Credit cards can provide funding to entrepreneurs

By Jeremy M. Simon

Credit cards are one option for entrepreneurs looking to get their dream businesses off the ground.  Getting money for a business using business credit cards can be an important piece of the puzzle -- along with an attractive concept, solid team and a complete business plan.

Business credit cards represent a choice for any entrepreneur looking for funding.  A business credit card is probably the easiest and quickest way to get business funding, although experts warn that just because it's the easiest choice doesn't mean it's the wisest choice.

They explain that business credit cards offer generous credit lines, possibly $50,000 or more.  Additionally, many business credit cards will offer a 0 percent interest rate for the first year of purchases -- a critical time for many businesses -- before payments are due and interest begins to accrue.

Still, future small business owners should keep in mind that credit cards have higher interest rates than other types of loans.  Also, even if you have incorporated your company, almost all credit card companies will insist that you be personally responsible for the debt.

Published: August 25, 2006

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