Global market leaders and conglomerates are today taking note of India’s burgeoning startup ecosystem — and we don’t just mean in terms of funding. Recognising the unique challenges around launching a startup, these days financial products such as bank accounts, credit cards and more have been tailored to meet a new target audience — startup founders.
Cheques, cash and credit cards are the payment systems available to any startup. While cheques may consume a lot of time for clearance and have high transaction costs, cash belongs to a bygone era, at least in today’s digital India.
Credit cards can be quite handy. However, the problem is to keep them separate from personal finance, especially when there are many people involved in running a startup.
Temporary Credit Shortage: Problem Peculiar To Startups
Startup founders often commit the mistake of mixing personal and professional expenses by using personal credit card for company expenses. Well, business credit cards are the best option then, but obtaining them can also be tricky as small businesses will not have a long history of transactions. Just like obtaining a loan without security can be extremely difficult, getting a credit card when one is just starting out is difficult.
As even bigger companies face issues in getting business credit card, it is not easy for startups to get one. Even if they get it after months of struggle and paperwork, the way these credit cards are designed may not be suitable for small…