A new report suggests that one in four of all entrepreneurs looking for finance plan to rely on their credit cards to raise the money.
Most entrepreneurs questioned thought that accessing traditional finance would be too hard, leading many to look for alternative ways of funding their business.
The report was carried out by the Entrepreneurs Organisation and Investec Bank.
It’s thought that the perception amongst entrepreneurs of the difficulty in getting loans may have led to a decrease in demand for them.
According to Reuters News Business Secretary Peter Mandelson has claimed that it is lack of demand for lending, rather than a lack of supply that is the problem.
He has urged banks to be more communicative and competitive in their approach to lending.
