Company bosses are using their credit cards, savings and borrowing money from friends to stay in business, according to recent research. The study, by the Federation of Small Businesses, found that banks are failing to provide businesses with the funds needed to get through the recession.
The FSB found that late payment of bills was also hurting small companies. The research indicates that 41 per cent of bosses had dipped into their personal savings whilst 21 per cent had used a personal credit card . The FSB said that their research showed: 'an indication of self-reliance as they encountered a banking sector which refused to lend'.
A further study showed that in addition to using credit cards, businesses were trying to borrow from friends, relatives and company directors to stay afloat. The second study was conducted by the Forum for Private Business.
Companies use credit cards to stay in business
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Companies use credit cards to stay in business
Thu, 04 Feb 2010
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