Think twice before slapping down that credit card to cover costs at your new business.
The high cost of plastic credit can drag down growth at a young firm and increase the chance that it will fail in its first three years, according to a study conducted for the Ewing Marion Kauffman Foundation.
For every $1,000 in unpaid credit card debt, a start-up business increases the probability that it will close by 2.2% on average compared with having no such debt, economics researcher Robert H. Scott said in a report released this month.
Credit cards are hard to control even for personal uses. How much more if you use it for your business. Well, above is a study I have read over at Los Angeles Times. I believe we should all check out the article before jumping in to an idea of financing our business using our credit cards. Check out Financing your firm with a credit card? Bad idea.