SmallBusinessNewz

There are only so many sources of in-the-clear money: jobs, parents, perhaps plasma donation centers . . . .  Loans are pretty hard to get, too, and it seems that many small business owners are embracing credit cards after getting turned down by banks.

John Tozzi reports, "The percentage of firms using credit cards has jumped from 16% in 1993 to 44% today, according to surveys by the National Small Business Association, a trade group.  In the same period, the proportion using bank loans dropped from 45% to 28%."

Those stats aren't so bad by themselves; credit cards aren't innately evil.  The problem, as Tozzi continues, is that "numbers from the NSBA and the Fed show that between 20% and 30% of all small businesses carry a revolving credit-card balance, rather than paying their bills in full each month."

So it looks like small businesses are getting pushed beyond what's usually considered a comfortable point.  They might have to face higher interest rates and lowered spending limits as a result.

It's hard to blame banks for this problem, given that the soft economy has affected them, too.  Just be wary about participating in the trend, and if things get really bad, maybe put in a job application at Visa.