You might often hear stories about people starting their business on a shoestring, funded by their credit card. It is true, and can work in some instances. Forbes covers this in a blog today.
Consider the how this movie was funded.
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In the early 1990s, Kevin Smith was looking for a way to fund the movie Clerks.
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With no major successes or established reputation, he was not able to find any financing for his movie via a traditional loan or investors.
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Not to be deterred, and always the imaginative one, Kevin used his creativity and utilized credit cards to finance the film.
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Through credit cards, Kevin raisedover $27,500 and produced his first successful movie.
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Based on the success of Clerks, Kevin would go on to direct movies starring Matt Damon and Ben Affleck.
You do what you have to do, I guess. The proposed benefits:
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Speed Of Funding: Credit cards are one of the fastest ways to get capital to substitute for a startup business loan.
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Low Interest Rates: 0% interest credit cards are no joke, as they are one of the most useful tools that exists when it comes to funding a business.
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Flexible Payments: When you start your business with credit cards, you have some of the most flexible payment terms that exist in any type of
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Unsecured Line Of Credit:To add a cherry on top, this money comes in the form of unsecured lines of credit.
That’s the list, but how could you forget to mention the Reward Points?
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group