Using credit cards to start a business?

wigginsmum

I've given you facts; now I'm going to leave you to it.

andy013

Thanks for your advice

Mark7799

I won't make any comments on your proposed choice of finance but am intrigued as to why you have come up with the figure of £50k being necessary.

What sort of research have you done on your business idea - have you completed any formal business plans yet?
What is your projected income and expenditure for the first twelve months of the business?
Will the business provide you with enough to live on, repay any borrowings and reinvest in the business?
Are you planning to carry on with your studies in the meantime - if so, how much time will you actually be able to devote to the business?

These are all points I think you should be considering before you look at actually raising the finance.

jonesMUFCforever

I wouldn't worry too much about Andy.
He has as much chance of getting 10 credit cards each with a limit of £5k with no charges for cash advances!!! as I have of wining the lottery jackpot.
He may get one or two if he's lucky but no more.
As Mark says why does he need so much start up capital when he's a full time student.
He could always try the Dragon's Den though.

mrmajika

andy013 wrote:

Okay, let’s say that I get some cards that are interest free on cash advances.

Do such offers exist !? I certainly haven't heard of any.

MPH80

What sort of research have you done on your business idea - have you completed any formal business plans yet?
What is your projected income and expenditure for the first twelve months of the business?
Will the business provide you with enough to live on, repay any borrowings and reinvest in the business?
Are you planning to carry on with your studies in the meantime - if so, how much time will you actually be able to devote to the business?

If he had all of this information and well presented he wouldn't need this system to raise the finance - he'd be able to get a business loan.

But I agree - the chances of being able to get the 10 cards, with 0% on cash advances (which is rare enough in itself), with £5k on each and no income is about 0.

M.

qwopmnxz

hahahahaha.

is this a joke mate?

GaryTravers

qwopmnxz wrote:

hahahahaha.

is this a joke mate?

either that or just a bit naive.

no offence mate but your plan really wont work.

its unlikely you will get 10 cards. its very unlikely any of the ones you may get will have anywhere near 5k on them. the interest rates for the ones you may scrape getting will be rediculous.

back to the drawing board mate, slow down a bit..

rio

If you are juggling around with credit cards sooner or later one of the card companies will spot it and start investigating. Using one account or card to pay off another on a regular basis is a classic warning flag for attempting to defraud. Paying into one account and then taking the same amount out each month i.e. not reducing the debit balance could be a sign of money laundering. If you conduct your affairs like this then at least one of your card companies will pull the plug!

PosterBoy77

I don't think people here should dismiss this idea. I don't know what kind of business is being planned, but I have undertaken many business deals which stood a very good chance of working, but where I would never have been able to borrow the money from a bank. Banks tend only to want to lend money to businesses who do not really need a loan. They would rather give a credit card to someone!

Anyway, I think the plan could work in a more moderate fashion. If an application were made for Egg Money in addition to 5 other cards or so with 0% interest then the money could all be balance transferred to Egg and then moved to a high interest account. The money could then be drip fed back to pay the cards off.