According to the SBA, 65 percent of small businesses regularly use credit cards. Despite credit card debt having a bad reputation, using a card for funds isn’t always a bad thing if you keep an eye on your card balance and use credit responsibly. To build, manage and understand your personal credit scores, follow these suggestions on the SmartBiz Small Business Blog: Build and Manage Your Personal Credit Scores.
If you’re considering using a credit card to fund business expenses, review our list of pros and cons to help you make the right decision for your situation.
Late fees – If you pay a credit card bill just one day after the due date, you could be charged a late fee as much as 25 or 35 dollars. Additional late fees pile on if you continue to miss your due date. Additionally, your interest rates may rise.
If you find yourself struggling to make payments or put a dent in expensive credit card totals, debt consolidation might be the right option. If you’ve kept your credit scores healthy, look into low-cost funds like an SBA loan to pay off or consolidate high-interest debt. Learn more about SBA loans on the SmartBiz Loans® website: SBA Loans for Debt Refinance
If you need funds to sustain your business or spark growth, your best bet is a low-cost loan. SBA loans have low-rates, long-terms and very low monthly payments.