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Since time immemorial, we often hear the adage, "Cash is King" and as it is true then, it is still true today, "Cash is Still King", but credit enslaves and enslaves big time it guarantees!

Funding a new business is never easy, aside from the thousand and one unfamiliar things to run, the hundreds of unforeseen, unexpected and unplanned contingencies, the tens of surprises what competition you face with the advent of your new business and hopefully one or two occasions where you need instant cash to top up the cash flow, credit cards can be your lifeline for cash.

But again and as usual, cash from credit cards is not something to be fiddled around with frivolously; it ought to be managed judiciously.

The pitfall in using credit cards is the easy cash advance, small installment payments but high and expensive interest rates.

Budget to payoff your credit card billings just before and exactly when it is due and pay off in full. This way, you take advantage of the free interest window period and avoid paying any interest and thus enjoy interest free money for a limited period of time while untying other sources of cash or near cash assets.

Also avoid being late in payment, even when you are making full payments because late charges has a minimum charge that could sometime be higher than the overdue interest on the outstanding payment.

All in all, funding a new business with the great flexibility, convenience and spontaneity of a cash source via your credit cards is indeed powerful and grant you access to instant cash.

However, credit card cash is not meant to be a feature in any of your first line defense strategy but only as a last resort backup.

The injudicious use credit cards cash can spiral you deep into a debt vicious cycle, one that you may not find easy to emancipate from, so be forewarned and proceed with caution.

Good Luck.

Learn more about this author, Alex Kee.
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