Nobody ever thinks of this but its easy

[CreditCardWave]

Most people are always trying to go the loan route when getting capital or financing for a small business. I had started a vending business and basically got started and financed it with a Business Credit Card.

I was approved in seconds and it basically was at 0 percent interest for the first year. I bought all of my supplies, machines etc. with this card. It had a nice credit limit, probably more than if I had gotten a loan and gave me a guarantee on my purchases against fraud etc. which a loan will not do.
There were many advantages to getting a business credit card over a business loan. It is just not an option most people think of or they are afraid of the concept but actually it is a smart way to go.

Have a good one.

[davidpcrawford]

Wow. You need to learn something about marketing.

[CreditCardWave]

So what is your point? Your statement doesn't make sense.
I hope you are just not spamming.

[Spider]

I couldn't understand David's post, either, Steve. I think you are right on the mark with your suggestion. In fact, there are so many ways a starting-out-business can get financed, it's amazing.

One I like and have used is to have the landlord of your intended business location do the build-out. Here's how I got them to do it--

1. Landlord will quote his terms, let's say $1,500/month for a 2-year lease, tenant to do build-out.

2. I figured build-out would cost $10,000, which would cost $320/month to repay if I borrowed $10,000 for 3 years. (This would bring my monthly cost to $1,820/month for the first few years.)

3. I offered the landlord a 5-year lease with $1,350/mo rent for the first year, $1,600 rent for the 2nd and 3rd years, and $1,900/mo for the 4th and 5th years.

4. Total rent for 5 years would cost me $100,200, but my first year outlay drops from $1,820/mo to $1,350/mo. and 2nd and 3rd year to $1,600/mo rather than $1,820/mo.

As opposed to $100,000 total in the original plan if the rent remained the same for 5 years (rather than 2) which is unlikely.

The landlord loves me because he gets a 5-year lease instead of a 2-year lease, and he has a long-term tenant with locked in rent increases, and I get lower porperty cost for the first few years while I am developing my business, plus the benefit of knowing what my future property costs are going to be.

And I didn't have to take a loan to get started.

[justgowithit]

While I'd agree that credit cards have their place in the business finance world, there are two sides to every coin and financing a business with a credit card takes a great deal of discipline.

A new entrepreneur can wind up in a heap of trouble when that first year of "free" interest expires and they're stuck revolving the interest on a maxed-out account.

[pete]

Golly Steve, I had the idea you were spamming, seeing as how you promote cards and then tell us how great they are?
.

[mstaples]

The most important thing any entrepreneur needs - before deciding on what type of financing options to pursue - is a detailed, well researched, logical long term financial plan for the business.

If, after examining all the potential expenses for the first several years of business activity, it seems evident that only a few thousand dollars worth of operating capital will be sufficient to move from the development stage to the profit generating stage of the company (actual profit - not just revenue) then it would be reasonable to consider taking advantage of a business credit card with grace period.

However, similar capital can be gained through confidently approaching friends and family - who rarely bankrupt you for running over a grace period.