When you finance your new company with a credit card, the funds don't have to be used for a specific purpose, and the qualifications are less demanding than those associated with other types of loans. The interest rate is often higher, so it is best to charge only essential purchases on your company credit card.

Although interest rates and late payment penalties on these cards usually exceed those of traditional financing, they are preferable to payday loans, which charge particularly high rates to the borrower. They are also accepted by some companies that don't take payment via check or money order.

Another use for small business credit cards is to finance new purchases while waiting for expected income to arrive from clients and customers. This technique can limit the burdens of "cash flow" problems, but only if it is used sparingly and isn't based upon inflated expectations of income.

Some lenders offer specialized business credit cards that are customized for the owners of businesses. This type of card has the name of your company printed on it, rather than an individual's name. They often include travel or other bonuses which accrue with purchases, and most do not have an annual fee.

Overall, small business credit cards provide an easily accessible method to finance your new business, but they should be used rationally and compared with other sources of financing. Consider using the Internet to help find the most suitable card for your business.