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The Credit Card Debate

Yes, plenty of entrepreneurs use plastic to get their businesses started, but most see it as a temporary solution, not a long-term strategy

People thinking about starting up their own companies are nearly always on the receiving end of some stern advice: Don't use credit cards to fund your business.

But the truth is that most entrepreneurs do rely on plastic in the early—and sometimes later—stages of forming their business. A March, 2007, survey done by the National Association of the Self-Employed (NASE) showed credit cards were second in popularity only to savings as the preferred method of startup funding and ongoing funding for micro-business owners—those with 10 or fewer employees.