Why You Shouldn't Finance Your Startup Business On a Personal Credit Card
- Details
- Published: Friday, 15 February 2019
- Written by James Hills
Years ago I had a startup idea that others told me was golden ... I had clients pre-booked and I even had an industry association willing to help promote the new company. All I needed to do was present our concept publicly at an upcoming trade show, meet with people in person and start signing contracts. The only hitch is I was short on cash. Since this was a "sure thing" I looked at my credit card as a way to float the $5-10,000 startup costs. It would only be a month or two till I could pay it off I thought. Unfortunately, due to issues with my partner the company disintegrated at the show and I was left holding the bag for all those costs. Poor business planning, poor financial management, and bad luck for sure. More than a decade later I still have the scars from that decision. While I couldn't have prevented what happened, I could have improved the recovery process by consulting a company such as Lexington Law to help repair and restore my good credit faster.
Read more: Why You Shouldn't Finance Your Startup Business On a Personal Credit Card