With banks cutting down on the small business loans, a lot of small business startups depend on credit cards in order to meet their business spending needs. In the study in 2006, about 58% of the small-business owners relied entirely on credit cards for startup money. As a result, there are more companies incurring debt as opposed to reaping the initial profits estimated. For an instance for every $1000 on the credit card expenses, the chances of the firm closing down increases by 2.2%. so as an advice to all the small business owner, it wouldn’t be ideal to start your business entirely on credit card expenses.