2 out of 5 Small Businesses Borrowed Money to Start Their Businesses According to PayCycle® Survey
Palo Alto, CA (PRWEB) May 19 , 2009 --With reports of the nation-wide difficulty of obtaining credit pouring in these days, this may drag down new business formation, as 38% of existing small business owners say they borrowed money to start their businesses, according to a proprietary survey data released today by PayCycle, Inc., America's #1 online payroll service. Twenty-two percent got a bank loan or used a credit card for some of the capital needed. The survey also found almost 20% of small businesses continue to depend on credit to run their day-to-day operations.
With this in mind, it's no wonder 43% of respondents said they are at least slightly worried about using credit to run their businesses. National trends show that borrowing money is becoming increasingly difficult. The National Small Business Association (NSBA) president Todd McCracken noted that nearly one-third of small businesses had their credit lines or credit card limits cut in the previous six months and 55% had difficulty securing credit, in a report to the U.S. Senate Committee on Small Business and Entrepreneurship in March.
"Small Business Owners are motivated, ambitious people who creatively find ways to thrive in any economy," said Jim Heeger president and CEO of PayCycle Inc. "The survey found that borrowing money continues to be an important option for many small business owners in order to keep their businesses successful."
Some small business owners, despite the need for extra cash, are refusing to use credit to help fund their business. The survey found 60% did not depend on credit to start their business and 63% do not depend on it for ongoing operations. 13% are dependent on credit during certain busy seasons only and 4% use credit on a one-off basis, for instance, for large purchases. "Mostly everything is purchased cash-n-carry, however, we do not have all the capital we need. We simply refuse to go into debt to sustain the business," commented one of the small business respondents.
Where the money comes from
When small businesses do borrow money, the survey found that they tend to turn first toward local banks or local branches of larger national banks, followed by credit cards and family or some even use a combination of any of these. The survey, conducted between May 4 and May 12, 2009, compiled responses from 198 small businesses randomly selected from PayCycle's broad, national base of over 85,000 small business customers.
About PayCycle
PayCycle is America's #1 online payroll service, serving more than 85,000 small businesses. PayCycle provides an easy-to-use, innovative, efficient service for small businesses, backed by outstanding customer support. PayCycle also powers payroll services for leading financial institutions including Capital One and PNC Bank, and provides client payroll services through many of the nation's accounting professionals. The PayCycle® service integrates with leading accounting programs such as QuickBooks®, Quicken®, Peachtree® and Microsoft® Money. PayCycle's unique "Do-It-With-YouSM" (DIWYSM) technology platform guides customers through the entire payroll process from paycheck to W-2 forms. PayCycle also holds PC Magazine's highest editorial honor for small business payroll, the PC Magazine Editors' Choice Award. Visit www.paycycle.com for a free trial of the service.
PayCycle is a registered trademark, and "Do-It-With-You" and "DIWY" are service marks of PayCycle, Inc. All other product names and trademarks are the property of their respective owners.
####
Related Themes:
Related Websites
Ask Financially Offers new Credit Cards Guide and Calculator to Beleagured Credit Card Holders Being stung again with interest rate rises.
Credit card holders can only look on as credit card giants Capital One and ABN Amro India (currently being purchased by HSBC from The Royal Bank of Scotland) recently announced interest rate increases, of up to 7% for some existing customers. Capital One's increases will come into effect after customers receive their March statements, continuing a trend in APR increases from most major credit card issuers both in the UK and globally. A tightening consumer credit market is not only making it harder for consumers to repay their credit card debt - just being approved for a credit card is now becoming a privilege for reducing numbers of consumers able to meet increasingly restrictive credit criteria.
The Most Beneficial Features of Low Interest Credit Cards
If you're seriously interested in knowing about low interest credit cards, you will need to read this article. This informative article takes a closer look at things you need to know about low interest credit cards. If you don't have accurate details regarding low interest credit cards, then you might make a bad choice. Don't let that happen: keep reading.
Deciding For A Credit Card
Today, credit cards have been a great demand for many people. This is due to some reasons. Some people find a credit card useful for paying their bills. It serves as an immediate source of payment if you don't have cash on hand. Others apply for a credit card if they want to travel for a vacation. No matter what the reason is, majority of people believe that they are in need of a credit card.
Apply Online For A Credit Card Now And Get One In An Instant
Believe it or not, you could apply for a credit card online and you may just as well be instantly approved usually via en email - informing you whether you have been blessed and accepted or disapproved and denied the comfort of plastic.
Credit Card Debt Statistics
Where Can You Get Credit Card Debt Statistics?
Tips In Applying For A Credit Card
Applying for a credit card nowadays is speedy and convenient. Probably because there are already a lot of credit card companies which are fighting to get your business. Credit cards are considered a necessity in these times. There are a lot of financial benefits that you won't be able to avail if you don't own a credit card.
Let Your Mouse Do The Walking: Applying Online For A Credit Card
Carrying a credit card around can offer you more spending advantages than carrying cash. Cash can be stolen, and once taken from you, you can never get your cash back. If you wish to spend thousands on one product, carrying the same amount in your wallet can be dangerous, not to mention damaging to your wallet's seams.
How To Choose The Best Credit Card Deal Online And Understand What You're Getting Into
This article explores the ins and outs of credit cards, how rates work and the application of applying for credit cards online.
Compare And Select The Best Credit Cards
Credit cards are more like necessities nowadays. Through the well-designed and attractive plastic cards, you can do almost all paying transactions. You could pay your utility bills, pay your shopping bills and order online good using the reliable cards.
Virtual Credit Card Number Makes Shopping On-line Safer
Millions of people each year are victims of identity theft As a result consumers have become even more cautious about the use and release of their credit card information
Guaranteed Approval Credit Card
It surely does not matter whatever information you are searching for is, with regards to "Credit Cards", I am convinced you'll find the below article useful. The above article as well as lots of others on this website are especially valuable for any person fascinated with phrases related to "Credit Cards", even if the queries are "Low Interest Rate Credit Cards No Annual Fee", "Unsecured Bad Credit Card" or even "Guaranteed Approval Credit Card".
Credit Card Incentives And Choosing The Best Credit Card
It is a well known fact that there are many different credit cards available today. In order to pick a credit card that will work for you, pick one that reflects your lifestyle as well as your ideal spending limit. In order to find the best credit card company and the best possible deal, you will need to do your research to find the perfect card for you.
Apply for Capital One credit card
Owning a credit card is a matter of convenience more than comfort. Carrying plastic cash keeps one safe and makes it easier for every Peron in their daily lives. Drawing money from the bank every time you need is much more tedious than just swiping your credit card and paying for it once every month. However the process of getting a credit card as easy as it sounds.
Credit Card News Alerts From Smart Balance Transfers
Credit card companies continue to raise rates and fees on consumers with good credit. To add insult to injury, they are now shortening the duration of 0% balance transfer offers and increasing the fees associated with these transactions, effectively making it more difficult for consumers to get out of credit card debt.
