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Working Capital Connecticut

Bootstrapping Your Working Capital In Connecticut Using Personal Credit Card

All new businesses need working capital to start on a solid foundation. In Connecticut, working capital is essential to take a business from one operating cycle to the next. This is even more critical if your business is a manufacturing business. In which case, you’d need money to buy materials to fulfill your obligations to clients.

Also, before the profits begin to show up in the books, you would need money to pay utility bills, labor and various other bills that might crop up in the course of doing business.

However, as a startup or a small business, it might not be easy to get credit from banks. In some cases, the conditions, the interest rate, for instance, might be so steep that the business becomes saddled with too much debt.

In such a case, breaking even might take a while. Many businesses have been known to shut down due to crippling debts from unpayable loans. That is where bootstrapping comes in.

Bootstrapping your working capital in Connecticut

In simple terms, this means using personal finances or resources to grow and manage your business. Bootstrapping might look like the last, desperate option for financing a business. But using this option is not necessarily because it is the only way open to a startup.

For small and new businesses, getting loans with favorable repayment terms can be very herculean. With personal resources, one is not immediately under the yoke of stringent repayment plans. The business owner can plan the growth of the business at a pace they can manage without too much stress.

One of the best ways to bootstrap a startup’s working capital in Connecticut is through the use of personal credit cards

Why use credit cards?

Some of the reasons include, but are not limited to:

1) With your personal credit (hopefully, your credit rating is good), you get all of the important benefits that you can get from a bank loan

2) Using your credit card to get the required working capital is easier than through the usual channels of getting business loans. Think of all the documents you don’t have to sign.

3) Credit card loans are unsecured. So you don’t have to put your house or valuables as collateral before getting the needed funds.

4) Most importantly, you can use the credit to take care of your operating capital requirements.

5) Many personal credits cards do not charge astronomical annual fees. Some even have zero charges plus cash incentives to users.

6) Since most credit cards have a monthly billing cycle, it means you are not charged interest on the credit until after the month is up. Basically, you have access to an interest-free loan with your credit for at least a month.

Things you must consider

There are a couple of factors to consider if you want to make a huge success of your bootstrapping effort using your credit card.

First of all, make sure customers or clients pay for services rendered before the credit card billing cycle is due. Basically, you have 30 days (plus a couple of weeks’ grace) to pay or the interest on your credit would kick in.

However, with the right business strategy, paying interest for one or two months should not cripple your business.

Secondly, try as much as possible to pay off the credit in full after you have been paid by clients or customers. Allowing little debts to accumulate might become a habit you don’t need. Besides, paying in full as and when due keeps your credit rating high.


Bootstrapping your working capital in Connecticut can be your best option when traditional means of getting loans are impossible. If you need more information on Bootstrapping strategies, feel free to contact a financial adviser at any time.


Working Capital Connecticut
Lavan Financial Group
6 Landmark Square, Suite 400, Stamford, CT 06901

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