Are your business expenses paid for with a personal credit card?

It happens to everyone at some point, and we've all been guilty of the occasional credit card mismatch! If, like 4 out of 10 small business owners, you're always relying on a personal credit card to cover your business expenses, it's probably time to look into other funding options.

I’m sure you don’t need us to tell you that the last 18 months have been difficult for a lot of businesses around the country.

According to a survey of 1255 small firms conducted by SME non-bank lender ScotPac, 2 out of 3 (66.1%) are attempting new finance options to assist them build their way out of the crisis.

This is a significant increase from the beginning of 2021, when only 46% of the population was introducing new funding.

Buy plant and equipment (57.5%), enhance cash flow (40.6%), and pay down debt are the top three reasons SMEs seek new finance sources (34.3 % ).

However, one troubling statistic drew our attention.

Owner funds were used by over half of the SMEs (55.4 %) when asked what new sources of funding they had introduced over the last year to keep their business operating, with 42.5 % depending on personal credit cards.

“You shouldn’t mix business with pleasure,” as the phrase goes.

This is one of those occasions.

For a variety of reasons, it’s extremely probable that there are far better solutions available for your company that will help you separate your business and personal costs, as well as making it easier to anticipate your cash flow.

“We’d encourage business owners to seek professional advice about more sustainable funding options, especially if they’re relying on personal credit cards,” says ScotPac CEO Jon Sutton.

Asset and equipment finance (38 %) and government stimulus funds (38 %) are two other sorts of fresh capital that SMEs have turned to in the last year (27.6 % ).

As a new source of funding, demand for invoice finance has more than doubled since 2018, to 16.3 %, putting it on par with the number of businesses taking out a new overdraft (20 % ).

Do you want to look into new funding options for your company?

We make it our business to keep up with the latest funding alternatives and participants in the SME finance industry, and we make it our business to stay on top of the latest developments.

So get in touch today if you need money for your business but don’t know where to start.

We’d be delighted to walk you through the growing variety of funding choices available to small and medium-sized businesses like yours.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at

Disclaimer: The content of this article is general and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your situation and may not be relevant to circumstances. Before taking any action, consider your particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent.

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