Using Credit Cards To Fund Your Small Start-Up

Business is risky.  We all know that.  That’s why would-be entrepreneurs are often advised to have at least eighteen months of operating expenses before taking to town.  The reality, however, is that very few of today’s businesses will exist if the people who put them up are that careful and stickled to the rules as much.

If you’ve had your eye on doing your own thing for a while, using credit cards as a source of capital (especially cash-back cards) can be a viable way - albeit a very risky one - to get your baby off the ground.  Failure is always a possibility so better prepare yourself to either re-enter the job market or find an alternate source of income to pay for the debt should things not go your way.  Similarly, make sure you know what you’re getting into - a solid year or more of experience doing it part time can go a long way to increasing your chances for success.

While most banks will not loan you money for business, they always seem to be ready to give you another credit card.  Believe it or not, they’d rather send you a plastic cash substitute you can use to buy clothes, bar tabs and online dating memberships than actual money for a start-up.

Don’t wanna risk going into debt?  Then keep plugging away at your J-O-B and hope you’ll save up enough mid-year bonuses to raise that capital for the future.  If you’re willing to risk it all, though, realize that you’ll probably be working harder than you ever did in your whole life.  It’s going to be hard - but the rewards are worth it.