38% of small businesses are using credit cards as a funding mechanism (!!!) At today's pricing this is suicidal. If this number indicates those small business who have effectively been forced into this use of credit (and I suspect it is) we're in deep kimchee - nearly 4 in 10 small businesses are likely to fail in the next two to three years as a consequence of this.
Far too many (11%) small business owners are collateralizing real estate as a means of funding operations. If I'm reading this report right, these are businesses where the owner has pledged his or her personal residence as security.
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