How to fund Business on Credit

[Adisalman]

Funding and establishing businesses is generally understandable to be something that requires capital. Capital being a catalyst of business management and structure , without it, nothing can be done.

Some business oriented people either experienced or newbie often fall into what we call mismatch of inestment decision. Some investment decision that has to with taking short term loan to finance a long term investment. on the other hand , it can be by engaging in long term loan to fetch short term investment.

A short term loan is expected to have a paid back period of within a year while , using this type of loan to finance an investment that is termed going concern. This is a mismtach in financing. Also if a loan that is on Long term agreement is secured to finance a short term investment, this will create an excess funding that might useless .

The two scenario highlighted above are mismatch financing , Therefore to finance business with credit or bank loan, it must short tem loan to short term investment or long term loan to long term investment.

Business oriented business need to have the understandig that to finance investment on credit, one must not make the mistake of mismatch.

 

[Yusra3]

Business credit cards and lines of credit offer funding streams for entrepreneurs, but their use requires financial diligence. Establish strict spending limits, track expenses obsessively, manually pay balances monthly, keep utilization low through quick repayment, and leverage points or cash back earned to offset costs. Used strategically and with discipline, credit provides easily accessible working capital, fueling growth as long as repayment discipline persists to avoid snowballing debt burdens.