Startup small and medium-sized enterprises rely more on personal savings and lines of credit than for the same type of businesses once established, indicating the importance of having a track record or credit history.

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Startups often lack a credit history or track record, making it difficult to secure traditional financing, so they rely more on personal savings and lines of credit. Once established, businesses can leverage their credit history to access more diverse funding sources.

Startup Small and Medium-Sized Enterprises Rely More on Personal Savings