Using a Small Business Credit Card To
Get Start-up Capital or a Temporary Cash Infusion

If you need money to fund a new business or a temporary cash infusion for an existing business, your best choice may be a 0% balance transfer credit card. With a 0% introductory annual percentage rate, these cards effectively give you an interest-free loan for as long as 12 to 15 months.

As your revenues start flowing, you can repay these inexpensive lines of credits before they convert to higher interest rates. Once you establish a regular payment history with the card issuer, your credit line will likely increase, giving you even greater financial flexibility.

You'll need to read the fine print, though. Some cards only give the 0% rate for balance transfers, while others will only give it for new purchases. Also, you have to be careful not to make a misstep, such as a late payment, which could trigger a higher rate. If you're transferring a balance, be wary of transaction fees.

Look for cards that offer additional benefits, such as cash back rewards, travel-related rewards, and free expense reporting. If you will need to use the credit line on the card on an ongoing basis to help manage your cash flow, be sure to choose a card that provides a low fixed APR once the introductory period expires.