In the current covid climate, small businesses are struggling more than ever. One way to help them survive is to offer a business card line of credit. This can give them the funds they need to keep their doors open and their employees paid. It can also help them take advantage of opportunities that may arise, such as discounted supplies or new contracts.
Don’t miss another episode of Truth In Data! Click on the red bell in the lower-left corner of your screen to receive notifications as soon as the episode publishes.
Data for today’s episode is provided by Mercator Advisory Group’s report – U.S. Small Businesses are Reeling as a Result of COVID-19
6 in 10 Small Businesses Report Using Their Business Card Line of Credit Due to COVID:
- 59% of small businesses report using their business card line of credit because of COVID-19.
- 43% of small businesses report they expect to use their business line of credit more as a result of COVID-19.
- 41% of small businesses expect to use their main business card more in the next 6 months.
- 14% of small businesses expect to use their business line of credit less.
- Perhaps related: 9% of small businesses report being “very positively impacted” by COVID-19.
- 2% of small businesses have exhausted the credit line on their main business card.
- Mercator projects that opportunities exist for non-card related lenders to offer loans that have lower overall costs to small businesses.
Mercator Advisory Group’s new Insight Summary Report, 2020 Small Business PaymentsInsights, COVID-19 and B2B Payments & Cards – The Result of the Pandemic, reveals that U.S. small businesses have a much less positive view of the future than in previous years. The report is the first of three from Mercator’s annual Small Business PaymentsInsights Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s online survey of 2,000 U.S. small businesses fielded in March and April 2020.
The report details the ways COVID-19 has changed small businesses and their outlook on the near-term future of their businesses. The report also provides insight into how small businesses bank and pay for goods and services, their banking relationships, how they view technology and their top business concerns.
“Small businesses have been hit hard by the pandemic. In many ways, more than their larger counterparts. Organizations that service small business have an opportunity to help these firms as they try to come out of the COVID crisis,” states the author of the report, Pete Reville, Director of Primary Data Services including Small Business PaymentsInsights Survey Series at Mercator Advisory Group.