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Use personal credit

When you start a business, you have to pay for a lot of things up front. You'll also be waiting for money to come in. Make sure you find a balance, or you'll run out of money and be out of business. If you manage your cash flow carefully, you can have a successful business. By establishing a system that allows you to keep on top of where your money comes and goes, you will be well-prepared for the unexpected.

If you're facing a cash flow crisis and you can't get funds from a bank or investors, you can use your personal credit line to pay for expenses. You can use personal credit cards or a home equity loan until you get established. However, it's best to keep your business and personal finances separate. If you do use personal credit, consider it as a loan to yourself and count payments on that loan as business expenses. You could get into financial and tax trouble if you're not careful.
 

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