Dangers of Funding Your Business With Credit Card Advances
When most people think of credit cards, credit rating, business, what comes to mind is usually basic information that's not particularly interesting or beneficial. But there's a lot more to credit cards, credit rating, business than just the basics.
One common reason that startup businesses fail is because they lack the capital to get them up and running until the business can support itself. Sadly, many people use advances from their credit cards to come up with the money. It is only natural for people who are starting a business to believe in their idea enough to take risks, but using their personal credit cards may be just a little too risky.
You have probably heard stories of wildly successful businesses that were started with advances from the owner's personal credit cards. They took their forty-thousand in advances and turned it into forty million. Well, the only reason you have heard about them is because they beat the incredibly long odds and were successful.
What you have not heard of is the thousands of owners who have tried the same thing, only to end up owing a small fortune when their business went under.
It is impossible to say what is right for all and every owner needs to make up their own mind, but it is important that every person who is considering whether to fund their business this way goes into it with their eyes open. For their long-term financial health, they need to make sure they are aware of the risks and ramifications inherent in such a decision.
If you don't have accurate details regarding creditcards, creditrating, business, then you might make a bad choice on the subject. Don't let that happen: keep reading.
Starting a business can be one of the riskiest financial decisions you ever make and the odds of surviving even the first year are overwhelmingly against you. Many new businesses never attain profitability and the owner struggles to keep them alive, much less profitable.
If your business goes under and you are unable to pay your bills as they come due, the credit card companies are still going to demand the money from you. They will not care that your business died or that you gave it your best shot, their only concern is that you pay them.
A second reason to be careful with funding your business this way is that it always takes longer to earn a profit than every new owner plans for. If you have no other income and are unable to pay this back in a timely manner, you will jeopardize your credit rating and this will have an effect on every facet of your life.
As tempting as it is to fund your startup business with advances on your credit cards, make sure you consider all of the risks and ramifications carefully before deciding to go ahead, you will be glad you did.
Aldar Nagy is the author of The Business Startup Resource, which offers new business profiles, ideas, advice, and other resources to help you when you are starting your own business. The Business Startup Resource can be found at: http://www.businessstartupresource.com. Check back often, new business profiles are being added all the time.
Knowing enough about credit cards, credit rating, business to make solid, informed choices cuts down on the fear factor. If you apply what you've just learned about credit cards, credit rating, business, you should have nothing to worry about.
One common reason that startup businesses fail is because they lack the capital to get them up and running until the business can support itself. Sadly, many people use advances from their credit cards to come up with the money. It is only natural for people who are starting a business to believe in their idea enough to take risks, but using their personal credit cards may be just a little too risky.
You have probably heard stories of wildly successful businesses that were started with advances from the owner's personal credit cards. They took their forty-thousand in advances and turned it into forty million. Well, the only reason you have heard about them is because they beat the incredibly long odds and were successful.
What you have not heard of is the thousands of owners who have tried the same thing, only to end up owing a small fortune when their business went under.
It is impossible to say what is right for all and every owner needs to make up their own mind, but it is important that every person who is considering whether to fund their business this way goes into it with their eyes open. For their long-term financial health, they need to make sure they are aware of the risks and ramifications inherent in such a decision.
If you don't have accurate details regarding creditcards, creditrating, business, then you might make a bad choice on the subject. Don't let that happen: keep reading.
Starting a business can be one of the riskiest financial decisions you ever make and the odds of surviving even the first year are overwhelmingly against you. Many new businesses never attain profitability and the owner struggles to keep them alive, much less profitable.
If your business goes under and you are unable to pay your bills as they come due, the credit card companies are still going to demand the money from you. They will not care that your business died or that you gave it your best shot, their only concern is that you pay them.
A second reason to be careful with funding your business this way is that it always takes longer to earn a profit than every new owner plans for. If you have no other income and are unable to pay this back in a timely manner, you will jeopardize your credit rating and this will have an effect on every facet of your life.
As tempting as it is to fund your startup business with advances on your credit cards, make sure you consider all of the risks and ramifications carefully before deciding to go ahead, you will be glad you did.
Aldar Nagy is the author of The Business Startup Resource, which offers new business profiles, ideas, advice, and other resources to help you when you are starting your own business. The Business Startup Resource can be found at: http://www.businessstartupresource.com. Check back often, new business profiles are being added all the time.
Knowing enough about credit cards, credit rating, business to make solid, informed choices cuts down on the fear factor. If you apply what you've just learned about credit cards, credit rating, business, you should have nothing to worry about.
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