Up to 55 days interest-free: how paying bills by card helps cash flow

How do I get 55 days interest-free on supplier payments?

Short answer: Pay the invoice through B2Bpay with a credit card that offers up to 55 interest-free days, then pay your card statement in full by its due date. The supplier is paid by bank transfer now; the cash leaves your account up to 55 days later.

The number of interest-free days is set by your card, not by B2Bpay. Many Australian business cards advertise "up to 44" or "up to 55" days. What B2Bpay does is let you put payments on that card that would otherwise have to come straight out of your bank account: supplier invoices, rent, the ATO, insurance and utilities.

The result is that a far larger share of your outgoings can ride your card's statement cycle, which is where the cash flow benefit comes from. See paying suppliers who don't accept cards for how the payment side works.

What does "up to 55 days interest-free" actually mean?

It means the maximum gap between a purchase and the day you must pay for it without interest, if you pay the whole statement on time. Most payments fall well short of the maximum.

A card with a 30-day statement period and 25 days to pay offers up to 55 days. A purchase on day 1 of the statement period sits on the card for 30 days before the statement is issued, then another 25 days until payment is due: 55 days. A purchase on day 30 gets only the 25 days to pay.

Two conditions usually apply. You must have paid your previous statement in full, otherwise interest-free days are suspended and interest accrues on new purchases. And the transaction must be a purchase, not a cash advance. Payments through B2Bpay are purchases from B2Bpay. Check your own card's terms for the exact rules.

How do I time a payment to maximise interest-free days?

Pay just after your statement closes. That is when a new purchase has the longest run before it appears on a statement and becomes due.

B2Bpay supports future-dated payments, so you can schedule a BAS or rent payment for the day after your statement date while still meeting the biller's due date. Remember that the biller receives the funds a few business days after your card is charged, so schedule with that margin in mind. The figures above are illustrative; your card's cycle sets the real numbers.

Is paying BAS by credit card a good way to manage cash flow?

It can be, when a tax due date lands before the cash to pay it has arrived. Paying through B2Bpay means the ATO is paid on time by bank transfer, while the money stays in your account until your statement is due.

Small businesses have long used cards to bridge the gap between a BAS due date and customer receipts. The ATO's decision to stop accepting credit cards after 30 June 2027 removes the direct route, but not the B2Bpay route, because B2Bpay pays the ATO by bank transfer on your behalf. See paying the ATO by credit card.

The ATO advises electronic payments can take up to 4 business days to reach it, per its payment options page, so do not time the payment so tightly that it arrives late. A late payment can attract ATO interest, which would wipe out the benefit.

What does it cost to buy those days?

The platform fee, which is a percentage of the payment and depends on your card and plan. For Visa and Mastercard it is 1.10% ex GST on Essential, 2.10% on Earn Plus and 2.50% on Earn Max.

Whether that is good value depends on what the alternative costs you. An overdraft or short-term loan charges interest; chasing a supplier for extended terms has its own cost; paying the ATO late attracts interest. Against those, a one-off fee of 1.10% for up to 55 days, plus your card's points, is often competitive. Add the B2B Points on Earn Plus or Earn Max and the picture usually improves further.

The fee is generally a business expense; confirm with your accountant. Use the points calculator to compare plans for your typical payment.

What happens if I don't pay my card in full?

You lose the benefit. If the statement is not paid in full by the due date, the card's purchase interest rate applies, often from the date of each purchase, and most cards suspend interest-free days until the balance is cleared.

That makes the strategy simple: only put through B2Bpay what you can clear when the statement arrives. Treat the card as a timing tool, not as borrowing. Many businesses set a calendar reminder for the statement due date, or set up an automatic full payment from their bank account.

If you do need to carry a balance for longer, a credit card is rarely the cheapest option, and you should compare it with other finance. B2Bpay does not provide credit or financial advice; speak to your accountant or lender about what suits your business.

Can I earn points on paying off the card too?

Yes. You can pay your credit card balance through B2Bpay by bank account or PayTo and earn B2B Points on that payment as well, at the bank account rate (0.50% Essential with no points, 1.00% Earn Plus, 1.87% Earn Max ex GST) or PayTo rate (0.60%, 1.10%, 1.97%).

That is a second layer on top of the points earned when the bills went on the card. Whether it is worth the fee depends on how you value the points; the B2B Points page sets out conversion rates, and points maths works through examples.

For most businesses the core benefit is simpler: pay every bill on time, keep cash in the bank for up to 55 days, and earn points on spend that used to earn nothing.