Sue is starting a personal wellness business.She is uncomfortable with making a loan application to a bank and decides to use her existing credit card for any short-term financial needs.Her dad suggests this is a bad idea because:
A)the interest rate on any outstanding balance,any amount not repaid when the next credit card statement arrives,is usually significantly higher than the interest on a bank loan.
B)suppliers do not allow credit cards to be used to pay for purchases.
C)Sue will not be able to claim any amounts charged on her credit card as expenses of the business.
D)Sue may well use her entire credit limit for business financing and not be able to use the credit card for personal purchases.

Question

Quizplus · Accepted Answer

Using a credit card for short-term financial needs may result in a higher interest rate on any outstanding balance. It is advisable to consider other options like a small business loan or crowdfunding.

Sue Is Starting a Personal Wellness Business