Small and mid-sized businesses (SMBs) are rewriting the credit playbook. Once focused on access, today’s SMBs are prioritizing flexibility—from installment features and dynamic limits to virtual cards and reward optimization. Most expect to receive approval for new credit, but their loyalty will depend on the issuers’ ability to tailor products to their shifting needs. The “SMB Growth Monitor” reveals that confidence, planning and adaptability now define how Main Street firms borrow, spend and grow.
Credit Confidence
A striking 83% of SMBs believe issuers would approve their applications for a new business credit card—far more than the consumer average. That optimism stems from strong credit histories and existing untapped lines. The implication for issuers: growth won’t come from expanding access, but from improving value.
The SMB Spending Divide
SMBs keep their borrowing deliberate. These businesses plan 53% of business card spending. Spontaneous use is nearly twice as likely to occur on personal cards. Business credit funds payrolls and inventory, while personal cards fill short-term cash flow gaps or cover emergencies.
Size Matters
Credit intensity scales with size. SMBs generating more than $1 million in revenue per year completed 25 credit transactions in the past month. This is six more transactions than their micro-sized peers. The hospitality and retail sectors lead usage, while younger firms transact less frequently as they build up reserves.
The SMB Confidence Effect
SMBs confident they will survive the next two years make 23 monthly credit transactions. This is approximately 28% more than those who are uncertain about their survival outlook. The data show that resilience and optimism are directly correlated with credit utilization.
Flexibility Premium
SMBs say flexibility is worth paying for—literally. On average, firms would pay $126 annually for credit features such as dynamic limits or installment options. Rewards and networking perks rank close behind, showing that SMBs now value tools that will enhance both liquidity and loyalty.
The SMB Feature Fascination
More than half of SMBs want cards that offer a balance between lower rates and higher rewards. Others are drawn to virtual numbers, flexible due dates or adjustable limits—features that mirror the personalized finance tools that consumers now expect.
Emergency Edge
One in five SMBs rely on personal cards during emergencies. This share is 82% higher than those using business cards for the same purpose. Even in a digital-first credit landscape, entrepreneurs still default to the familiar plastic in their wallets when cash crunches hit.
Across all segments, SMBs are confident borrowers but selective spenders. The new competition among issuers isn’t about who grants credit—it’s about who can offer the right mix of flexibility, features and control.
About
PYMNTS Intelligence is a leading global data and analytics platform that uses proprietary data and methods to provide actionable insights on what’s now and what’s next in payments, commerce and the digital economy. Its team of data scientists includes leading economists, econometricians, survey experts, financial analysts and marketing scientists with deep experience in the application of data to the issues that define the future of the digital transformation of the global economy. This multi-lingual team has conducted original data collection and analysis in more than three dozen global markets for some of the world’s leading publicly traded and privately held firms.
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