Posted on September 20, 2019 at 7:28 AM
The thing that is often questioned when starting a business is “where does the capital come from?”. Don’t worry, you can get a credit card for business capital in a short time.
To stay safe, you should learn the following tips if you rely on a credit card for business capital. Let’s look at the full discussion below.
6 Ways to Safely Use a Credit Card for Business Capital
When starting a business, business people who do not have enough stock to start a business will make loans to get their business capital.
In addition to the closest family, the Bank often becomes the choice to get business capital even though it has to take care of a number of administrative requirements and requires no instant time.
But it turns out, nowadays many people use credit cards as a source of capital gain, because funds can be obtained in a short time.
Even though it is unfortunate, behind this convenience there are endless debt and interest entrapment traps.
Then, what is the solution? So as not to get caught up in prolonged debt, consider the following tips so that the business remains safe even if you rely on a credit card.
Mature Calculation of Capital
In addition to channeling ideas and finalizing concepts, capital is also one of the important factors in carrying out the wheels of doing business in any field.
Usually, the closest family is a mainstay to help fulfill this capital but not a few who take steps to apply for loans to other parties such as the Bank.
However, before applying for a loan you should first carefully calculate the amount of capital needed. Don’t overdo it when applying for a loan. The risk is that the interest is getting bigger and the installment time is getting longer.
Large funds injections do support you to grow your business to a larger scale. If you are ready with all the risks, it doesn’t matter.
But it is recommended, make sure the details, do not let an error occur and the interest must be paid to swell.
Measuring Your Self Ability
After you know the amount of capital needed, it certainly makes it easier for you to measure your abilities. The ability in question is the ability to pay capital loans.
The new business is usually not stable, so this is what you need to consider, especially if you are applying for a large loan, it’s too risky.
In addition to calculating capital loans, do also calculate turnover every month.
After you know the description of the amount of turnover and the costs to be paid each month, then from these calculations you can determine how much installments that can be paid.
That way you won’t have a problem to fulfill your payment obligations every month.
Consider Interest Rates
Realistic thinking is needed for things like this. Do not be easily tempted by the amount of capital that can be obtained, but ignore the interest charged.
It would be better if you look for creditors with offers with interest rates that are still reasonable, one of the keys is to find as much information as possible and make comparisons with other credit cards.
Dig Information in Detail
Digging detailed information on each credit card is your obligation so that you don’t go wrong. For example, the credit card limit issued by each bank must be different, there are even some facilities offered in it.
Because the orientation of this credit card is for business capital, then look for a large credit card limit.
However, getting a credit card with a large limit is not an easy thing. At least the loan history you have must be healthy and there is no risk of default. In addition, you also need to know very well about these credit card products.
Get Rid of or Pay Minimum Bills
Loans on credit cards are slightly different from loans in general at the Bank, because it is important for you to know the technical payment between the principal and the loan interest so that there are no calculation errors.
Regarding credit card debt, you must pay the full amount used last month. If you can’t pay, you can pay it according to the minimum bill. But the interest will continue to grow, you know, until the debt is fully repaid.
Pay Right on Time
It is important to make payments on time, because if you are late in addition to the loan interest you must pay a fine that is not small in number.
So as not to forget, make a reminder or you can also make automatic payments that are synchronized in a personal account so you can avoid delays that lead to fines. Surely this is detrimental …