Business credit cards to get your business going

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Business credit cards to get your business going


Updated: February 3, 2020

The content is accurate at the time of publication and is subject to change.

A credit card could be a very powerful financial instrument when all other resources fail and as absurd as it may sound a credit card could be used to finance a small business during its inception stage. Many modern day businesses legends have used the credit card as a leverage to kick start their business.

Before putting this idea into action you must consider you're plus and minus points. If you have a paying job at the time of starting your business a credit card can be very effective. The income coming from your job can be used to keep up with credit card monthly pay offs, while you draw the money needed to run your business. This is one form of capital most people with jobs has within their reach. Credit card companies will be satisfied if you obey their dictums and make your payments in time and in doing so you can expect frequent raises in your credit limit.

It all looks very convenient and easy. But there are always the 'ifs' to contemplate. What if you work up a credit of 10 to 20 thousands dollars and your business fall flat on its face? How are you going to payback the balances at an interest of nearly 20%? This is not a business but personal debt and there is no scope for an escape clause. The money has to be paid back and the creditors will see to it that it is done.  The lesson is that before jumping on to this idea, you must have a payment pay back plan on your drawing board on how you are going to pay the monthly balances and where the money for those monthly installments are going to come from. Make an effort to pay little more than your monthly minimum payment on the balances.

Organize your finances in an orderly fashion. Start with maintaining a good credit record. Before starting the business get rid of other financial obligations and dues, if any. Never be late in your monthly payments and ensure you at least pay the minimum amount required and do not default a payment. Having a good credit rating may get you a 0% interest resulting in interest free credit for a considerable amount of time which may be enough to kick start your business.

By scouting for a lower interest credit card, having a sensible payback plan, maintaining a good credit rating and avoiding penalties, one may be successful in using a credit card as a financial base to start up a business.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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