One-third of small business owners uncomfortable with debt
Business owners feeling debt burden
More than one of every three small business owners currently feels uncomfortable with the current state of their company’s debt, Gallup revealed in a recent report.
According to Gallup, 36 percent of small business owners who have had business debt in the past reported feeling a lack of comfort with the current state of debt affairs for their business.
Small business owners (a random sample of 603 small business owners) could select from four options in the Gallup poll: 33 percent said they were “very comfortable” with the level of debt, 29 percent said they were “somewhat comfortable,” 24 percent claimed to be “somewhat uncomfortable,” and 12 percent reported being “very uncomfortable.”
Credit availability an issue for some
While, 38 percent of small business owners surveyed said that they had no need for additional credit, 20 percent reported not being able to obtain all of the credit that they need. In addition, 75 percent of those who were unable to obtain sufficient credit said that this inability has had a negative effect on their business.
Debt hard to pay down
Almost exactly half of those owners surveyed (49 percent) reported difficulties repaying business debt. According to Gallup, 10 percent said it is “extremely difficult” to pay down current business debt, while 10 percent said it was “very difficult” and 29 percent said it was “somewhat difficult.”
Since the economic downturn, business credit – both in the form of bank loans and business credit cards – has been more difficult for small business owners to come by.