Cash flow issues are one of the most common causes of small business failure. At any point in the life cycle of your business, you are likely to need access to inexpensive working capital. A small business credit card will give you access to an affordable, unsecured line of credit to help you afford equipment and inventory purchases or give you an extra cash infusion when needed. Increasing your working capital in this way can greatly enhance your chances of long-term success.
Many cards come with attractive 0% introductory rates, but these typically expire after 12 months. Most cards offer a variable APR after the introductory period, as low as 15.99%. If you plan on using your card on an ongoing basis to manage your cash flow, choose one of these cards.
As with any credit card offer, you need to stay vigilant, as even one late payment can trigger higher interest rates. Also, many cards have domino-clauses that allow them to raise interest rates if you have a late payment on another card. So it is important to exhibit great financial discipline when using these cards.
