Hey guys Sean Mory here. Thanks for joining us for another session of LenCred Credit Geeks Q&A. Joined today once again by our founder and CEO,Tom Gazaway, as well as Dustin Weitzell one of our Advisors. One of my favorite questions I have ever gotten and I get it everyday, This one comes from Terry out of Ohio Tom. Terry asks, ” What is a small business credit card?” Great question, so we all know what a credit card is and you know incidentally as you know Sean, you are talking about the most commonly used form of financing.
There are 28 million small business owners out there, and the number one, you know financing option that they are using is credit cards. unfortunately, in most parts of the country it is more common for people to be using personal credit cards rather then business credit cards. Using a business credit card it often, not always, but often a step in the right direction that allows that business owner to begin to separate their business and personal credit.
For me must of my clients that I talk to on a daily basis, they think that credit cards are the last option that they want to have. They want to go to the loan, get a loan out, be able to write checks and do all that stuff. What they do not realize is that there is less then a 7% chance that the banks are going to approve you. Probably less then .002% chance you are going to get a SBA. So in the meantime to build yourself up to that getting a credit card at 0% for 12-15 months and getting a paper trail where banks can track your record is absolutely a great way to that end result you are looking for.
Just like anything else, you can use a good tool the right way, or you can use it the wrong way. We wouldn’t want people to use any form of credit irresponsibly but part of the message you are sending is that, when used responsibly, where else are you going to come up with lost cost money with 0% introductory offers.
Where you do not need collateral and you do not need financials and you can get it as a startup. So it is pretty attractive in those sense. Not a cure all and not necessarily for everyone but certainly an option probably for a lot of people if the open themselves up to that possibility of financing their business partially through some credit card financing.
Sometimes it is peoples only option but it does open that door for other funding options down the road that they are looking through the glass door that they cant get through. 6 to 12 months of good payment history on your business your starting with someone who will give you an opportunity that will unlock that door to other opportunities.
As you know Sean when used responsibly and we try to build a lot of infrastructure around that, when used responsibly you can be in a much better place 12 to 18 to 24 months down the road with your business. So that you have better credit and some business credit so then that those additional forms of financing are going to be more real and more of an option in the future to grow your business.
Terry I hope that answers you question. Thank you for joining us for an other session of LenCred Credit Geeks Q&A. Guys thanks for joining me, please feel free to reach out to us at www.lencred.com if you have additional questions. We would love to do what ever we can to help.