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Financial Facts

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(openPR) 21 November 2009

Small businesses seeking loans from banks are forced to accept credit card business of the highest interest rates, financial figures revealed.

The number of loans decreased to small businesses in the United States between 0000 and millions of 23% in 2008, according to an analysis of SBA May, it published this year.

A recent study by the trade group of the branch of the National Small Business Association (NSBA) states that almost 60% of small businesses had used a credit card last year for the capital of companies. Less than half of respondents had a bank loan.


General

loans bad credit

Facts and Figures

cited the recession, that the main reason for granting the increasing reluctance of banks to provide loans to small businesses. But the alternative is full of drawbacks for entrepreneurs.

Small Business Loans are full, with interest rates from the government limited, while the credit card loans with variable interest rates can and credit limits, which are cut or changed to adapt to your wishes come to the issuing bank.


Finance finds

facts that traditional small business loans safer and more profitable than credit cards.

small company at the forefront of economic recovery / P>

financial point a decision last month by JPMorgan Chase, a new series of credit cards for small businesses as “ink to reveal.”


JP Morgan Chase Card

own balance reflects a significant decrease in loans in recent months. Top analysts think the bank for small businesses are the first reaction of the credit crisis.

“We believe that small businesses are really those who turn around the economy,” said Richard Quigley, president of the Chase Business Cards.


Chasing the


Facts and Figures

believes British banks is an example of the Chase in her attention shifting away from lending to small businesses to follow and to give credit to small businesses.

“It’s something that we, because we believe it continues to be an important opportunity,” said “Quigley.


Financial Information

found evidence for a series of forums on the Internet to the high and variable interest rates were not well received by small business owners to offer.


References


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