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Small-Business Owners Use More Credit    
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Owners of small businesses – described as companies with fewer than 25 employees and under $10 million in revenues – have more access to credit, higher credit limits and higher average loan amounts than the overall population, according to a study released Monday by Experian.

The Experian study evaluates incorporated and unincorporated businesses. Twenty-six percent of incorporated and 17% of unincorporated companies have a greater number of bankcard accounts with credit limits equal to or greater than $5,000.

Business owners also have greater average loan amounts on open bankcard trade lines. Incorporated and unincorporated business owners have 40% and 25% higher average loan amounts, respectively, than the overall population.

The study also found that business owners are more likely to be homeowners than the overall population – 85% vs. 76% for average consumers.

Generally, business owners tend to be more educated, wealthy, younger and more active than the average consumer. For example, incorporated business owners have incomes 35% higher than the overall population while unincorporated owners’ incomes are 24% higher.

To conduct its study, Experian compiled a sample of more than 1.2 million incorporated and unincorporated small-business owners, and contrasted data from its Business Owner Link file with its Insources consumer demographic database.
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