Only 48 percent of small businesses sought accounts that would allow them to take on credit card debt to grow their companies in 2010, down from 55 percent in 2009, according to a new survey from the National Federation of Independent Business. This decrease was likely because 15 percent of those polled thought they would be unable to qualify for a new line of credit.
However, those that did seek new accounts that allowed them to take on credit card debt were approved at a higher rate than they were in 2009, the report said. Just 16 percent of applicants were denied altogether, while 41 percent got all the credit they sought.
"Unfortunately, the economic atmosphere for small businesses did not improve much in 2010," said Denny Dennis, NFIB Research Foundation senior fellow and report author.
A number of studies have shown that if small businesses are able to take on credit card debt, they are in a better financial position to turn a profit and increase payroll.