One Friday a month we look at financial tips and advice for freelancers. (They’re slanted toward the US, so if you’d like to see or share insights from another perspective, just reply to this email!)
A couple weeks ago I talked about how I got a line of credit through Amex for my freelance business. I’ve always been pretty comfortable with the 2-3 month cushion I’ve built up, but after seeing a client’s payroll drained in the ADP hack, I wanted a second layer of protection.
It was easy, painless, and that’s because I’ve had their platinum business card since just a few months after I started as an indie worker. But the benefits go back way further than that.
Having a separate card to pay for expenses...from software, to other freelancers...has made accounting much easier. I never had to go through the ugly process of splitting things up
once I decided to separate from my personal spending habits. It’s also given me space to float purchases and outsourced work from clients without stressing about how I’ll get things paid...and the points really are nice.
It’s an expensive annual fee, but the hundreds of dollars a year in credits have made up for it. That said, I’m only endorsing having a business credit card in general, not Amex specifically.
You might have different goals and different needs, and thankfully, there are a lot more cards out there for small businesses. So, look around, ask around, and see if you can’t find something that fits your needs today. You never know how it’ll pay off tomorrow.
P.S. If you’ve got any questions on a financial topic, just reply to this email and I’ll see if I can’t help you out.