You can receive a free newsletter by e-mail. More small firms than ever use credit cards to finance their operations. Once upon a time, entrepreneurs turned to Aunt Emily and Uncle Bob when they needed cash. These days, plastic probably is your best friend. Nearly half of those surveyed said they used credit cards financing during the previous 12 months, up from just over one-third in 1997.
Credit cards are now the preferred means of entrepreneurial finance.
That fact is enough to make financial planners like J. Randall Hedlund of Financial Management Consultants in Overland Park, Kansas, wince. The money you pay out in interest could be used elsewhere in your business. If you're a homeowner, you're much better off getting a home equity line of credit. You'll also miss out on establishing a relationship with a banker. The sooner you have a banker in your corner, the better.