Tag: credit cards

Starting and growing a small business requires plenty of capital. And yet, without a strong or long business history most lenders are hesitant to loan money to new companies. The result: many fledgling small businesses turn to their credit cards to finance their operations. In fact, the U.S. Small Business Administration reported that 65 percent of small business owners rely on credit cards regularly to provide working capital. The problem with maxing out personal or business credit card to finance […]

Finding enough working capital and other funding for a startup small business is often the toughest part of creating a viable company. And traditional bank loans are generally unavailable for firms with no financial history. Credit cards are available to almost everyone though and can provide easy capital to entrepreneurs. Is this a smart option for new businesses? Whether or not it is smart, it is a popular method of financing. In the National Small Business Association’s 2014 year-end report, […]

Starting up a small business requires a lot of capital. In order to meet those capital demands, entrepreneurs will often use their own funds plus borrowed money in the form of credit cards or home equity lines of credit. While these types of financing may be necessary to get the business off the ground, small business owners should establish a business credit profile as quickly as possible to save their personal credit scores from damage. Beyond just the risk of credit injury if the business fails, […]

Many small businesses contract with large companies that take the full 120-day limit to pay their bills. The result is that the small firms often come up short in terms of working capital between payments. And unless those small companies offer a product or service unavailable in the rest of the market, they have little negotiating power with the big firms. This situation makes for some tough choices for small businesses. Take a Discount These big companies will often offer payments earlier than […]