Here’s an article about Small Firms Using Credit Cards for Capital.

If you’re young and looking to start a small business, one of the first challenges you will encounter is how to fund your startup. The most obvious route (for me, anyway) was to acquire some type of small business loan from the local bank. But, with no major assets and no proof of a profitable business in action, acquiring a loan is near impossible. I’m sure many other young entrepreneurs will experience the same thing.

But, there is hope.

One very risky, but viable option is to jump start your project with a credit card. This article talks about that. From my own personal experience, using a credit helped my small startup succeed.

As the article states, remember that there is good debt and bad debt. “Good debt generates revenue; bad debt consumes it.” For my Greek Store, we used credit to purchase assets (machines) with good resale value. The machines also allowed us to vertically integrate our business and provide for better margins. To us, this was good debt that would pay for itself.