Alternative Financing Options For Startups

When using credit cards, practicing self-discipline and common sense will allow an individual to use the cards as an advantage (Lynott, 2008). Advantageous tips are to limit the number of credit cards to two for personal use and two for business, charge only what you can pay off at the end of the month because that is interest-free, carry cash to pay for small purchases because they add up quickly on a credit card, become knowledgeable about the interest and additional fees and penalties, and focus on items that are needed and not just wanted (Lynott, 2008).

par. 3). Start-up capital plays a vital role in putting up a business. How are the owners will operate the business without the finances? How are they going to pay all the expenses like salaries, taxes and materials they need for the business without the money? There are several ways on how to finance the business. Canada Business Network (n.d.) enumerates these ways like government grants, private sector financing, financing from non-government organization, equity financing and personal assets (par. 1). In Canada, there is a government owned financial institution that supports the finances of small businesses which is called The Business Development Bank of Canada (Williamson, 2008, p. 33). Most small business owners do not realize that there are several pathways to finance their businesses that’s why they end up frustrated and unsuccessful. It would be beneficial for the small business owner to know that there are resources available for

Consumers use credit cards for numerous reasons. Those reasons are: the earning of cash back, safety, points and frequent-flyer miles, universal acceptance, and to build credit (Investopedia.com). Credit cards can allow for cancelations a payment on a service that did not meet the expectations of the consumer, which is really beneficial. However, consumers own a few too many credit cards that all have different interest rates. The reason credit debt is so astronomical, is because consumers are paying the required minimum payment

In the case of credit cards, they can do irrevocable damage if not handled in the proper manner. If you tend to be an impulse buyer, they provide access to buying power that might exceed what you can actually afford to spend. After rolling up large debt balances, the monthly interest charges can become financially debilitating, especially if you get in the habit of making minimum payments. If you make late payments or miss a payment or two, your credit score is subject to a material hit, which compromises your ability to secure credit in the future. Finally, the stress you might experience as your debt troubles related to credit cards start escalating have the potential of causing you both mental and emotional hardships. The bottom line is you need to avoid credit cards if you can't handle them responsibly.

Trade credit is one of the easiest types of credit out there. It is a perfectly valid way to develop your small business’s credit score and improve its reputation. Basically, this means you work with your regular vendors about altering your payment terms. Find out if your coffee provider, or the place where you purchase toner or plumbing products will give you better payment terms. These are like small loans, where you get an additional month or more to pay for your regular essentials.

Many people have great ambition to make their own way by starting a business of their own. However, due to perhaps a protracted illness or even a bankruptcy, their credit isn’t what it should be. This very fact would deny them access to a regular bank loan and therefore, to traditional financing options.

However, they are extremely controversial. People tend to have extremely strong opinions about credit cards. On one side, we have those who vehemently criticize credit cards as the modern evil that has brought financial ruin to so many Americans. At the other extreme, we have those who see credit cards necessary instruments for establishing and improving one's credit history and for learning financial restraint ("Credit cards," n.d.). So, which side is correct? Do credit cards spell financial doom or are they a useful and valuable tool in our society today? In order for us to honestly answer these questions, we must fully understand the advantages and disadvantages of credit cards. First, think about some of the possible advantages of having credit cards. The first thing that comes to my mind is convenience. Credit cards are so tiny that they can easily fit in your pocket. Also, most places readily take credit cards these days. And we cannot forget that credit cards can minimize our need to count money at the cash register or to wait to buy that must-have product until we get our next paycheck. Therefore, it is accurate to say that credit cards are relatively "convenient to carry and use" ("Credit cards," n.d., Pros section). Moreover, credit cards are accepted in quite a number of foreign nations, making traveling or online purchases a whole lot simpler. Credit cards also give you much more peace

There is one trick to get a high credit limit on your credit card even with a limited credit history – apply for a small business card instead of the personal credit card. You will be surprised with high credit limits that are unreachable for you with your fair credit history. A starting limit of $10,000 is a norm for a business credit card, when people with low credit rarely get a limit of $1000 on a personal credit card.

When you use a credit card, it is just a form of plastic money that you can spend even if you don’t really have the money for it. Having this mindset when purchasing goods is bad because it leads to credit card debt that you will be so far in its near impossible to pay off. As long as you are responsible with credit cards then it is a good thing to have.

There are college students who get credit cards for the right reason and there are some who look at it as a way to get a little extra money. A lot of credit card companies target college students by using promotional offers such free t-shirts, cups, and many other items. Plus most college students are big spenders so they will definitely get there money worth. A lot of college students look at this opportunity to establish some credit. For the ones who don't have a stable job it will be pretty hard for them to make payments on time. It really doesn't matter if the student can afford to pay it or not because credit card will simply charge additional cost to customers account if they fail to make their payments. Either way the credit card company

Another drawback of using a credit card is that some players can easily lose control over how much money you spend, so be sure to exercise self-control and keep you playing habits in check.

Given this, you should really tackle developing your business credit. Improve and maintain your scores and you will have these possibilities. Do not, and either you do not get these business opportunities, or they will cost you a lot more. And no entrepreneur wants that. You need to understand what affects your small business credit before you can make it better.

There are several pros and cons of using a credit card and all of them need to be considered before deciding to actually apply for a card. One aspect is that having a credit card can effect your credit score, but how you use the card can determine whether that effect is positive or negative. It is important to try to build your credit score especially when you are young, but abusing a credit care can have even more of an impact later in life. Being late on payments, having too many card accounts open, or being close to your spending limit can cause your credit score to decrease, which could make it harder for you to get loans later in life for things such as a new car or a mortgage on a house. Also, it can be tempting to only pay the minimum balance each month, but doing this can greatly effect how much you are actually paying after the interest rate is applied. On the other hand, many credit cards now offer rewards for using their card such as frequent flier miles or cashback. These can be great benefits for card users but these even these rewards cannot outweigh potential issues if the card is misused.

This paper investigates the financing process of tech startup firms, their potential financing sources, how they make financial decisions and how they build the capital structure, with special emphasis in Chinese entrepreneurs’ perspective. The applicative of pecking order theory in tech startups financing. China has a fast growing economy, which tech startups contributes a lot. This research can provide a better understanding of entrepreneurs’ financing strategy.

initiative is to attract outside capital, given the lack of collateral and sufficient cash flows and the