With today’s financial uncertainties, how should business owners approach using credit cards? Will they actual help or provide an opportunity to get burned?
In this encore presentation, co-host D. Scott Smiths share important business perspectives on credit and cash flow, credit “equity”, working with spouse, and more. A discussion about survey numbers on what it takes to successfully start a business with credit card funding.
This is practical, with the goal of commutating how to be smarter with your business credit.
And by extension, managing your SBA loans.
- Have a plan on how you will use your credit card.
- Leverage equity or credit equity is ‘what value is left over after loan is paid off’
- Charges should be used to grow revenues. Watch and adjust your debt-to-revenue ratio to keep it low.
- Good paperwork and book keeping is essential be preventing paying credit card fees.
- Good communication with spouse on business finances is key. Work out differences with your spouse long before any inevitable problems arise.
Old Business Wisdom
- ” Be thou diligent to know the state of thy flocks, and look well to thy herds. For riches are not for ever…”Proverbs 27:23
- “…the borrower is servant to the lender.” Proverbs 22:7