Finding the right source of funding for your business can be challenging.
Whether it is securing bank loans, using venture capital or angel investors, or relying on your own savings, the process can be stressful, slow, and time-consuming.
Those difficulties often lead small business owners to use personal credit cards to finance small business operating costs. Should you use credit cards to fund your startup?
The answer depends on the individual, the amount you want to use, and your ability to pay yourself back. As seen in the recent article, From Business Concept to Funding: Why Successful Entrepreneurs Think Differently, deciding whether to use credit cards is another critical financial decision for small business owners to make.
Among the advantages of using credit cards for startups are:
There are some disadvantages to consider when thinking about using credit cards to fund a small business.
Making the Decision
Before deciding whether to use credit cards for your startup business, be sure you have considered the following questions:
At Benetrends, we offer a different option. By using your existing 401(k) or IRA accounts, you can finance your startup or ongoing needs without incurring early withdrawal or tax penalties. To learn about how Benetrends can help finance your small business, download Innovative Funding Strategies For Entrepreneurs today!
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Information provided by Benetrends Inc. is not intended to be used as legal or accounting advice, or as the sole basis for investment decisions, nor should it be construed as advice designed to meet the particular needs of an individual investor. Please seek the advice of legal or tax professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
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