Survey Results Show Rate Hikes Will Cost Small Businesses $420 million

 
 
By Baselinemag  |  Posted 2010-06-04
 
 
 
BillShrink, a search engine that compares millions of product and service options against consumer needs, released the results of a study showing small business owners could end up paying more than $420 million in incremental finance charges this year because their cards aren't getting the same protections as consumer cards.

The survey found more than a quarter of all small businesses carry an average balance of $14,572, and smaller businesses (those with under $600,000 in monthly revenue) are more than twice as likely to carry a balance versus paying it off in full each month. Peter Pham, CEO of BillShrink, said part of the problem is that cash-strapped businesses are charging more on their credit cards as business lending continues to decrease.

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