NEW YORK—Small business credit card debt is on the rise, and it’s due in part to inflation, according to new data.
An analysis released by the Bank of America Institute found small business credit card balances are up 18% since 2019, Small Business Trends said.
“Small businesses reach for credit cards for many reasons. But in 2024, the main factor putting financial pressure on businesses seems to be inflation,” Small Business Trends said.
In fact, a recent survey by Goldman Sachs found that 71% of small business owners “feel that inflationary pressures have increased on their businesses over the past three months,” Small Business Trends noted.
Additional Findings
Turning to credit cards is just one of the adjustments that small businesses are making, according to the analysis. In addition, 47% said they are raising prices, 45% are working more hours, and 32% are reducing their own salary, Small Business Trends added.