Aardvark needs some short-term financing to meet a cash-flow gap while it makes immediate capital expenditures. Which of the following, if True, would strengthen the case for the company's using a credit card for this purpose?

Question

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C) Business credit cards can be a viable source of very short-term financing if the company can expect to pay off the balance within a month, thus avoiding potentially high interest charges. If the money can't be repaid within a month (Choice B), then family members (Choice A) who might be the source of short-term loans would be preferable to a credit card advance. The line of credit from a credit card is without interest for only a very limited time-usually a month, or less, depending on the card (Choice D). Choice E: Having collateral would strengthen the case that the company could obtain a bank loan, in which case it would not need to use a credit card.

Aardvark Needs Some Short-Term Financing to Meet a Cash-Flow Gap