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In
today’s credit market, loans to fund small businesses are less available,
forcing entrepreneurs to reevaluate available financing options. Many small
business owners are turning to credit cards to finance the start-up of a
business or everyday expenses.
Credit cards offer the
benefit of instant credit and many also provide businesses with no pre-set
spending limit. You can also easily separate business and personal expenses,
while earning rewards towards airline tickets or other items. When employees are
spending company funds, issuing a company credit card also makes it easier to
track their expenses.
While credit cards offer a
variety of perks, small business owners are cautioned. Credit companies reserve
the right to increase interest rates and change terms at any time. If you carry
a balance month-to-month, interest rates can rise to over 30%, adding a
significant interest expense to your budget.
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