Credit Cards Essential for One-Third of Small Business Owners
More than one in three small business owners rely on credit cards, home equity loans, or loans against retirement funds to keep their companies running, according to a survey conducted by MerchantCircle. Only about five percent of survey respondents reported that access to business credit had improved during Q2 of 2010, a modest improvement from the 4.5% figure reported after Q1. Meanwhile, 56% of respondents told researchers that availability of small business credit cards and loans had worsened over the previous three months.

1.3 million businesses maintain membership in MerchantCircle, a social network that helps company owners connect with prospective customers. Nearly 10,000 of the network's members participated in the Q2 Merchant Confidence Index survey, with 90% of respondents classifying themselves primarily as brick-and-mortar businesses. Many small business credit cards require cardholders to make personal guarantees on balances, tying company borrowing to the personal credit scores of owners and investors.

About the Author


Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.