Small Business Credit Cards: Is It Necessary?

Cash flow has always been one of the biggest problems in operating a small business. That's one of the reasons why credit cards are being used by small business owners.

The fact is, since most lenders are still on the conservative side when it comes to financing, the next best thing small business owners can do is lean on are their credit cards. The question is, is it absolutely necessary?

The heavy dependence of small business owners on credit cards could not be helped unless loans are available for cash-strapped entrepreneurs. From buying office supplies to those all-important heavy equipment, one might say that sky is indeed the limit. But when it comes to paying the bills, the charges it incurs would leave the small business owner almost to a level of bankruptcy. The denial of credit to small businesses have forced these owners to look for an alternative solution (i.e: credit card debt) and yet, because of the charges and delinquency, either banks would not give you a line of credit for your credit card or you would be in so much debt, it would make your head spin.

Small business credit cards are necessary but like everything else, it is prone to abuse. People say that small businesses are a boon to the economy because of the jobs it generates but where's the assistance? Small business owners also need to develop their companies and because of this, it is necessary that additional lines of credit be given. The necessity of using credit cards to fund small business' needs are only fueled by the cessation or reduction of other sources of credit such as loans. Once this is taken care of and small businesses are once again supported, the necessity of using credit cards to fuel growth would hopefully dwindle.

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