Bootstrapping a small business is really tough, but many new entrepreneurs believe this is their only option because they have no business history. One option that has been viable that I’ve seen, and used myself, is to leverage your personal credit to apply for multiple balance transfer/0% introductory rate credit cards. Depending on your credit, you can get up to $150,000 in new credit lines and you can usually do a balance transfer of up to 90% of what you were approved for.
Most people don’t know that many banks allow you to do a balance transfer to your own (or business) checking account. It’s similar to a cash advance, but it’s not. Cash advances require you to make high-interest payments immediately whereas doing a balance transfer to yourself keeps the 0% introductory interest intact for the 12 to 18 months. There is usually a 3% balance transfer fee, but if you need, let’s say $50,000, most people would be happy to pay $1,500 to access that amount of money interest-free for their first year.
Contributors: Jon Sycamore from Jon Buys Utah Homes