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What Are Business Credit Cards and How can Small Businesses Use Them

December 10, 2018

Financing a new business using credit card debt is often considered when founders have few other options.

In the 2017 Year-end Economic Report, the National Small Business Association (NSBA) reports that financing continues to be a challenge for small firms. Large banks dedicate only 15% of their financing to small businesses. Community banks, SBA loans and credit unions are even lower at 14%, 4% and 2% respectively.

31% of small businesses they surveyed stated that they are using credit cards as one form of financing. Because new small businesses are less likely to qualify for traditional loans, they may turn to the use of personal or business credit cards.

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