Using Credit Cards to Finance Your Business

Using Your Personal Credit As a Business Loan

At the end of the day, another way to find the funding for your business is to use your own personal available credit. Usually almost everyone has personal credit available to them in the form of the credit cards. This is considered a riskier way to finance the business since it has a higher interest rate. If you use your card for cash advances rather than to buy equipment, the interest rated can even be higher.

One way that many people offset the higher interest rate on their credit card for the purpose of using it for business startup cost is by taking advantage of low interest credit card. It is common to receive offers for low interest credit cards by someone who has a good credit history. Many of these offers can be found in personal mail. By transferring the balance from one card to another as soon as interest rate rises, a business owner can keep the risk level low. However, you need to keep a careful eye on the timeframe beyond which the interest rate is likely to rise on your low interest credit card.

While charging to your own credit card should be avoided , it is the quickest way to get the money for a business need specially if the money required is for a short amount of time and for a relatively smaller smaller amount.