Scottish business owners turn to personal credit cards

Wed, 03 Feb 2010

The credit crunch has impacted on small business owners so severely that many are relying on their own credit cards to keep their companies afloat, it has been revealed.

Research conducted by the Federation of Small Businesses (FSB) in Scotland suggests 22 per cent of bosses have used their personal credit cards to support their firms over the last 12 months.

Meanwhile, 14 per cent have relied on family support, 38 per cent on personal savings and 31 per cent have used retained profits.

As such, the representative body has called for more to be done to stimulate bank lending.

"The cupboard marked 'emergency' is bare and, if the issue of bank lending is not resolved urgently, businesses will not have the working capital to take advantage of the recovery - making any upturn more fragile and sluggish than need be," confirmed the FSB's Scottish policy convener Andy Willox.

Meanwhile, the government is set to launch a pilot scheme which will allow consumers in debt to pay for outstanding council tax bills and speeding fines by credit card.

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