Helping small business owners find savings on key financial products
WalletHub conducted a nationally representative survey of over 200 small business owners about their financial needs and habits. The survey was conducted online from April 10 to April 14. View the full survey findings here.
With Small Business Week starting Sunday, a new survey from the personal-finance website WalletHub found that nearly 2 in 5 small business owners say the occasion helps their business.
Key Findings:
- Crippling Interest Rates: 63% of small business owners say high interest rates are hurting their business.
- Inflation Challenges: 75% of small business owners say inflation has made it more difficult to run their business.
- Low Tax Importance: Nearly 2 in 5 small business owners say low taxes are the most important factor for small business success.
- Unfair Card Terms: 58% of small business owners think it’s unfair that small business credit cards offer worse terms than consumer credit cards.
- Personal Card Reliance: More than 3 in 4 small business owners say they’ve used a personal credit card for business expenses.
- Crypto Resistance: 49% of small business owners are not in favor of accepting payments in cryptocurrency.
- Best Business Credit Card: Capital One Spark Cash Plus is the best business credit card overall because it offers an initial bonus of up to $1,000 and gives 2% cash back on all purchases.
- Best Business Bank Account: Live Oak Bank Business Savings Account is WalletHub’s Best Business Bank Account of 2023 because it has a 4% APY.
Q&A with WalletHub
How do small business owners feel about the economy?
“WalletHub’s new survey of small business owners found that 63% say high interest rates are hurting their business, while 75% believe inflation has made it harder to run their business. Many businesses are leveraged with variable-rate debt, not getting enough of a return on their cash, and trying to fight shrinking margins without alienating customers,” said Jill Gonzalez, WalletHub analyst. “After rebounding from the pandemic, small businesses have found themselves facing major headwinds yet again.”
How do small business owners feel about small business credit cards?
“A new WalletHub survey found that 58% of small business owners think it’s unfair that small business credit cards have worse terms than general-consumer credit cards. Most business credit cards lack some important user protections that were put into place after the Great Recession, especially when it comes to interest rate increases. This might help explain why more than 3 in 4 small business owners say they’ve used a personal credit card for business expenses,” said Jill Gonzalez, WalletHub analyst. “Small business owners should really have both business and consumer cards in their wallets. The best business credit cards are still worthwhile because they offer elite rewards, high credit limits and useful small-business tools.”
How much can small businesses save by choosing the best financial products?
“Small businesses can easily save more than $1,000 simply by choosing one of the best business credit cards. For example, Capital One Spark Cash Plusoffers an initial bonus of up to $1,000 and gives 2% cash back on all purchases,” said Jill Gonzalez, WalletHub analyst. “One of the best bank accounts could add hundreds in additional savings, depending on how much you deposit. Live Oak Bank Business Savings Account is a great choice because it has a 4% APY.
Should small businesses consider consumer credit cards and bank accounts?
“Small business owners who are sole-proprietors should consider credit cards and bank accounts intended for consumers in addition to those branded for business use. There’s no rule against using a consumer account for business, as long as you separate business and personal spending for tax purposes, and considering consumer accounts gives you more options. You can choose whichever account will save you the most money,” said Jill Gonzalez, WalletHub analyst.
