Credit cards drive up small-business debts
Credit card debt is not just a concern for consumers. According to a new report by the Small Business Administration, plastic is one of the main reasons the number of small business carrying debt increased 25 percent last year.
From June 2004 to June 2005, the number of businesses with outstanding loans under $100,000 jumped from 15.2 million to 19 million. A full 70 percent of that figure was due to credit card debt, the study found. Despite the dramatic increase in numbers, the total dollar amount increase was a meager 1.9 percent -- suggesting a growing number of companies are using credit cards to cover smaller expenses.
Despite the slowdown in other areas of small business lending, the ''small business credit card market continues to be quite dynamic,'' said Chad Moutray, the chief economist for the SBA's Office of Advocacy.
From June 2004 to June 2005, the number of businesses with outstanding loans under $100,000 jumped from 15.2 million to 19 million. A full 70 percent of that figure was due to credit card debt, the study found. Despite the dramatic increase in numbers, the total dollar amount increase was a meager 1.9 percent -- suggesting a growing number of companies are using credit cards to cover smaller expenses.
Despite the slowdown in other areas of small business lending, the ''small business credit card market continues to be quite dynamic,'' said Chad Moutray, the chief economist for the SBA's Office of Advocacy.
Read more at: Credit cards drive up small-business debts
posted by e-borneo.com @ 6:42 PM
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