Starting an Online Business All-in-One For Dummies®, 3rd Edition

Checking Out Alternative Financing

When all else fails, a diligent netrepreneur still has a few other financing options. Alternative financing gives you one more option, although it's not necessarily your best or first choice. These options can help you open your doors for business, so to speak. Many times, you end up combining a variety of these sources to fund your great idea:

• Credit card: For better or worse, a credit card is a popular choice for funding a business. More than 80 percent of small businesses have used personal and business credit cards as a source of money, according to the Small Business Administration (SBA). As lending tightens from banks and other traditional resources, credit cards can sometimes provide the only source of fast cash for a new or growing business. Although credit cards may be a quick and easy alternative, they can also be expensive. Some credit card companies charge interest at 20 percent or more. In addition, they can slap you with hefty fees for late payments or for exceeding your credit limit. Financial advisors also caution that fully paying down the balance of your credit cards can take decades when you're making only the minimum monthly payments.

  Consider moving balances with high interest terms to another card. Credit card companies often offer limited introductory low- or no-interest rates for transferring your balances from other cards. ...