Small businesses may be sending a clear signal to card issuers: stop selling access and start selling usefulness. A new PYMNTS Intelligence report suggests many small- to medium-sized businesses (SMBs) already feel confident they can get credit. What they want now are cards that work harder for the way they actually run their businesses.
That is one of the more striking takeaways from SMB Growth Monitor: Small Businesses, Big Credit Needs, produced by PYMNTS Intelligence in collaboration with i2c. Based on a survey of 514 U.S. SMB executive, the report finds that small businesses use credit in different ways depending on size, industry and circumstance.
But across those differences, a common theme emerges: many firms are looking for more flexible, more tailored credit products, and many appear willing to pay for them.
- 83% of SMBs said they think they would get approved for a new business credit card.
- $125.65 is the average annual fee SMBs said they would pay for flexible spending features such as installments or dynamic limits.
- 56% said they are very or extremely interested in a card that lets them choose between earning rewards and getting a lower APR each statement period.
That helps shift the story beyond simple borrowing demand. The report shows issuers may have more room to compete on design, controls and pricing than on approval alone.
Nearly two-thirds of SMBs said they believe they would be approved for a business credit card with their desired spending limit, and another 19% said they might be approved, though not for the full amount.
That confidence changes the market. It gives providers a chance to win business by offering tools that fit real operating needs, from flexible due dates to employee controls and installment options. This is where the growth opportunity sits.
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The report also suggests that flexibility is becoming a practical business priority, not a premium extra. More than half of SMBs showed strong interest in cards with payment due dates aligned to cash flow or receivables.
Just over half also expressed strong interest in customizable spending limits, hybrid debit-credit cards and subscription-based cards with unique numbers for specific vendors or employees. Younger firms showed especially strong willingness to pay for flexible solutions, with businesses less than five years old saying they would pay an average of $149.37 annually for those capabilities.
Other findings add texture to the picture. High-revenue SMBs use business credit cards more heavily than smaller firms, while lower-revenue businesses lean more on personal cards.
Planned spending still dominates business card use, with 53% of usage described as mostly or completely planned. At the same time, personal cards are more likely to be used for emergencies and convenience.
The report also found that firms that feel more confident about surviving the next two years make 38% more business card transactions per month than firms that feel less secure.
For card issuers and for FinTechs, too, that points to a market where better credit products could do more than fund purchases. They could help businesses operate with more confidence and more control.
