Small Business Owners Face Credit Nightmares

Posted by: Desiree B. | Feb 25,2008

Faced with an economic downturn, many small business owners are confronted with escalating debt that can quickly become a credit nightmare. In the Financial Headlines this morning, there’s new information about the struggles small businesses are facing in the face of a recession. Discover Financial Services provides information about how small companies (with less than five employees) are handling the economic downturn.

 

Poll Shows Small Business Owners Struggling with Effects of Economy

 

In a Discover-sponsored poll that queried small business owners about their confidence in the economy, 28% of business owners said that they have had to borrow money to pay bills for their business. 59% of business owners said the new government rebates won’t have much impact on their business. And 41% of small business owners said that the economy has resulted in reduced business spending.

 

Small Business Owners Hit Hard by Economic Downswing

 

As one friend recently said to me, the credit nightmares are no longer a domino effect- they’re now causing a boulder effect. And as so often happens during an economic downturn, its small businesses that can get hit the hardest, and struggle the most to stay alive. As interest rates remain perilous, small business owners are seeing their credit lines reduced or eliminated, further discouraging business expansion. Problems at home with personal debts just serve to make the whole situation even worse.

 

If you’re experiencing too much debt and not enough relief, consider a low interest loan from LowerMyBills.com. LowerMyBills.com lets you compare rates from multiple lenders before you get a loan so you know you’re getting the best deal.

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