A recent study found that credit card usage to keep small businesses, including home-based businesses, afloat can be deadly to their well-being. "A recent study by Robert Scott of Monmouth University found that every $1,000 increase in credit-card debt increases the probability a firm will close by 2.2 percent," Alan Zell posted in SCORE's online Listserv, as quoted in a Herald-Tribune story about credit-card financing.
"Credit cards are more prevalent for funding start-up businesses because traditional sources of financing have become less available during the Great Recession and financial meltdown," the article says.
Instead of using credit cards for your at-home business, consider saving money before expanding, cutting expenses to the bare bones and growing your business slowly. I offer more ideas on how to finance your home-based business in my book, Hired @ Home.
Until next time,
Sarah
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