To Use a Credit Card or Not to Use a Credit Card to Fund My Business, That is the QUESTION

So, I didn’t get the micro-loan and I’m ok with it, afterall I can get credit cards with lower rates and because I have “a million more dreams to go”…(my theme song this week). It was a good experience and I learned a few things from their feedback.

Their feedback:

  • They said they’re not sure about my latest revised model to start with a low investment and do home parties (this is just to TEST the concept, we will do stores), they think I should do a store and get an angel investor!!! Hmm…but then I need $500k+!
  • They were skeptical about the potential success of the home party model even though we discussed other companies such as Shade Clothing ($4.5M last year in sales at home parties) THey said to do 5-10 home parties and then try to get financing. I agree!! That is our plan, but we still need funding to get our inventory and do our initial branding, etc.
  • They suggested that I could likely get financing elsewhere based on our assets and that I need to explore more of the options such as Wells Fargo Financial
  • They suggested that I use a bank business line of credit.
  • They suggested that I use funding from “friends and family” (anyone interested?)
  • They actually suggested that I can get a better rate with a credit card and that I could just start there.
  • They said I have a great board of advisors, I should go to them for funding.

I hate credit cards. Any other ideas? I need $10k yesterday.


  1. If you own a home, you may want to consider a home equity loan or a home equity line of credit. Obviously the loan would be based off the value of your house not some banker’s opinion of the probable success of your business. You can use “tracing rules” to be able to deduct the loan as if it were a business loan (seek the advice of a tax professional before employing this such that it’s done correctly), so you wouldn’t be out anything there.

    If you choose to go the credit card route, which isn’t a bad idea, then I would first get a business credit card and only use business credit cards as it makes the tracing rules that I referred to earlier “cleaner”; thus, easier to justify to the IRS.

    A third option would be to ask whoever you believe would be your top vendors if they wish to be investors.

    Best of luck,

  1. 1 Congrats to Start Up Princess Gina Gwozdz, Featured in USA TODAY «

    […] Start Up Princess Gina Gwozdz, a Tax Accountant from Texas, recently commented on this site when I asked for some advice about financing my start up and now USA Today’s quoting her about how she financed her start up (converted her personal office to her home office). Lucky us, Gina has agreed to be a Fairy Godmother/guest blogger on this site monthly so we can all be smart with our taxes. She has great PR advice too, she has a blog (what tax accountants do you know who blog)? and suggests that Start Up Princesses sign up for the USA Today Entrepreneur panel. […]

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