Many small businesses turn towards small business credit cards to finance the things that they need to stay afloat.
Vancouver, BC, Canada (PRWEB) July 25, 2011
Today small business credit cards are the number one source of funding for new startups. They are popular because they are much easier to secure than other sources of funding. From personalized stationery for the office to heavy equipment and supplies all the business expenses can be placed on a business credit card.
Unfortunately, small business credit cards can be either a blessing or a curse according to how they are managed. The current economy has no doubt had an impact on these small businesses as well and this means that they might be struggling to survive due to decreased revenues and increasing debt. More and more of the business income might go towards paying off high interest rates on multiple credit cards and small business loans.
There is also a sobering aspect to all this. According to a report published by the Herald Tribune based on a study conducted by Robert H. Scott, III, Assistant Professor of Economics and Finance at Monmouth University, West Long Branch, NJ, credit card debt decreases the chances that a new business will survive past the first three years. According to the report for every $1,000 increase in credit card debt the likelihood of survival decreased by 2.2 percent.
As it is, most businesses would not have been able to get off the ground without the use of small business credit cards. With lenders unwilling to fund new ideas much less family and friends who may be unlikely to risk any savings they have on someone else’s dream these daring entrepreneurs resort to whatever means they could to get the finances that they need. Small business credit cards are ideal since the rewards would benefit the businesses and there is less risk of the business owners ruining their own personal credit.
In spite of the negative reports on credit card debt and small businesses there is still hope. John Staymore, a leading financial expert for Small Business Credit Cards ( http://www.smallbusinesscreditcards.net/ ), “Like personal credit cards, small business credit cards should not be abused. They are the perfect solution for getting the supplies that you need for your business.” He goes on to advise, “Make the application process as easy on yourself as possible by applying with your primary bank. Never mingle personal credit with your business credit, pay off your balance on time to avoid the interest rates and never succumb to the multiple offers you will get to apply for more small business credit cards.”
According to John the reason why so many small business owners get way in over their heads is that they start by choosing the wrong program. Instead of carefully reading the terms and conditions they get drawn in by deceptive introductory offers. Small Business Credit Cards website provides only the providers with the best terms and business owners can easily compare and choose their best option.
For a quick and detailed look at the best business credit card providers and the benefits that they offer SmallBusinessCreditCards.net is the ideal resource. The number of years that they have been providing this service and their commitment to providing up to date information makes them a most trusted resource among new and existing business owners.
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Jeremy Biberdorf
SmallBusinessCreditCards.net
604-773-9876
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