You need some cash?We explain some ways to refinance your businesses:
Credit Card Financing

Increasing numbers of entrepreneurs have turned to credit cards to finance their business ventures in recent years. Often, these credit cards were originally secured for personal use, but credit card issuers are targeting business owners for corporate cards as well. Credit cards are one resource available to small businesses with few other options to obtain start-up capital. It is by no means a desirable means of financing a start-up. Most credit cards charge extremely high interest rates making this form of financing very expensive. In terms of using a credit card as a primary means of paying bills monthly, a credit card offers small businesses the administrative benefit of providing detailed records of all charges that may be easily transferred to an accounting process.
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Studies indicate that use of credit cards for small business purposes has surged dramatically in recent years. An online article published by About, Inc., part of The New York Times Company, states that two-thirds of small businesses use a credit card for expenses. Of these, 40 percent use business credit cards exclusively and the remaining 60 percent use a personal card for at least part of their credit card purchasing transactions. This represents a growing trend and one that has not been overlooked by credit card issuing companies.

Credit-card issuers are beginning to aggressively pursue small business owners in the hopes of selling them on corporate credit cards. According to Visa USA in a brief article in Cardline, commercial payment volume on Visa cards grew 20.4 percent in the year ending in the middle of 2004. Visa USA expects that these rates of growth are likely to continue through 2010 and they are launching a variety of marketing efforts to try and capture more of this growing commercial business. From the credit card companies’ perspective, commercial accounts have several advantages over personal accounts. They include the standard use of annual fees with commercial credit card accounts, the opportunity to establish long-term relationships with commercial customers, and the proceeds they are able to make from extra fees for multiple cards on a single commercial account.

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