A Start-up Business can Benefit from Credit Cards As a start-up business owner you might (make that “will”) find it difficult to find a source of capital to grow your business. Who doesn't need a small business loan, right? However, did you know that your start-up can benefit greatly from the use of small business credit cards? That’s right, small business credit cards can be used to capitalize your business in a way that will take you from the start-up stage to the existing business stage with ease (well, you know what I mean). According to a study conducted by Keybridge Research, “small business credit cards are a major contributor to the success of small businesses and the U.S. economy overall”, especially for early stage businesses. The study also found that: \tCredit card lending to small business owners enables them to create at least one job for each $5,613 increase in credit card usage each month. \tBetween 2003 and 2008, an increase in credit card lending to small business owners resulted in the creation of 1.6 million jobs. \tBetween 2003 and 2008, an increase in credit card lending to small business owners resulted in $142 billion pumped into the economy. That would be considered around one quarter percentage point of total U.S. value added or GDP. \tFor every $1,000 in credit card use by start-up business owners, it resulted in a $5,500 increase in company revenue. I like this one the best. Positive Impact of Business Credit Cards & Start-ups The positive results you can experience by using small business credit cards to grow your start-up business are endless. Not only that, but where else will you find low-cost (can you say 0% introductory offer) financing with no collateral and no financials required? If you decide to use credit cards as an early stage financing tool, you need to understand the importance of using them the right way. Here are some key points you should keep in mind should you decide to use credit cards to finance your business: \tSeparate your business from your personal credit. Many credit card providers can choose to report your "business" credit card usage to your personal credit history. This is why it’s important to strategically go after small business credit cards instead of personal credit cards. Small business credit cards, if the correct ones are chosen, will keep your business credit separate from your personal credit. \tKeep your balances on your personal credit cards below 30-40% of the total available credit limits. The lower the better but if you must carry some balances then don't let those balances become excessive. Over-using your credit cards will hurt your FICO scores and make it tough to obtain additional financing. Don’t just think about today. Successful business owners think about the impact that today’s decisions will have on them and their business in the future. \tTreat your personal credit like an asset. Let’s be honest, it can be very easy to ruin your personal credit. Therefore you should always be mindful of how you use your credit cards, especially during the start-up phase. Think about using your small business credit cards for revenue generating activities (e.g. effective marketing to generate more leads). You will thank yourself in the future if you ever need additional financing after your business has grown beyond the start-up phase. Nothing is more exciting than taking your dream from concept to reality. Most of us need at least some financing to bridge that divide between our dreams and the realization of those dreams. Credit cards may not be the financing tool you dreamed about but they are a viable option and, in many cases, the best option you have in the first couple years of your business. Don't be discouraged and not take action. That only delays your business. Think about using credit cards the right way and you can make them a valuable tool that can get you from the batters box to first or even second base. Most successful business owners have done it so why not you! Lendio's mission is to empower your small business by making small business loans simple through options, speed, and trust. Whether you are looking for a start-up loan or a line of credit, Lendio offers hundreds of different loan products from a variety of lenders. Source: Keybridge Research LLC, QUANTIFYING THE IMPACT OF CREDIT CARDS ON SMALL BUSINESS GROWTH & U.S. JOB CREATION, . Tom Gazaway is a CEO and founder of Hawkeye Management. The primary goal of his business is to connect entrepreneurs and small business owners with capital to help them achieve their goals and dreams.