You dont have to have investors or a traditional business development bank loan to start your own small business. If you own a home or have the credit to open revolving credit card accounts, your small business financing could be a reality.
The secret to using credit cards for small business financing is to open the credit cards under the business name. If you have business credit cards, the IRS allows the deduction of every single penny of interest from those credit cards.
David Newton is a professor of entrepreneurial finance at Westmont College in Santa Barbara, California. He says there are basically two ways to use credit cards to finance a small business: 1. Asset acquisition such as purchasing equipment and supplies, and 2. Cash on hand as capital. He does; however, consider credit cards as an extremely risky way to finance a small business
The use of credit cards should be replaced as soon as possible by more traditional bank financing and/or leasing arrangements, once the firm has reached the break-even point and monthly sales receipts can cover normal COGS (cost of goods sold) and overhead expenses.
A more traditional approach is the...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
