Small firm bosses using personal credit cards
By UK CreditCards.com
Bosses of small British companies are increasingly being forced to make payments on their personal credit cards, according to new research.
The Federation of Small Businesses (FSB) conducted a study of 10,000 firms and found that one in five (21%) managers have settled professional bills with their personal credit cards in the past year.
John Wright, chairman of the FSB, explained that many companies are having to become more self-reliant as they are struggling to secure credit from banks.
In addition, he noted that financial pressures in the current climate are leading to some firms engaging in the practice of deferring payments on a more regular basis than before.
"Late payment is not a new issue, but it has been a particular problem in the past year and it is more important than ever that this worrying practice is brought to an end," he said.
The FSB research also found that 41% of small and medium enterprise bosses dipped into their personal savings in the past year, with 43% using their overdrafts.
Meanwhile, the Forum of Private Business also revealed this week that one in three managers had turned to "friends, relatives and company directors" in order to secure funds.