Small Businesses Still Relying on Credit Cards

Small Businesses Still Relying on Credit Cards

Nearly half of all small–business owners use a credit card to boost their firm’s cashflow, new research has found. The survey of more than 700 UK small-business owners and financial directors by Hilton–Baird Financial Solutions found that 44% use credit cards as working capital, despite the high interest rates charged. However, Institute of Chartered Accountants in England & Wales (ICAEW) head of SME issues, Clive Lewis, said that credit card use was acceptable in the short–term, provided debt was kept under control. “If you do accumulate some debt, run it down as quickly as you can, but it’s a good source of finance when a business faces difficulties, or cannot access other types of finance.” said Lewis. Director of small business Hollywood Tower conference centre, Laura McCrum, said:... »