For startup entrepreneurs having an really difficult time raising capital for their project, borrowing against business credit cards becomes a very real temptation; and sometimes, it is the only option immediately available.
The caveat is that if you do not manage your business credit cards wisely, you may end up failing in the business that you have long wanted to establish. Without proper management, the debts that you incur from business credit cards will just begin to pile up out of control.
Business credit cards are very convenient to use.
The moment you get approved for business credit cards, you get a guaranteed credit line that you can use virtually anywhere, anytime you need it. In spite of not having the cash, you can purchase what you need for the business with your business credit card.
The convenience that business credit cards provide can also be the downfall of your business credit and business. Knowing that business credit cards can be dangerous does not mean to say that you should not use business credit cards to grow your business.
The key thing in reducing the danger is to use the business credit card with boundaries.You might be too excited about a new business and get carried away about making more money and having a better life.
But wait! Have you ever considered your fallback options should things not work out as you expect them to? Remember that filing for bankruptcy is no longer an good option; the bankruptcy laws have been amended recently, and it is more difficult now for debtors to escape creditors in this way.
There is a way to avoid the debt trap. You should keep track of purchases you charge to your business credit card which you can easily do by logging onto your account at the business credit card issuer’s website. You should then work out your payment plan in advance by estimating your cash flow per month, and using this figure to calculate how much you can afford to pay against your business credit card debt.
Pay off the entire business credit card balance as often as you can afford to. If that becomes difficult to do, try to pay more than the minimum required payment for each month. This is the only way you can stay ahead of finance charges and the very painful bite of late payment fees and default APRs.
Unless you removed your personal guarantee or don’t have one to begin with.Anything that happens to the business credit card account will have repercussions on your personal credit report. It is necessary to sit down and do comparison shopping when it comes to business credit card rates.
You must educate yourself about how you can use the float period on purchases, the fees for cash advances and late payments, over credit limit charges, balance transfer fees, and penalties for late payments.
Then, there are also the annual fees: some business credit cards charge annual fees while others do not. There is a lot of information about business credit cards online. Manage your business credit cards well, and they will help you finance your business.
Don’t and you can ruin your business completely and go bankrupt in no time. The choice is yours. If your in need of business credit get some here
Also if you’re in need of business funding like a loan then here is a Link for that too.
Thanks for checking out the blog.
Its the man the myth
The Wealthbuilder himself
Signing off for
The bad side of business credit cards.
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