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As the owner of a small business, I am always targeted by credit card companies that offer me large lines of credit. It is tempting to say the least and I am sure that if I were in a position where I couldn't finance my business by any other means, I may be tempted to accept their offers.

While most of us use credit cards for personal purchases, we do feel somewhat mistrustful toward the credit card company. As a result, there is an inherent hesitation to commit to further involvement with the credit card company. I have to say that on occasion, I have been offered fairly decent interest rates on a credit card line of credit. I always worry, however, that if I miss a payment, that generous interest rate could disappear.

There are other creative ways , however, to use your credit card and not feel like the credit card companies own you or your business. Credit cards can be used to fill a gap when you are experiencing a short term cash flow problem. A utility bill is due but you haven't yet received payment from a client. You are able to use your credit card to pay the bill in the interim. My only advice would be, is that as soon as the cheque comes in, make the adjustment on your credit card bill.

If you are unable to finance needed supplies in order to meet your customers demands, there is no harm in charging the costs to your credit card. This enables you to get on with the business at hand, which in turn provides you with revenue. Once you have made the sale you are again in a position to pay off the credit card company.

Being able to rely on a credit card to finance your business, is like having your own private bank. Yes, the interest rates can be high but the advantage is that you have access to funds when needed to keep your business afloat. Using your credit card for short term purposes, requires you to be diligent and careful with your accounting. Try to repay the "loan" at the earliest opportunity, preferably before the interest kicks in.

Having a credit card with a decent limit is like having a lifeline for your business. You access the funds only when they are needed to meet your customers' needs and keep your business solvent. It is prudent to have a separate credit cards for your business and personal use. Use it wisely and treat it as an insurance policy for your business.

Learn more about this author, Joan Schroeder.
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