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Small firm owners turning to personal loans

Almost a third of small firm owners are prepared to take out a personal loan to finance their business, according to research by investment bank Close Invoice Finance.

The survey found that 30% of small business owners would take out a personal loan to help their company and 6% would use their own credit cards to help their firm stay afloat.

20% of respondents revealed that they would approach family and friends for money for their business - double the percentage that said this in last year's survey.

"SMEs continue to feel the effects of the lack of funding available from traditional sources. This has forced more and more SME owner managers to pursue risky short term strategies to secure cashflow and in the process, putting themselves and those closest to them, under intense pressure," said David Thomson, chief executive of Close Invoice Finance.

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Post Date: July 8th, 2009