Australian Businesses Reduce Credit Card Spending in 2023 & 2024
About the study
Small Business Loans Australia commissioned a survey of 202 SME directors and decision-makers to find out the proportion that would reduce or increase the number of business credit cards they own, card limits and card spend over the next six months to control expenses and interest incurred, as economic conditions tighten.
Respondents were also asked to specify whether they will use direct payments or EFTPOS more often to discipline themselves during times of record rate rises.
WILL BUSINESSES REDUCE OR INCREASE
THEIR CREDIT CARDS TO DISCIPLINE
Small Business Loans Australia found that 84 per cent of SMEs hold credit cards. Among these, 23 per cent of businesses stated that they are looking to reduce the number of credit cards the business holds to control expenses.
One in four businesses (25%) said they would increase their number of credit cards to free up more cash to spend.
Furthermore, 14 per cent stated they would increase the credit limit on at least one of their credit cards and 38 per cent don’t plan on making any changes to their credit cards
Across the States, businesses in South Australia are most inclined to reduce the number of credit cards they own to control spending, at 37 per cent. This is followed by:
- 28% of NSW businesses
- 20% of Victorian businesses
- 19% of Queensland businesses
- 11% of West Australian businesses
The study found that businesses in NSW are most likely to increase the number of credit cards to free up more cash to spend (30%). This is followed by businesses in Queensland (28%), South Australia (27%), Victoria (23%) and Western Australia (16%).
A quarter (26%) of West Australian businesses said they will increase the credit card limit on at least one of their cards in the next six months. This compares with:
- 21% of Victorian businesses
- 18% of South Australian businesses
- 9% of business in NSW
- 6% of Queensland businesses
Over the next 6 months, do you think your business will reduce or increase the number of credit cards it uses to control expenses and interest incurred?
WILL BUSINESSES USE EFTPOS OR MAKE
DIRECT PAYMENTS TO KEEP SPENDING IN
The study found contrasting results across the major states. Four in five businesses (83%) in Western Australia stated they will use EFTPOS and direct transfer over the next six months to help discipline their credit card spend.
In contrast, just 76 per cent of Victorian businesses and 72 per cent of businesses in NSW said the same. This compares with 53 per cent of Queensland businesses and only 40 per cent of South Australian businesses.