Credit cards for Business Financing
While the use of credit card for retail purchases is common, credit cards could also be used to provide finance for setting up in business.
Although the more traditional way of obtaining finance for a business enterprise is through a bank or family members and friends an alternative way could be through the use of credit cards. While this is an expensive way to finance a business start up there are instances of entrepreneurs who have resorted to this method to finance either all or part of their business set up. For example it has been mooted that the founders of Google used their credit cards to purchase computers, office equipment and peripherals.
It is conceivable that a credit card holder may hold three to five credit cards with a credit limit totalling say £15,000 to £20,000. If the would be entrepreneur/s wasn’t/weren’t able to obtain funding elsewhere than using the motto “where there is a will there is a way” they could get their business idea off the ground using their credit cards.
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