Tag Archives: crunch

SMALL BIZ CREDIT USE

Financial blog Thinking Money has announced that Irish businesses are
using credit
cards to come to terms with their short-term finances. Anywhere between
a third and two thirds of
small businesses put cashflow as their greatest financial concern and
this strain
is only going to increase as the recession continues. Many small
businesses and sole traders are increasingly likely to take
advantage of their credit cards as a short-term form of credit. Credit
cards also
have the benefit that they can offer rewards and cash back too. This
enables businesses to temporarily allocate some of their expenses on a
business credit card providing a temporary and flexible method of debt
management. Thinking Money has previously stated that credit cards may
not be an ideal
long-term solution in managing SME debt, but can provide a reliable
stop-gap in the short-term, possibly even preventing a temporary,
insolvency shortfall.