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:
Unsecured Credit Card Application - What You Should Know First
The Chinese are credited with coming up with numerous inventions including gunpowder, umbrellas, chopsticks, paper and paper money. Lamentably, (from Chinese point of view) the honors of coming up with plastic money went with early American capitalists.
Credit Card Processing Services - Third Party Agencies May Provide You Better Rates and Service
Traditionally, credit card processing has been the domain of banks Most merchants already have accounts with banks, and banks have never had trouble finding takers for their credit card processing services
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.
Overview of Student Credit Card
Today, credit card is not a symbol of luxury anymore Credit card is a great convenience, meaning that you don't have to worry about cash when making a purchase
Arbitration Firms Back Away from Business While a Credit Card Debt Resource Center Steps In
Two major arbitration firms are backing away from their primary business until credit card companies establish new guidelines to resolving disputes with unhappy customers. The credit card debt resource center, CreditCardDebt.org, offers access for credit card users to get help for their consumer debt and eliminate credit card debts.
Problem Called Credit Card Debt
Credit cards are no more a luxury, they are just about a prerequisite. So, you would imagine lots of folk going for credit cards. In fact, a large amount of folks posses more than one credit cards. So, the credit card industry is growing by jumps and bounds. However, the credit card industry and credit card holders are posed with a huge problem called 'Credit Card Debt'. In order to understand what 'credit card debt' actually means, we need to understand the workflow related to the use of credit cards as such.
All About Cashback Reward Credit Cards
Reward credit cards are very popular these days. This is because a lot of consumers are taking advantage of these unique card programs. They are easily attracted to the amazing gifts, perks, incentives and other credit card rewards that they can earn by merely charging their purchases and expenses on their reward credit cards.
