February 23rd, 2008 | 
Author: 
Thomas Ajava asked:
Small businesses are the pillar of our modern economy. Given this, it is a bit of a surprise it is so difficult to get any financing when you are just getting up and running. Still, this is the facts of life and so most people look around for alternative financing. In some cases, that means personal credit cards.
Is using a credit card to fund your business a smart move? It certainly is not ideal, but sometimes you have to do what you have to do and that means hitting the plastic. If you decide to make this move, it is vital that you sit down and think it through. You also want to do the following:
Know Your Rates
Figure out the real rates on your cards. Then prioritize which ones you should use. The stated interest rates are obviously the key, but you want to look at the rates associated with cash advances as well since you will probably be going in that direction. Know the costs!
Pay On Time
Paying any credit card on time is critical. No, I am not talking about the impact a late payment can have on your credit. Instead, I am talking about cost. If you miss a payment, your interest rates will go through the roof. This is an area where credit companies make big, big money, so don’t fall foul of the payment requirements.
Don’t Get Addicted
Explore other options. For example, your supplier or vendor might offer a business line of credit which will charge a much lower interest rate or no interest at all. Business owners tend to get addicted to easy credit and now look for alternatives. Given the high, high rates on cards, this ends up costing them huge amounts of money. Don’t be an addict!
Finally, it is vital that you not only kick the addiction of credit cards, but find alternatives as soon as possible. It is hard to think of another form of credit that presents such poor terms as cards, so getting off them as quickly as possible will save you a bundle of money.
Line Of Credit Loans
Small businesses are the pillar of our modern economy. Given this, it is a bit of a surprise it is so difficult to get any financing when you are just getting up and running. Still, this is the facts of life and so most people look around for alternative financing. In some cases, that means personal credit cards.
Is using a credit card to fund your business a smart move? It certainly is not ideal, but sometimes you have to do what you have to do and that means hitting the plastic. If you decide to make this move, it is vital that you sit down and think it through. You also want to do the following:
Know Your Rates
Figure out the real rates on your cards. Then prioritize which ones you should use. The stated interest rates are obviously the key, but you want to look at the rates associated with cash advances as well since you will probably be going in that direction. Know the costs!
Pay On Time
Paying any credit card on time is critical. No, I am not talking about the impact a late payment can have on your credit. Instead, I am talking about cost. If you miss a payment, your interest rates will go through the roof. This is an area where credit companies make big, big money, so don’t fall foul of the payment requirements.
Don’t Get Addicted
Explore other options. For example, your supplier or vendor might offer a business line of credit which will charge a much lower interest rate or no interest at all. Business owners tend to get addicted to easy credit and now look for alternatives. Given the high, high rates on cards, this ends up costing them huge amounts of money. Don’t be an addict!
Finally, it is vital that you not only kick the addiction of credit cards, but find alternatives as soon as possible. It is hard to think of another form of credit that presents such poor terms as cards, so getting off them as quickly as possible will save you a bundle of money.
Line Of Credit Loans
About Wade Henderson
Wade Henderson: Domestic and International Business Finance since 1995 specializing in challenge situations. "We prefer to find a way to get your loan done as opposed to finding a reason to turn it down.” Connect with me on Google+
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