personal finance

Business Owners Use Personal Finances to Keep Afloat

The average small-business owner has borrowed more than £20,000 from friends or credit cards in order to keep their business going, new research has highlighted. A study of 750 small firms by the Centre for Economic and Business Research and Make It Cheaper found that 47% had to inject cash from personal sources — with businesses typically borrowing £20,400 over a three-year period. More than a quarter (27%) had turned to friends and family, while 25% had borrowed on credit cards, according to the poll. More than one in ten (13%) had remortgaged their home to raise cash. Jonathan Elliott, managing director of Make It Cheaper, said it was “no surprise” that firms were turning to personal loans and credit cards to survive in the current climate. “Many smal... »

Personal Finance Props up SMEs

Cash-strapped small business owners are turning to friends, family and personal credit cards to help keep their businesses afloat after failing to access bank finance, credit reference agency Graydon UK has revealed. Graydon’s survey of 750 small firms during the last six months of 2009 found that inhospitable banking conditions have forced 28% of business owners to turn to relations and their social circle to secure funding. It also revealed that a further 8% of business owners have used personal credit cards. Forum of Private Business spokesman, Phil McCabe, said it can be dangerous for business owners to use personal finances, but that it is often their only option. “Turning to friends and family can mean the terms are often more favourable, but there are the emotional impli... »

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