By Odysseas Papadimitriou
More than 80 percent of small-business owners use credit cards, according to the Federal Reserve. But some make the mistake of reaching for plastic (means credit cards) too soon when starting up their businesses and reduce their chances for long-term success.
Nearly 60 percent of start-ups rely on credit cards for financing during their first year of business, according to a study from the Ewing Marion Kauffman Foundation, and for every $1,000 increase in credit card debt, a firm’s chances of survival decrease by more than two percent. The reason includes you might not have enough money to pay the credit card’s debts on time, and have to pay the high interests….