As anyone who’s ever tried to start a business knows, a failed venture can lead to debt that haunts you long after the business is an unfortunate memory, regardless of where the financing came from.
That said, many small businesses can and do benefit from business credit cards, especially businesses with a track record. Those who get into trouble are more likely to be startups who use credit cards to finance a dream. While this approach has led to some of the more celebrated and inspirational entrepreneurial triumphs, it also leads to many poor outcomes that don’t make the headlines.
According to Justin, the most proper and best use of business credit cards is as a tool to manage cash flow. If there is one universal problem that frustrates small business owners, it is the tendency to have enough work to do but not enough cash on hand to finance the work until payment arrives. A business credit card can (at least partially) solve this problem, letting you buy goods today that you don’t pay for until next month. This “float” can significantly improve cash flow, making it more likely that you’ll receive payment from customers before the card’s bill comes due.
Well, for anyone who could not secure its business a venture capital then this business credit cards for business financing will definitely come to rescue. You can read more about Justin's post here.
No comments:
Post a Comment