The Cash Flow Problem
» The Cash Flow Problem, Volume 1, Issue 3, 2001
If respondent usually borrows when confronting a cash flow problem.
5. When you borrow for a cash flow problem, what is the most likely source? Is it:?
Response | ||||
---|---|---|---|---|
1 | A loan or line of credit from a commercial bank | 70 | ||
2 | A loan or line of credit from another financial institution | 10 | ||
3 | A credit card | 8 | ||
4 | A business supplier | 0 | ||
5 | Family or friends | 11 | ||
6 | Other | 1 | ||
7 | DK/Refuse | 0 | ||
Total (%) | 100 | |||
N | 224 |
Notes: Seventy (70) percent of small employers who borrow when confronting a cash flow problem take out a loan or draw on a line-of-credit from a commercial bank (Q#5).