Credit Card Funding

You want to start a business that makes traffic cones. It’s a high-growth business in Chicago, particularly during the summer season of road construction. However, you can’t get a private equity backer. And a bank won’t just give you a loan.

So, what do you do?

You might start putting all your costs on a credit card to get your business off the ground. Credit card funding is the common practice of putting cash into a new account. Many banks will allow people to use credit cards even though the associated cash advancements will require interest rate charges.

Many investors are also allowed to use credit cards to fund trading accounts. This is popular in Forex trading. However, financial regulators have banned the use of credit card funding on certain speculative markets, including cryptocurrency trading, in recent years.