The Pitfalls Of Plastic

Credit cards can save a small business-or sink it

It started slowly. The business needed money--fast. Bills were mounting. A bank loan would take time and be a hassle. So the Portland (Ore.) restaurateur turned to his credit cards to help tide him over. He used one card, then another, then another. Before long, he piled up $95,000 on 15 different personal cards. Now he has hit bottom. Unable to pay, he faces personal bankruptcy.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.