasing it to an account. The problem would be that I would use the customers money to place the order, taking a fee for the service (It's called DropShipping)

    My plan is to buy the goods on a credit/prepaid card, then clear the balance every month with the customers money.

    Just for those that are slightly confused, here's a better example

    Customer buys product of me for £5, I use that £5 to buy the product that only costs £3, keeping £2, I'd use the credit/prepaid card to buy the item costing £3 and when Amazon releases the money I would clear it with the customers £5 keeping the £2.

    Hope that makes sense.


    Are you actually looking for a business credit card or a personal credit card that you intend to use for business purposes?

    True business cards tend not to be too good a deal and are focused on providing benefits that corporate clients want, like integration to ledger software, rather than vSMEs.

    AmEx and Capital One do slightly better offerings but the Capital One one is actually taken out personally and not by your business.
  • VespaRick
    VespaRick Posts: 20 Forumite
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    The Capital One Aspire Business is a good option. I use this one for my business at the moment. It offers 5% cash back for the first three months then 1.25% there after.
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