Credit Card Financing: Proceed With Caution

One potentially risky way to finance your business is to use your personal credit cards.

The obvious drawback is the high interest rate; if you use thecard for cash advances rather than to buy equipment, the rates areeven higher.

Some entrepreneurs take advantage of low-interest credit cardoffers they receive in the mail, transferring balances from onecard to another as soon as interest rates rise (typically after sixmonths). If you use this strategy, keep a close eye on when therate will increase. Sometimes you can get the bank to extend thelow introductory rate over the phone.

Experts advise using credit card financing as a last resortbecause interest rates are higher than any other type of financing.However, if you are good at juggling payments, your start-up needsare low, and you are confident you'll be able to pay the moneyback fairly quickly, this could be the route to take.

Excerpted from Start Your Own Business: The Only Start-Up GuideYou'll Ever Need

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Business News

'This Made Me Physically Recoil From My Phone': Lingerie Brand Apologizes For 'Creepy' Ad Referencing Ryan Reynolds and Bras

Online lingerie retailer Harper Wilde is under fire for a bizarre sponsored post it has since pulled from Instagram.

Business News

The Scam Artist Who Robbed Backstreet Boys and NSYNC Blind. 'Some of the Guys Couldn't Pay Their Car Payment.'

In the 1990s, Lou Pearlman made millions creating the Backstreet Boys and NSYNC. It was all a giant Ponzi scheme.

Business News

Viral Sensation 'Popcorn Guy' Has Earned a Gig at the 2023 Oscars

Jason Grosboll first went viral on TikTok for his theatrical method of buttering popcorn in a Texas movie theater.

Making a Change

Babbel Can Help Make Business Travel Much Easier in 2023

With more than 10,000 hours of content, you can learn to speak any of 14 new languages with this premiere learning system.

Thought Leaders

5 Small Daily Habits Self-Made Millionaires Use to Grow Their Wealth

We've all seen what self-made millionaires look like on TV, but it's a lot more subtle than that. Brian Tracy researched what small daily habits these successful entrepreneurs adopted on their journey from rags to riches.