We can all agree that starting a business is difficult. It becomes even more difficult if you don't have money to finance the startup phase. Some entrepreneurs are fortunate to have angel investors or have friends or family who provide access to money, but most are alone. Using credit cards is an available option for financing your business. Traditionally an entrepreneur applies for a bank loan to obtain financing to finance the startup phase, unfortunately banks usually refuse them. A simple option instead is to use credit which provides quick and easy spending ability for a new and growing business. There are good uses of credit cards, but there are also disadvantages. Careful use of credit cards can make them attractive as an option. First, some benefits of using credit cards to finance business operations: • It is easier to obtain funds • On-time payments improve credit scores for business owners and the business • There are rewards and benefits such as discounts on gas, airline miles, cash discounts. • Record keeping is easier. It helps the owner separate and identify his or her personal and business finances, track employee expenses, reduce time spent on checkbook balances, and simplify financial reporting. These are the disadvantages of credit cards that will hurt any business. It is important to avoid the pitfalls at all costs: • Your personal credit will often be tied to the company's ability to access credit. Make sure your personal credit is in order before applying, and also know that any negative aspects of credit cards (such as a late payment) will have a personal impact on your credit score. • Rewards are overemphasized. While it's nice to get 1% cash back on all purchases, if you overuse your... paper card......ss. • Check your credit cards to see if they have baggage insurance, employee expense tracking, or access to airline clubs and concierge services. Take advantage of all the advantages. • Take advantage of zero% interest balance transfers and introductory periods with no interest charges. • If you have multiple cards, use the one best suited to the transaction. For example, airlines often give double or triple points for spending with their airline, encouraging you to use their card to book travel with them. Businesses need financing and credit cards are the easiest solution. Credit cards are very useful for any start-up as long as the entrepreneurs are equipped with what these plastic cards can and cannot give them. While not a good long-term financing solution, they can provide month-to-month liquidity for you and your business.