Credit gives small- to medium-sized businesses (SMBs) room to act, whether they need to pay expenses or finance their next expansion. But access to credit and the reasons for using it differ sharply by business size.
Overall, credit access climbed to 53% of SMBs in September 2026, the highest share recorded across 20 editions of this study conducted since April 2024. Yet this still leaves nearly half of SMBs unable to tap financing that could help them grow, smooth cash flows or provide a financial lifeline during a downturn.
The smallest businesses trail substantially in credit access. In September 2026, just 46% had credit available, compared with 58% of the largest. They also use that financing differently. Fifty-five percent of borrowers with annual revenues between $1 million and $10 million used credit mainly to strategically manage their business or fund growth in the last year, compared with 33% of those earning up to $150,000. Among the smallest borrowers, necessity is the most common reason. Nearly half used credit mainly to cover expenses they otherwise could not meet.
Strategic borrowing also coincides with stronger reported growth and greater confidence about staying in business. For providers, these findings point to the importance of both expanding access and meeting different borrowing needs. Businesses using the same credit products may be funding planned investments, managing recurring expenses or covering costs they have no other way to pay.
Key Findings
- The largest SMBs are the likeliest to achieve revenue growth.
Two-thirds of SMBs with $1 million or more in revenue reported growth in 2025, compared to 37% of firms with $150,000 or less in revenue. The largest SMBs were also far more confident they would stay in business, at 95%, versus 80% for the smallest.
- Half of the largest SMBs have access to credit.
On average, across 20 editions, 50% of the largest SMBs reported access to credit, falling to 37% for the smallest firms, a 38% difference. These findings reveal twin gaps: limited access even among larger SMBs and a more acute shortfall among the smallest ones.
- With access, the largest SMBs use credit more often.
Across 20 editions, an average of 76% of the largest SMBs with access to credit used it, compared with 67% of the smallest.
- Strategic borrowing rises with revenue size.
More than half of the largest SMBs that used credit mainly borrowed to strategically manage or grow their businesses, compared with 33% of the smallest. The smallest borrowers were more than twice as likely to borrow out of necessity.
- Business credit cards lead across all revenue sizes.
Two-thirds of the largest SMBs with access to credit used a business credit card, compared with 32% of the smallest. Online business loans were much less common.
Larger SMBs Have Greater Credit Access
Credit access has broadened, but roughly half of SMBs have no available credit, and the smallest firms are unlikely to have or use financing.
Credit access stands at its highest level in the 20 editions covered, yet nearly half of SMBs have no available financing. In September, 53% could draw on at least one loan or credit card if needed, compared with an average of 45% across all 20 editions.
Larger businesses consistently report more access than the smallest. In all 20 editions, firms with annual revenues of between $1 million and $10 million were considerably more likely than those generating up to $150,000 to have access. On average across the studies, 50% of those in the largest revenue band could access credit, compared to just 37% of those in the lowest. This gap is especially notable, given that SMBs in the bottom tier currently account for more than one-third (36%) of all SMBs, compared to 27% for those generating $1 million or more.
Most businesses that have credit available use it. In September, 73% of those with access had used at least one source in the previous 12 months. This share is close to the 20-edition average of 74%. Because only about half of SMBs had access, this means 39% of all SMBs used credit, the highest share in 20 editions and higher than the 33% average. But the size divide extends to how businesses use the credit available to them. Across the 20 editions, usage averaged 76% among the largest firms with access and 67% among the smallest. In September, the gap was 79% versus 64%. Smaller firms are thus less likely to draw on credit when it’s available and less likely to have access in the first place.
Smaller SMBs Borrow More Often Out of Necessity
Using credit strategically to manage the business or fund growth becomes more common as annual revenue rises.
The smallest SMBs most often turn to credit because they have no other way to cover an expense. The largest typically use it strategically to manage or grow their business. This distinction helps explain what SMBs of different sizes actually need from financing, even when they use the same products.
Overall, 44% of September borrowers used credit primarily for strategic purposes, compared with 34% borrowing mainly out of necessity. The divide is sharper at the ends of the revenue range. Fifty-five percent of the largest borrowers used credit mainly to strategically manage their business or fund growth, compared with 33% of the smallest. Necessity followed the opposite pattern. Forty-eight percent of the smallest borrowers relied on credit mainly to cover expenses they otherwise could not pay. For the largest borrowers, 20% did so.
Business size does not tell the whole story, however. Even among the largest borrowers, one in five used credit mainly out of necessity. Across revenue groups, 19% to 28% gave strategic uses and necessity equal weight, showing how financing can serve both needs within the same business.
