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IS IT A GOOD IDEA TO USE CREDIT CARDS TO FINANCE MY BUSINESS?

May 4, 2015 1:01 pm Published by Leave your thoughts

Using credit cards to fund your business is a a popular financing option for many new business owners. But is a really a good idea?

credit card is a line of credit from which you can borrow money at any time, up to your credit limit. A personal loan is a fixed loan which you repay in equal installments for a predetermined period of time. A credit card is what’s known as revolving debt. … A personal loan, on the other hand, is a fixed debt.

There are two big advantages. The first is convenient access to revolving credit. With a credit card in your wallet, you can easily cover cash flow gaps and pay off short-term business expenses, all without applying for a loan. This flexibility can be an especially huge plus for businesses with more sporadic revenue. However, these revolving lines of credit may come with high interest costs and other fees.

Its best to explore all financing options, contact First Down Funding to find out what loan your business qualifies for.

As a small-business owner, you need access to capital to fund your business. One way to access capital is through a small-business loan. For business owners with bad credit, getting a traditional bank loan can be very difficult. However, alternative lenders offer multiple funding options for those with bad credit.

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