Credit funding and its pitfalls
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Wendy Fergerson was able to get her business Integrated Printing Solutions off the ground by using large infusions of borrowed money, up to $60,000 a month in her first three years of operation.
Keys to her success included a sterling credit rating and a steady business revenue that allowed her to pay down credit card debt immediately without interest.
As mentioned earlier this month, a couple of important points must be considered when funding your business with plastic. They include:
>• Keep business and personal cards separate. Don't use your personal cards to pay for business expenses or you will put your personal credit at risk
• Resist the allure – don't get too many credit cards. Limiting yourself to one or two cards for your business makes tracking spending easier
• Know your credit history. Making sure your credit report is correct and up-to-date could make the difference not only in whether you get the card or not but at what rate.
Read the rest of Wendy's story here and continue with the next installment of the Kauffman Foundation bootstrapping series next post…
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