Credit card and its main use within your business
30 May Credit card and its main use within your business
The credit card can work perfectly when you need to acquire some good or service at the moment and pay little by little for it. But remember that a credit card is for personal use and not for your business.
A relevant piece of information that can help you to visualize this topic is that 80% of entrepreneurs use this type of personal credit to invest in their businesses.
Businesses need more financial help than a personal use credit card can provide
Whether you need the money to buy machinery, electronic equipment, or supplies to produce the products you offer.
The size of the credit that an institution can offer especially for SMEs could be the appropriate and necessary for what you are proposing. These types of financing have been created and thought for entrepreneurs, so they offer the best possibilities for your SME.
A credit card could limit you in terms of the loan that they offer you and you would see the need to use another card to continue covering the expenses.
Being personally indebted could sabotage your credit history. And consequently when you decide to request a financing from another institution or more credits you may not receive them.
And if you are at this point, paying off your debt is the next step you must take. Sometimes it is very difficult to think about limiting your cash to pay debts and the expenses that keep running. But there is a possibility that you can acquire your debt and that you manage to pay it with less interest.
But what benefit would this give you?
First you would only have one debt. Avoiding efforts and time that you could be investing in the improvements and growth of your business.
You would have better benefits like lower interest rates and higher credits.
Greater liquidity, you would have the necessary tools to continue generating money when you organize your debts and free your lines of credit.
And last but not least, it helps your credit history. Improve your credit bureau because you would have a productive credit.
You can take charge of your finances and improve them. This is possible and if you propose it you will see good results. Remember that SMEs and entrepreneurs have many opportunities and we believe in the development and continuous improvement.