Small businesses are turning to consumer cards because they have more protections than business cards.
Small business owners say consumer cards are better for carrying balances for longer-term business investments, because the credit lines and the interest rates are not subject to arbitrary changes, as the interest rates on business cards are.
Forty-nine percent of small-business owners currently use personal cards for business, compared to 42 percent in 2009. By contrast, 59 percent of small businesses with employees used one or more business cards, down 5 percentage points from 2009, reports the National Federation of Independent Business. Story by Jeremy Quittner for Inc.
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