The Fed held rates steady at its FOMC meeting, but small business owners are struggling to access capital, and credit card usage is rising.
The average monthly credit card expenditure of U.S. small businesses has risen amid the highest interest rate environment in decades, according to Intuit QuickBooks.
Thanks to the high annual percentage rates on credit cards, here is what business owners need to know about relying on a card to keep a business going.The small business credit card is an important tool for credit purposes and managing cash flow — as long as the business can continue to meet its monthly payment obligations while maintaining inventory and service delivery, according to John Cabell, managing director of payments intelligence at J.D.
If business is slowing down and expenses aren't cut, covering those expenses with a credit card can be risky, said Derrick Longo, a wealth planning professional at Exencial Wealth Advisors. "Credit used correctly can be a phenomenal tool for businesses," Longo said. He recommends only using it to fill the gap of cash flow between when money is coming into the business and money is going out.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Fed buzz: words to watch for as the Fed sets ratesFed buzz: words to watch for as the Fed sets rates
Weiterlesen »
Fed meeting live updates: Fed expected to leave rates the same for a second consecutive timeFed funds futures pricing suggests a 99% likelihood that the central bank will hold steady on policy, keeping its target rate range at 5.25% to 5.5%.
Weiterlesen »
Fed meeting live updates: Fed expected to leave rates the same for a second consecutive timeFed funds futures pricing suggests a 99% likelihood that the central bank will hold steady on policy, keeping its target rate range at 5.25% to 5.5%.
Weiterlesen »
Fed's Powell says higher rates need to persist to affect Fed policy choicesFederal Reserve Chairman Jerome Powell said Wednesday that market borrowing costs would need to be sustainably higher for that to bear on future central bank monetary policy choices.
Weiterlesen »
Stock market today: Asian shares track Wall Street gains ahead of Fed decision on interest ratesAsian shares are mostly higher after Wall Street advanced to claim back some of the ground it gave up in another losing month. Tokyo's benchmark jumped 2.4%. Investors are awaiting a decision by the Federal Reserve Wednesday on interest rates. On Tuesday, the S&P 500 rose 0.6%, though it fell 2.2% in the month of October.
Weiterlesen »