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If you need funds for your new business... you can get very creative with the credit card industry!

After all, because you are new to business, banks are not the most receptive when it comes to lending out money for business..

If you plan carefully and chart your credit card you can succeed in winning at the credit card game.

If you get offers for a very low percentage of interest on your present credit card or a new one that you have been "pre-approved" for, and you feel your business just needs that extra cash for the push in the right direction, then go ahead and take an advance. But, and this is a big BUT, do not use that card for any other purchases, because the way these credit card companies make up for their low interest fees is to charge their regular or higher rates on any purchases you make after taking the cash advance.

Example being.. say you take 5000.00 dollars from a 1.9% credit card, and you can have that rate for 12 months... you think great! I will pay approximately 425.00 dollars a month for 12 months and I will have got a great deal!. But if during that 12 months you go to the office supply store or hardware store or get gas or whatever, and charge it to that same card?.. well, thats when the costs begin to rise. If you purchased something at the office supply store for 200.00 dollars for example, you think, well I will just add a couple hundred dollars to my payment that month right?

No, it doesn't work that way, any payments you make on this card will ALWAYS go to the lowest interest balances first.. they tell you this when you sign up.. so this means that even if you added 200.00 dollars to your payment, they will just pay down your low interest loan with it, and leave your 200.00 dollar purchase sitting at 24% or whatever their normal rate is.. until you finish paying for your low interest loan, then they will put money towards the purchases... so if you do this a lot, you are going to end up with purchases sitting on your card at their highest possible rate, until you finish paying off the low interest loan!.

The best way to beat them at this game, especially if you really need to fund your business... is to not use this card for anything else until you pay off the low interest loan, use another card, cash, cheek, something other than this card... that is one of the ways they try to recoup their interest fees!

Funding a business or just the day to day running of a business, will turn even the most non imaginative person, into a creative one, as you try to figure out the cash flow of your business and the different ways of getting your hands on some extra low interest cash!

Learn more about this author, Diane Palmer.
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