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How does using my credit card free up my cash flow for 25 to 55 days?

Updated over a year ago

When you use a credit card to make a payment, your receiver still gets paid on time, while you defer the actual outflow of your cash until your card bill is due. This lets you gain up to between 25-55 days credit period depending on the card issuing bank.

How does it work? The deferment period is depending on 2 factors:-

1. The billing cycle of your credit card

2. The grace period given by your credit card/bank issuer to remit the payment.

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