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Data for today’s episode is provided by Mercator Advisory Group’s report — Payment Cards and B2B Payments: Riding a Wave of Positivity.
Top 5 reasons small business owners use personal credit cards:
- The top reason small business owners use personal credit cards is better rewards (48%)
- Small business owners also report that using a personal account is easier (45%)
- Small business owners trust their personal cards, 37% reporting better cardholder protections
- “The added business reporting and control functions of business cards were not needed” (33%)
- “Our company was not willing to underwrite cards for employee use” (30%)
- Small business owners might also be wary of the liability associated wiht business cards, 21%
- 21% of small business owners were not approved for business credit cards
About the report
Mercator Advisory Group’s new Insight Summary Report, Payment Cards and B2B Payments: Riding a Wave of Positivity, reveals that U.S. small businesses are largely positive about the prospects for the future of their respective firms with regard to revenues, profitability, and employment. The report is the first of three from Mercator’s annual Small Business Payments and Banking Survey Series, a part of Mercator’s Primary Data Service. It is based on findings from Mercator Advisory Group’s online survey of 2,002 U.S. small businesses fielded in March and April 2019.
The survey’s charts show the primary payment methods used by type, and they reveal attitudes toward cash flow and line of credit. The findings include small businesses’ criteria for choosing a new credit card for the business, which differ by size of firm and indicate the average number of cards held per company.
