Funding a small business with a credit card goes against conventional wisdom. After all, credit cards are essentially short-term loans with very high interest rates, and – depending on the credit limit assigned to your business – may not even offer you a substantial loan amount. To a small business with little capital, turning to a credit card for funding might seem like a risky option, only to be considered when all other alternatives have been exhausted.

Conventional wisdom is not always right, however. When wielded wisely, a credit card can actually be a sensible financing option. Here are five times you should consider using a credit card for your small business:

  1. When you need instant, short-term cash flow

In 2017, delays in customer payments were the top finance-related challenge faced by SMEs in Singapore. Delays in payments can cause issues with cash flow management, which in turn can …