Tuesday, June 09, 2009

2009 Small Business Credit Card Survey

The National Small Business Association's 2009 Small Business Credit Card Survey (12 pp PDF) "provides a detailed view of how small businesses are utilizing their credit cards, how their credit-card companies are treating them, and the impacts of deteriorating credit-card terms on their business. Small business credit-card usage is on the rise..."

SMALL BUSINESSES
Using credit cards in the past 12 months to finance their firms
December 2008-49 percent
April 2009-59 percent.

Reporting worsening credit-card terms
December 2008-69 percent
April 2009-79 percent reported worsening terms

Experiencing credit-card issuers reducing credit lines
December 2008-28 percent
April 2009-33 percent

Paying off their credit cards each month
December 2008-50 percent
April 2009-40 percent

"In past recessions, economic recovery has been led by the creation of millions of new, small businesses. However, unlike previous periods of economic uncertainty, today’s entrepreneurs are severely limited in their ability to finance new business ventures by leveraging the value of their home, borrowing from friends and family, or securing a traditional loan. This leaves one clear, often unattractive, option: credit cards."

ALSO, from the International Franchise Association, The impact of the credit crisis on the franchise sector (28 pp PDF)








4 comments:

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Alameda County said...

Thanks for the heads up! Starting a small business without the aid of a credit card can be quite stressful. Since business expenditures can be add-up to significant tax deductions, it is imperative to separate personal expenses from work-related charges. Aside from the tax savings, a business credit card represents expanded options; particularly with the right card.

Alameda County

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thanks for good info.

tmena said...

Using the leverage of credit cards (CCs)can be a viable way to fund a start-up or existing business. It's certainly nothing new.When the banks aren't borrowing you can get the same amount with CCs much easier.It can be a great ROI IF properly done ie. Such as using low interest rate CCs. Making sure you don't mix personal with business use. Using your cash to when you really need it. Using CCs for business purposes is much wiser than using them for personal purchases. When used correctly.