Put It on My Card, Please Small Businesses Increasingly See Credit Cards as Financing Option

By Comerford, Mike | Daily Herald (Arlington Heights, IL), November 21, 1998 | Go to article overview

Put It on My Card, Please Small Businesses Increasingly See Credit Cards as Financing Option


Comerford, Mike, Daily Herald (Arlington Heights, IL)


Byline: Mike Comerford Daily Herald Business Writer

An explosion in the use of credit cards at small businesses is changing the way entrepreneurs finance their purchases, according to a new study.

Nearly half of all small businesses now use credit cards as a financing source for everything from start-up costs to ongoing small purchases. That is double the rate of just two years ago, according to the study conducted by Chicago-based Arthur Andersen and the National Small Business United.

As a result, petty cash drawers are remaining closed and traditional banking relationships are in flux. Local businessmen say they are not surprised by the exponential rise.

"I can't imagine being without it," said Tom Stanley, founder of Elk Grove Graphics. "We still have a petty cash fund, but I'd be hard pressed to remember when we used it last."

Stanley is co-owner of the $7 million-a-year graphics business along with his brothers, Bob and Jim. Their corporate card is an American Express business card with features that target small business users. It breaks out expenses for each brother, and the itemized purchases are passed along to the accountants.

American Express was the leader in targeting the small business owner, but MasterCard and Visa have joined in by offering business services to a wider customer base.

"Those who couldn't get an American Express might be able to get a Visa or a MasterCard. That is why I think we have seen the explosion of usage," said Todd McCracken, president of the lobbying group National Small Business United in Washington, D.C. "The credit card industry is just waking up to the small business market and promoting business uses."

Many small companies need quick cash to purchase fax machines, computers or other office equipment, said John Evans, department director of Arthur Andersen's Enterprise Group.

"I know of one company that used a series of credit cards to pay off their receivables and they paid off each card (on a rotating basis) so there were no finance charges," said Evans, whose department consults with small businesses. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Put It on My Card, Please Small Businesses Increasingly See Credit Cards as Financing Option
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.