Why You Have to Stop Using Your Credit Card As a Small Business Owner: The Facts Your Provider Doesn’t Want You to Know

Why You Have to Stop Using Your Credit Card As a Small Business Owner: The Facts Your Provider Doesn’t Want You to Know

It has long been said that there is no shortcut to getting out of debt, and this elementary notion is acutely predominant in the twenty-first century. Our credit card companies have grabbed the Australian populace by the short hairs, and they’ve been able to bury millions of us under mountains of overwhelming credit balances.

Consequently, the ASIC regulatory body has recently come to grips with the credit card debt typhoon that has flooded across Australia, and their decision-makers are set to make some sweeping changes to how credit card companies operate and how remunerations are calculated.

Unluckily, however, these efforts from the ASIC will do little to nothing to aid those that have already fallen into the hellish, never-ending cycle of minimum payments and compounding interest.

Swimming through an Ostensible Sea of Debt

Credit card utilisation eventually turns into an addiction of sorts, and our country’s financial institutions aren’t helping to control the crisis. Consider the following facts:

  • During just the past five years, it is estimated that somewhere between 20-24 million individual credit cards were authorised in Australia. This relatively short stretch of time has caused our countrywide credit card debt to swell to a total of $40 billion.
  • The Australian GDP is ranked amongst the top 20 countries in the world, so some of this excessive spending can be attributed to a strong and stable economic landscape, but you have to understand that roughly 70% of our national credit card debt isn’t comprised of straightforward spending – it actually comes from the towering interest rates tied into every credit card account.
  • Financial watchdogs believe that Australians could have saved nearly $700 million in interest rate accruals over the past 12 months if they avoided making minimum payments and went the extra mile to carry a lower balance.
  • Small business owners are the most lucrative victims for credit card companies. Out of the 2.1 million companies in Australia that employ less than 20 people, approximately 58% utilise one or more credit cards to bankroll day-to-day necessities.

The primary reason for this ballooning credit card debt is ease of access. Our charge cards are always there; they are easy to swipe; and the lion’s share of credit card holders in Australia have disproportionate limit allowances that far outpace their financial solvency.

So, What Am I Supposed to Do If I Need to Fund My SME?

Imagine if you – as a small business owner – had a resource that allowed you to obtain cash just as quickly as using a credit card, but which didn’t inundate you with gruelling rates month after month. Wouldn’t that be fantastic?

Well, this saving grace does exist. All you have to do is touch base with a highly regarded private lender that specialises in small business loans in Australia.

In the same amount of time it takes you to transfer your balance to a new credit card, you can fill out a brief authorisation form with a private-sector funding organisation and obtain anywhere from $1,000 to $1,000,000. Additionally, you’ll enjoy modest interest rates as low as 1.8% per month, which is essentially a tiny proportion of the intermediate credit rate of 17%.

Smart spending begins and ends with reliable private lenders, so don’t you dare swipe that card credit before at the very least checking in with an accredited funding firm.

Categories: Business

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