Those preparing to start a new business have tough choices ahead. When seeking the money needed to start a business, investors are key, but what if none can be found. It is very tempting to use a credit card to get the business rolling, but without a plan, it can easily be a huge mistake.
Many people are putting $5,000 to $10,000 on a credit card to start a tech business, but this can be a dangerous road. It is essential to only use the card when corresponding payments are due from customers. Always have another way to pay for the items purchased on the card. Also, it is essential to pay off balances in full each month to avoid the high interest rates.
Try to avoid using credit cards for things like salaries and rent, and try to use the card only for supplies and or to fund short-term projects. Credit cards can be a helpful tool for a startup, but only if used wisely.