When you’re thinking of ways to get your business off the ground, you may be cringing at the idea of endless loan applications and the interminable waiting period to see if you’re approved. If you’re racking your brain trying to come up with a different route that doesn’t require so much time and hassle, you may be ready to consider using a credit card to fund your business.
Paying for your business capital using personal or business credit can have some huge perks, especially if you’re on top of making your payments and have a lucrative business. However, as great as the advantages are, there are also some weighty drawbacks to consider. Read on to see how these pros and cons measure up, so you can choose if this method is going to help or hinder you in the long run.
Why You Might Use a Credit Card
There are a number of reasons one might consider using a credit card as business funding. First, if you’re at the very outset of your venture, you may not have the credit score or business assets to qualify for a small business loan. But if you happen to have a credit card with a reasonable limit, that’s quick access to funds with no need to apply for a loan.