Credit Cards

Many small businesses, including photographers, start the business with their credit card. They put everything on their credit card and pay the minimum payment every month or slightly more. Every so often, a business magazine highlights a small entrepreneur that started the business with their credit card and has become very successful.

According to Business Week, in the US, 44% of all businesses are using credit cards for some form of financing. 48% of small businesses are using credit card for financing. This means that half of the small businesses carry a credit card balance. Are you? Small businesses, including photographers, are using their credit card because the credit cards are easier to get than a loan from a bank. Credit cards do not require collateral.

The problem today with credit cards is that the banks are raising the interest rates of the credit cards and are reducing the credit available.

I bought all my cameras and lenses on my credit card [and got my air miles points]. The big difference between me and all these other guys is that I pay my credit card in full! No 13% interest, no 18% interest or 21% interest charge.