The National Small Business Association will soon reveal statistics that show small business owners are using their credit cards more often despite being unable to pay down their balance every month as they had in the past, according to a report from the Wall Street Journal. Over the last two years, many small business owners have seen their debt balloon into the range between $10,000 and $25,000 while fewer carried less than $10,000 in debt.
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Between June and December 2010, the number of small business owners who paid off their total balance every month dipped from 56 to 54 percent, while the amount of those with a balance of less than $10,000 on their account declined to 21 percent from 23 percent, the report said. Meanwhile, the number with more than $25,000 in debt rose from 10 to 11 percent during that period.
And because business credit cards aren’t restricted by the same federal regulations as those for consumers, more lenders are sending out that type of offer to small business owners en masse, the report said.
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Even the web giant Google, not exactly known for its dealings in the financial sector, is now offering small business credit cards, according to a report from Bloomberg Businessweek. However, these can only be used to purchase AdWords, the company’s targeted, keyword specific online advertising.