In Brief: Use of Credit Cards Doubles, Loans Drop

Small-business owners nearly doubled their use of credit cards since 1993 while decreasing their reliance on bank loans 24%, according to a recent study.

Credit card financing for small business increased to 33.5% in 1997, from 17% in 1993, according to the study by National Small Business United and Arthur Andersen's Enterprise Group.

Other popular financing methods were trade credit, used by 20% of the small businesses surveyed; leasing, used by 16%; and personal and home equity loans, used by 16%.

The study also found entrepreneurs' use of private loans decreased to 15.8% in 1997, from 23% in 1993.

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