Can you fund your business using credit cards anymore?
A good time to invest in your business is when you expect it to grow. This is because your ability to pay back will become easier as revenues and profits become larger. One could argue that now is the time to make such investments given the modest rebound in economic activity. Ideally, you’d tap into your hard earned credit at the earliest moment you find opportunities to expand or when your existing business has stabilized. The vast majority of small businesses use credit cards to enable this growth. Soon, it will be more difficult to use credit cards to grow your business.
It is tough to get loans or other forms of credit, and the on February 22, 2010, the U.S. government will be making it tougher. Credit card lenders will be required to consdier an applicant’s “ability to pay”, which for a small business owner will likely be the performance of the business in the recent year. If you are like most small business owners, 2009 wasn’t your best year. For some, it was the worst. So, if you plan to use credit cards to finance your small business, the experts argue that would be best to tap this form of credit before 2/22/10.
