Funds are most needed when first setting up a business. This is because a lot of resources are needed before trading can begin. Some of these resources are 'one-off' items. For example, a new restaurant would need to buy cookers, refrigerators, utensils, furniture, glassware and other equipment including knives, forks and plates. Other start-up costs might include research, converting premises, legal fees, website design and marketing,
A disadvantage of using credit cards to borrow money to support a business is that interest rates can be very high is the borrowed amount is not repaid within the given period - usually 56 days?