We love explaining the benefits of accounts receivable financing, and how it is an effective tool for all sizes of business, but there are other tools worth considering. Another way to help start-up businesses in their infancy is the use of a credit card. A recent ‘how-to’ guide in the online edition of the Wall Street Journal, discussed how to pick a credit card for your business.
When a line of credit from the bank is not yet forthcoming, and those first few invoices are not yet large enough for you to qualify for invoice factoring, a credit card may be the answer as a stopgap measure. This also establishes initial credit in the business’s name.