April 6, 2007 -- Small-business owners face considerable challenges in gaining access to capital from traditional lending sources, a recent survey shows.

In an online survey of 469 business owners conducted by the National Association for the Self-Employed, two-thirds of respondents said they struggle to find adequate funding resources. As a result, nearly 60 percent said they rely on personal finances as their primary source of funding for business startups. Even after their business is established, 36 percent of owners said they continued to rely on personal savings as an ongoing means of finance.

The main obstacles cited for blocking access to capital were credit ratings and a lack of collateral, the survey found.

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