Use a Credit Card for Business Capital Check. This Information First
Are you interested in using a credit card for business capital? Apparently there are important things you need to know before you do that.
Credit Card for Business Capital
In building a business, it is usually identical to capital. Capital becomes a very important thing to consider. In fact, often capital becomes a barrier for someone to build a business.
How about you? Are you experiencing capital problems for your business?
Now there are several ways to get capital, such as using KTA (unsecured loans), multi-use loans, or even credit cards.
As the name suggests, KTA is a loan or loan that is provided without collateral. However, loans that are usually granted from KTA are relatively small so most loans from KTA are not enough to become business capital.
Besides KTA, there are also multi-purpose loans. A multi-purpose loan will provide loans larger than KTA. However, multi-purpose loans require collateral, usually like BPKB Motor, home certificates, and others.
For most people, of course to fulfill multi-purpose credit guarantees is quite difficult so, not infrequently people who try to get venture capital from a credit card.
However, before using a credit card as venture capital, do you already know the advantages and disadvantages?
Benefits of Using a Credit Card for Business Capital
This time, the rubric of Dr. Jayke will share the benefits of using a credit card for business. Here are two advantages to using a credit card for a business.
Use of Easy and Practical Credit Cards
The main advantage of a credit card is its ease and flexibility. Credit cards can help deal with short-term business capital needs. This of course will greatly help beginner entrepreneurs who have difficulty in getting capital.
On credit cards there are limits or usage limits. Each credit card has different limits. Usually the credit card limit starts from IDR 4 million. The greater the limit, of course the greater the capital you can use.
However, using a credit card as a business capital does not mean you do swipe cash ( gestun ) huh. Because, Go Invest Bank prohibits cash swipes. So, you still have to make a legal cash withdrawal.
Building a Good Credit History
Did you know a good credit history is very important? A good credit history is indeed a very important thing if you are interested in making a loan at the bank.
If your credit history is good, then you will find it easier to apply for a loan at the bank. Your credit history will be a reference for the bank to see your ability and behavior when paying debt.
Therefore, you need to maintain your credit card history properly. To maintain a good credit card history, you should try to keep your credit card inactive or dormant.
In addition, the use of credit cards for capital must also be paid before maturity so that your credit history remains good.
Oh yes, it is recommended that you do not use more than 30% of your credit card limit.