18/09/2009 -
Despite the recent upbeat economic news, many small businesses are continuing to struggle through the recession, causing cash flow concerns to remain prevalent.In a trend that is likely not confined to the United States, a recent survey of small business owners from American Express OPEN found that, despite increased optimism levels, 60 percent of businesses are currently experiencing cash flow issues. This is compared to 55 percent last year and 57 percent in the spring.
To remedy this issue, 13 percent of small business owners are using business or personal credit cards to fund their operations - the second most popular resource, after bank loans.
Companies that have primarily business-to-business operations are therefore encouraged to accept credit cards, or else they may lose the business of clients who prefer to pay by credit card.
In addition, for businesses that are having cash flow issues themselves, accepting credit cards can be an effective way to improve this problem - studies have shown that customers paying with credit cards tend to spend more per purchase, and the business does not have to wait for a check to clear to receive the money from the sale.

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