Get your Company Up and Running with Small Business Credit Cards

Why it works

Often it's difficult to find financing for a small business. Loans are notoriously difficult to get, and unless you really "wow" a private investor, that route is usually closed to the entrepreneur.

If you need a significant amount of startup capital, that becomes a major problem. But in many areas, you don't actually need a fortune for your business costs -- you just need a little bit more than you have.

If that's the case, small business credit cards provide a wonderful way to make initial purchases or even obtain cash advances to get your business going. Obviously, again, this won't work if you need a massive startup loan, but if your costs are modest credit cards work as well, if not better than, many loans.

How to get one

Before you can get small business credit cards you need an EIN, or employer identification number. You have to get this just like you would an SSN. It allows you to pay your employment taxes, as well as other business functions.

From there, you can apply for a credit card with your EIN, but keep in mind that since your business doesn't have any credit history, creditors will probably want to see your personal credit history when deciding whether to issue a card. That means if your credit score isn't ideal, you may find a business card difficult to obtain.

For most people, though, this is an effective and simple solution to the costs that occur when you start a new business. If you don't want to get a loan, small business credit cards provide a fantastic alternative to get you going.