The biggest annual survey of Scotland’s SMEs found that a staggering 25 per cent of Scotland's small companies are using credit cards to finance their business. The survey was conducted by the Federation of Small Business (FSB) in Scotland.
It showed how cheap interest rates have tempted thousands of small companies to switch to plastic, while shunning traditional sources of funding.
Just 9 per cent of SME owners now borrow from their family and friends, down from 37 per cent in 2000.
John Downie, Scottish parliamentary officer for the FSB, insisted the trend towards credit card finance was not a cause for concern. "If businesses are using credit cards to pay a bill or buy something they need when they've got money coming in over the next few days, the cost can be minimal," he said.
