The credit cards for small business are not given the same protection as those of other consumers. According to a study by BillShrink, more than 30 percent of the credit card interest rate was observed since January 2010. The data was taken from 2,300 small businesses.
According to Synovate study, it was revealed that mailings of corporate-card offers were increased by 256 percent in the first quarter of 2010. The Federal Reserve reported that 83 percent of small businesses in 2009 made use of business and personal credit cards that amount to short-term loans.
The Billshrink study reported that when compared to consumers, the small businesses pay off the monthly balances. However, the treatment from the credit card companies was different for small businesses. Compared to 40 percent of individuals, only a quarter of small business firms are not involved in paying monthly balance. It was found that the average debt held by a small business firm in the U.S. is $12,100 when compared to $7,020 for consumers.
Better credit ratings and larger annual revenues are to be found in small firms that pay off the balances. It was found that about 60 percent of companies carrying a balance have revenues below $149,000.