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You are missing my point. I don't care if credit reconciles immediately at the bank level or not, I care about what credit cards allow me to do, which is smooth
by kchoudhu 9y ago
You are missing my point. I don't care if credit reconciles immediately at the bank level or not, I care about what credit cards allow me to do, which is smooth over lumpy cashflow.
If I have expenses of 100K a year, without access to credit I have to make 100K a year without fail, or I am insolvent. With credit, I can make 100K one year, 0 the next and 200K (+ whatever interest I need to pay for Year 2) in the final year. The optionality is more than worth whatever interest and surcharges I encountered by using credit in Year 2.
Lest you think this is insane, this is how I bootstrapped my last business.
- Spearchucker 9y agoIf it were insane nobody would do it. It does, however, come with a magnitude of risk that Americans seem more likely to accept than Europeans are.