Using Personal Credit Cards Instead of Business LOC
	If you are a startup or small business that does not qualify for a traditional business line of credit then you may want to consider using your personal credit cards as an alternative method of financing the business purchases you need. This is often one of the most commonly used tactics when financing a new startup venture or small business. However, it does have its drawbacks. Personal credit cards often carry interest rates that can range anywhere from 7% to 29%. As such, you will be paying a significant amount of money in interest each month for the purchases that you make with your personal credit cards. Most Business LOC carries interest rates in the range of 7% to 15% depending on your personal credit, the length of time that you have been in business, and the collateral securing the credit facility. The positive aspect of using credit cards in lieu of traditional business credit is that these are unsecured loans. There is no property securing the underlying debt that you are accepting. However, as with any credit facility, you will be held personally liable if the business does not work. Additionally, as you rack up balances on your personal credit cards – your credit score will go down. While the same holds true for business loc, it does not tend to do so to the same extent. Using personal credit cards can make it more difficult to apply for additional credit facilities in the future if you continue to hold balances on these accounts. If you do decide to use personal credit instead of business credit then you should dedicate the cards you are using to business activities only. Most business advisors recommend that if you decide to go down this road that you always segregate your accounts so that personal purchases and business purchases are not made on the same credit card. This will make life easier for you, your accountant, and if you are audited then you then you can clearly show that that your personal credit has been used for business purposes only.
	Below are a number of articles that you can read that will assist you in obtaining a business LOC:
	Business LOC vs. Business Loan Securing a Business LOC Do You Need a Business Plan to get a Credit Line? How has the Economy Affected People's Ability to get Credit? Unique Business LOC Types Property Rehab Loans and Lines of Credit What is a Warehouse Line of Credit? Businesses Best Suited for a Business LOC Alternatives to Business Credit Facilites Using Personal Credit Cards Instead of Business LOC The Mechanics of a Business Loan The Mechanics of a Business Line of Credit Importance of Establishing a Business Line of Credit Using a Business LOC for Startup Capital Questions That Will Be Asked By Your Banker The Importance of Personal Credit When Obtaining a Business LOC What is an SBA Backed Business Line of Credit? Determining How Much You Can Borrow Through A Business LOC How a Business Line of Credit Should Be Used Comparing Offers from Banks for Business Lines of Credit Business LOC and the Concept of Leverage Secured Vs. Unsecured Business Line of Credit Using a Business Loan/Credit Line Brokerage Repayment of a Business LOC Commonly Used Terms in Lending Using a Small Bank to Obtain a Business Line of Credit New Business Line of Credit Business Revolving Line of Credit Overdraft Line of Credit Small Business Lines of Credit Accounts Receivable Backed Lines of Credit