Buying livestock on a 0% interest credit card

[FarmerK]

I’ve noticed a lot of adverts for 0% for 6-12month credit cards recently.
Is anyone buying their store lambs/cattle with them? Is it too good to be true? Seems a good way to me because you’ll have the lambs bought, fed and money back in the bank then just pay the card off? Anyone got any advice?

 

[JD-Kid]

ummmm good point dont know how much yer could got on one tho credit I mean
but very intresting idea

 

[FarmerK]

ummmm good point dont know how much yer could got on one tho credit I mean
but very intresting idea

Even if it was enough to get you started that’s all I was thinking

 

[bobk]

Doubt a mart would accept credit card , 4% commission

 

[Pieces_of_Eight]

Using interest free credit to buy something that you will later sell at a profit sounds like a no-lose situation

(as long as you pay it off before the interest starts)

I've heard of people just doing balance transfers between cards over and over to stay interest free.

 

[Northeastfarmer]

Seems a good way to me because you’ll have the lambs bought, fed and money back in the bank then just pay the card off? Anyone got any advice?

And what happens if the cattle and sheep drop in between buying them on the card and selling them?
I guess if you have enough In the bank to service the loss then fair enough

 

[FarmerK]

And what happens if the cattle and sheep drop in between buying them on the card and selling them?
I guess if you have enough In the bank to service the loss then fair enough

I’m thinking it’s literally no different to using your own money. If price drops you’re going to loose it wether it’s mine yours or the banks etc. it’ll just allow for a bit of flexibility.

 

[bobajob]

I am not sure if a market would accept a credit card.
But i would think it will count as a 'cash transaction' and as others have said it will have a % interest cost because of this.

 

[ringi]

I’m thinking it’s literally no different to using your own money. If price drops you’re going to loose it wether it’s mine yours or the banks etc. it’ll just allow for a bit of flexibility.

There is a difference if you are left with having to pay 25% interest on a card rather then failing to get 2% interest in the bank.

 

[Poorbuthappy]

Also, don't forget there will be a fee, which though probably cheaper than current bank interest rates, will not be insignificant on short term borrowing.
And you need to factor in paying minimum payment each month.

 

[polk_farmer]

Check with the market you are going to buy from they accept credit cards. We once bought a lorry load of ewes from a market and went to pay on the business credit card ( was a bit stretched and it would give us a month's grace) but they wouldn't accept it. Luckily we had our cheque book on us, so had to frantically sort the money round before the cheque cleared

 

[Kiss]

Not that I condone such things

but personal loans seem to be about 1% cheaper than business lending I can get access to currently and no arrangement fees

 

[ringi]

Check with the market you are going to buy from they accept credit cards. We once bought a lorry load of ewes from a market and went to pay on the business credit card

Sometime a personal credit card can be used but not a business credit card. Limewise American Express is often not taken as it has higher charges for the vendor.

 

[ringi]

Not that I condone such things

but personal loans seem to be about 1% cheaper than business lending I can get access to currently and no arrangement fees

Personal loans tend to have simpler (cheaper for provider) credit rating systems so will often not lend as much as a business loan. There is nothing wrong on using a personal loan to pay for a car, so you can use the cash that would have paid for the car for something else....

 

[yellowbelly]

American Express springs to mind - the second clip in this would be nice if we were paying by card in a mart..

I do miss Not The Nine O'Clock News.

 

[Blue.]

Sometime a personal credit card can be used but not a business credit card. Limewise American Express is often not taken as it has higher charges for the vendor.

Our nearest mart charge 2.5% for a business credit card,next mart won’t take either,well that’s what the sign on the counter says.

 

[ringi]

Our nearest mart charge 2.5% for a business credit card.

What do they charge for a personal credit card?

 

[Blue.]

What do they charge for a personal credit card?

They don’t,I had the wrong card one day and paid with my personal cc.

 

[AftonShepherd]

What do they charge for a personal credit card?

It's illegal to charge extra for a personal CC although some places still do. They're certainly not bound to accept it though.

 

[neilo]

If you buy store lambs on a personal credit card and one dies, can you claim from the card company?