Credit card financing is a consistently popular way for small business owners to finance startup and expansion. In fact, four out of five small business owners today use credit cards to start or grow their businesses.
Widespread myths and misconceptions about credit card use mean that although most small business owners use credit cards for business financing, the majority aren’t using credit cards the right way. As a result, small business owners aren’t fully taking advantage of credit card financing’s potential to help their businesses grow.
If small business owners understand both the risks and the benefits of using credit card financing, they can take advantage of benefits including easy access to low-cost capital, keeping personal and business credit separate, preserving and improving their personal and business credit profiles, maintaining positive cash flow, maximizing tax breaks, minimizing interest expenses and preserving precious collateral.
When small business owners learn the truth about credit card financing, they can use it the right way to get the capital they need without putting up collateral. When done correctly, this will benefit their cash flow, their companies and the economy as a whole.