28-08-2007
SMEs should beware of credit card debt
Small to medium-sized enterprises (SMEs) should beware of using credit cards, it has been claimed.
According to comments made by Adam Wayland, editor of smallbusiness.co.uk, when using credit cards, SMEs should be aware of the possibility of getting themselves into unmanageable debt.
"Debt … can be a small business's worst enemy. In terms of funding there are lots of options out there, for example, business angels and bank loans," said Mr Wayland.
"If you're brave enough to be a little bit creative, you can use a credit card when you're starting off [a small business], but it is not advisable to rely solely on that method," he added.
If your business has substantial funds tied up in business invoices, factoring might be a way to raise cash.