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Should You Use a Credit Card to Finance Your Startup?

2 pointsby mchang16about 17 years ago

5 comments

Readmoreabout 17 years ago
No, no no no! Not even if it is at 0% interest. I've done this, I'm still paying it off, don't do it.
评论 #161261 未加载
thoraxabout 17 years ago
Very interesting to read the responses here. They aren't at all what I expected to see on this particular site.<p>I personally know two very successful 'exited' entrepreneurs that would never have had their companies acquired if they didn't rack-up an insane amount of bonus miles on those early startup credit cards.<p>My belief is that if you <i>absolutely</i> believe in your startup, you should be willing to get essential funds anywhere legal on reasonable terms, especially if the amounts are in the magnitude of $25,000-30k of debt. Clearly you shouldn't <i>start</i> borrowing on credit cards, but doing some financing on the credit card when things are tight and failure is the only alternative... It's a no brainer to me, and it's part of the reason I've stayed out of debt my entire life, so that I have that extra flexibility if it is ever needed.<p>$25,000 in equity early on is going to cost you a lot more down the line, if you truly believe your startup will be successful.<p>I think it's great to hear people who have learned so solidly not to use credit cards. But when the chips are down, what is an entrepreneur but someone who takes calculated risks for things they believe in?<p>Do what you must to keep your dream alive. If it can't succeed, quit, but if it <i>can</i> and <i>should</i> succeed, a successful entrepreneur will do what they need to do to make it happen. There isn't a "no" or "never" in that equation.
mchang16about 17 years ago
There are so many other ways to finance a start-up, that this should probably be the LAST option...and it's so high-risk that if you can't get money another way, you might want to wait until a better idea comes along that you can get someone to finance.
noodleabout 17 years ago
imo, no, unless you're doing the 0% APR across credit cards dance. there are just too many other, cheaper ways of getting a little bit of money.
reynoldsabout 17 years ago
We do a ton of stuff on our credit cards, but really only to scale an already profitable campaign.