Running a business can be one of the most rewarding undertakings in modern life. But it comes with plenty of headaches.
There’s managing inventory, equipment and employees — not to mention keeping clients happy. With so many balls to juggle, maintaining tidy finances can understandably fall from the top of many business owners’ priority lists.
There is always the temptation to take the seemingly simplest path when it comes to making purchases or financing growth. Sometimes that means looking to use a personal credit card for business expenses. And while a personal credit card might offer a quick way to make a major business purchase, it presents a host of drawbacks.
For one, it usually means mixing your personal and business finances — a move that almost any entrepreneurship expert will tell you is a recipe for disaster.
But perhaps most concerning is the fact that putting a major business expense on your personal credit card greatly increases the chances that you’ll pay huge financing charges. Because you aren’t required to pay back the expense over any particular time frame with credit card, there is a good chance the debt will sit there longer than you anticipate, accumulating interest at an extremely high rate the whole time. Even with the best intentions, it can be easy to push back paying off credit card debt because unexpected business expenses invariably arise and strain your business cash flow.
That’s why we always recommend that business owners investigate an alternative lender like CapFusion before putting any major business expense on a personal credit card. We understand that time is often of the essence in these situations, which is why we’ve developed a loan application and approval system that can get cash delivered to your account in less than a week.
What’s more, we use a payback system that takes a small amount from your business account every day, ensuring that the loan doesn’t stress your weekly cash flow and that you are able to pay off the loan in a timely manner, thus avoiding the huge financing charges you’d see with a personal credit card.
Before you use a personal credit card to fund a business expense, contact us today. We think you’ll see the advantages of a CapFusion loan.