New post on: Entrepreneur Daily Dose
With banks turned stingy about handing out small business loans, more and more small business startups are turning to credit cards as the primary vehicle for their business spending needs. We always knew that was risky, but a new study on businesses’ credit-card use released by the Ewing Marion Kauffman Foundation is enough to chill an entrepreneur’s blood. In the study, 58 percent of small-business owners said they relied on credit cards for startup money in 2006. The dark side: For every $1,000 in additional credit card debt, the probability that the firm would close increased by 2.2 percent. And the way some business owners can run those cards up, $1,000 is couch-cushion change.
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