When starting a business, you might consider financing your startup with a credit card. What are the advantages and drawbacks?
- When used correctly, credit cards can be useful financing tools for your small business.
- Pros of credit card borrowing include maintaining control over equity, accessing inexpensive capital and avoiding collateral.
- Cons of borrowing include potential for merged expenses, credit damage, liability issues, insufficient funding and qualification challenges.
- This article is for entrepreneurs who are considering using credit cards to cover some of their startup costs.
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