According to a recent Wall Street Journal article, the number of businesses using credit cards has significantly increased over the past decade. 80 percent of Small Businesses in the U.S. now use credit cards for their working capital.
Although business credit cards come with high interest rates that can increase without warning, about 75 percent of small businesses applicants are approved. This comes at a time when about 60 percent of bank loan applications are rejected for small companies.
Without the bank options for capital, it seems business owners are turning to this riskier and more expensive means of credit. In addition to the number of businesses using credit cards, those businesses are also carrying higher balances than ever before.
The full Wall Street Journal article can be found here.