Nearly 25% of small companies relied on their business earnings, among other sources, to meet their capital needs, according to a recent Arthur Andersen survey of 643 small and midsize companies. One-third of the small companies used no outside financing at all.

Percentage of companies that used the following financing methods during the past 12 months:

Company size: 0 - 19 employees 20 - 99employees
Commercial Bank loans 36% 68%
Credit cards 27 12
Earnings of business 24 39
Private loans 18 9
Personal bank loans 17 6
Vendor credit 14 16
Leasing 10 22
SBA guaranteed loans 3 6
Private placement of stock 3 3
Venture capital 1.5 1.8
Other 5.6 9

Source: "Survey of Small and Mid-Sized Businesses: Trends for 1995," Arthur Andersen Enterprise Group, Chicago, August 1995.

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