75% of Small Business Owners Use Personal Credit for Business Expenses According to Bluevine Study
A new national study from Bluevine reveals that many small business owners are using personal credit cards and loans to cover operational expenses due to a lack of preparation when applying for formal financing. The survey, which included over 800 U.S. small business owners, found that nearly three-quarters (73%) did not research lender requirements before submitting applications, while similar percentages failed to update financial statements or check their credit scores. The reliance on personal credit has grown significantly from the previous year's data and is causing tangible harm—42% of those using personal cards for business expenses reported negative effects such as increased utilization rates, household stress, and lower personal credit scores. Early-stage businesses under five years old are particularly vulnerable to application issues compared to more established firms. Bluevine emphasizes that better preparation can reduce delays or denials in financing applications by ensuring consistency across financial documents and ownership information.
Topics: business_credit loan_preparation personal_financial_risk