For providers, understanding why an SMB customer borrows helps clarify whether financing supports a planned business decision or fills a gap with no alternative source of funds.
Business Credit Cards Lead
Business cards reach more than twice as many SMBs with credit access as personal cards do.
For SMBs with credit access, business credit cards are the most widely used financing tool. Fifty-one percent used one in the previous 12 months, more than twice the 21% that used a personal card. Bank working capital loans followed at 12%, while every other individual source reached fewer than one in 10.
More broadly, SMBs are making greater use of business credit cards and relying less on personal funding. Among firms with credit access, business card use rose modestly from an average of 48% in 2024 to 51% in September 2026. Use of every personal funding source measured, including personal credit cards, was lower in September than its 2024 average.
Business credit cards lead at every revenue level, but the smallest firms are less than half as likely as the largest to use them. Among SMBs with access to credit, 32% of the smallest used a business card, compared with 66% of the largest. Usage rose with revenue, reaching 53% and 58% in the middle groups.
Online business loans have a much smaller reach, used by 3.9% to 12% of SMBs with credit access across revenue groups. Business credit cards therefore remain the most widely used option, even where adoption is relatively low.
Business credit card users also report stronger performance than personal card users. Revenue growth was more common among the former, at 59% for business cards versus 47% for personal cards. The same pattern holds for strong confidence in surviving the next two years, at 92% versus 76%, respectively. Some firms used both types of cards, so the groups overlap. These differences do not establish that using a business card improves performance.
SMBs borrowing mainly for strategic purposes are more likely to report revenue growth and feel confident about staying in business.
How SMBs use credit is closely tied to their reported performance. In September, 68% of businesses mainly borrowing to strategically manage or grow operations reported higher revenue in 2025 than in 2024. For those borrowing mainly out of necessity, 46% said the same. Those giving both purposes equal weight fell between them, at 57%. Strategic borrowers have led necessity borrowers on this measure in 17 out of 20 editions.
Revenue growth was less common among businesses that did not borrow, whether they had credit available (42%) or lacked access (44%). These findings connect borrowing decisions with business performance, but do not establish that credit caused the growth.
Strategic borrowers are also the most confident they will stay in business. Ninety-four percent of SMBs that mainly borrow to strategically manage business or fund growth said they were very or extremely likely to remain in operation over the next two years. For necessity borrowers, 82% said the same. Strategic borrowers have expressed greater confidence in all 20 editions.
Businesses with available credit that chose not to borrow also had a strong outlook. Eighty-nine percent said they were very or extremely likely to survive the next two years. Their confidence exceeded that of necessity borrowers and firms without credit access, both at 82%. This suggests that access to credit can help businesses feel secure, even if they don’t draw on it.
Revenue growth is more common among larger SMBs, which also have a stronger outlook. The largest SMBs were nearly twice as likely as the smallest to report revenue growth, at 68% versus 37%. The share rose at each revenue step, reaching 41% and 54% in the middle groups. Across all SMBs, 49% reported an increase in annual revenue.
The largest firms also stood out for their confidence in staying in business. Nearly all (95%) said they were very or extremely likely to survive the next two years. Eighty percent of the smallest firms said the same. Because larger SMBs also have wider access to credit, having financing available to navigate commercial setbacks or cash gaps could help explain why they feel more confident about the next two years.
Most Nonborrowers Say They Don’t Need Credit
Most businesses with unused credit have no current need for it, but high costs keep a sizable minority from using it.
Having credit available does not mean a business needs to borrow. Nearly two-thirds (64%) of SMBs that left available credit unused in September said they did not need it. This was the leading reason in every edition, averaging 66% across surveys.
For others, financing terms stand in the way. In the latest survey, 29 cited high fees or interest rates, making cost the most common obstacle. Repayment amounts and a lack of rewards or deals were each cited by roughly one in 10.
These findings give providers a clearer view of where more attractive terms or offers could make a difference. Lower costs may encourage some businesses to use available credit, but most nonborrowers report no current need. For that larger group, demand will likely depend on a change in commercial goals or economic conditions.
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Methodology
The PYMNTS Intelligence SMB Growth Monitor series draws on 10,523 responses from U.S. SMBs across 20 editions fielded from April 2024 to September 2026, with 412 to 583 SMBs per edition. The latest edition surveyed 509 SMBs in September 2026. Results are weighted to reflect the broader U.S. SMB population, and all businesses included have a physical location.
