Half of Retail Small Businesses Rely on Daily Sales to Stay Afloat

A growing share of retail small businesses are not planning for the next downturn so much as financing their way through the next week, and PYMNTS Intelligence data showed just how thin that margin has become.

The PYMNTS Data Book “How Retail Small Businesses Finance Survival in Uncertain Times” sketched an economy where access to capital is often less about expansion and more about endurance.

The report found that many small- to medium-sized businesses (SMBs) are operating with little slack, dependent on daily receipts or whatever cash is already sitting in the bank. When those buffers fail, owners increasingly lean on financing that is faster and easier to tap, even if it pushes risk onto the individual rather than the business.

There’s a line between firms that can use credit strategically and firms using it as a substitute for cash, a distinction shaped by revenue trajectory, business age and industry exposure to supply shocks and tariffs.

Half of SMBs rely on day-to-day sales proceeds or cash already in the bank to survive, a sign that routine volatility can become existential.

Credit cards are the most common on-demand funding tool in the stack, as 64% of SMBs with financing access have business credit cards available.

Among businesses that said they are only slightly or not at all likely to survive, 27% used personal credit cards in the last 12 months, pointing to a shift from business balance sheets to household ones when options narrow.

What stood out beyond the headline numbers was how quickly financing becomes a proxy for confidence and operational choices. The report found that access to financing tended to lift a firm’s perceived ability to navigate disruptions, and that those with excess cash and financing access were 23% more likely to be very confident about handling supply chain shocks tied to tariffs. That matters because confidence changes behavior.

A firm that believes it can ride out disruption is more likely to hold inventory, renegotiate with suppliers or shift sourcing. A firm that cannot may do the opposite, cutting too deep and too fast.

The report also suggested that friction, not just availability, shapes outcomes. High fees and interest rates deter usage even among firms that technically have access, especially in smaller cities. That helps explain why some owners said they do not use financing because they do not need it, yet often also lack access in the first place. Self-reliance can be a choice, but it can also be a story owners tell themselves after the market has already decided.

Finally, the report drew lines across business maturity and sector response. Older firms are less likely to have access to financing, but when they do, they are more likely to use it strategically, while younger firms lean on it out of necessity. Retail is the industry most likely to replace suppliers with domestic ones in response to tariffs, while hotels and restaurants lean more toward negotiation and substitutes, and professional services are least likely to have any plan at all.

At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.