Question

Advantages of using a credit card in small business financing include that it

a.provides lower interest rates for the small business owner
b.provides a line of credit
c.provides higher interest rates than a bank loan
d.saves time and is convenient

Answer 1

Advantages of using a credit card in small business financing include providing a line of credit, saving time and convenience, and potentially lower interest rates.

Step-by-step explanation:

There are several advantages of using a credit card in small business financing:

1. Provides a line of credit: A credit card allows small business owners to access a line of credit, enabling them to make purchases and pay for expenses even if they don't have enough cash on hand.
2. Saves time and is convenient: Credit cards offer a quick and convenient way to make transactions, eliminating the need for trips to the bank or writing checks. Businesses can easily track and manage their expenses through credit card statements.
3. Provides lower interest rates for the small business owner: Some credit cards offer introductory or promotional rates that can be lower than traditional bank loans. However, it's important to carefully compare interest rates and terms before choosing a credit card for small business financing.