Healthy Small Businesses Report 42-Point Edge in Card Approval Confidence

Small businesses are not just borrowing to survive. They are using credit cards as operating systems, and they are willing to pay for features that make day-to-day cash flow easier to manage.

“SMB Growth Monitor: Small Businesses, Big Credit Needs,” a PYMNTS Intelligence collaboration with i2c, finds that most small and medium-size businesses (SMBs) feel confident about getting approved for new credit, which shifts competition away from access and toward product design.

The report is based on a survey of 514 senior executives at U.S. SMBs. In that environment, credit cards are less a last resort and more a toolset for planning, control and resilience, especially for firms trying to grow while still absorbing surprises such as emergency repairs, last-minute inventory needs or shifting customer demand.

83% of SMBs think they would get approved for a new business credit card, reinforcing that issuers are competing on features and pricing more than on gatekeeping.

53% of business credit card use is mostly or completely planned, highlighting how business cards often support predictable, budgeted spending rather than impulse use.

56% of SMBs are very or extremely interested in a card that lets them choose between earning rewards or getting a lower APR each statement period, signaling demand for products that adapt to changing priorities.

The nuances sit in the “how,” not just the “what.” Larger SMBs lean more heavily on business cards, and also transact more frequently, which suggests that credit access alone does not define engagement. Usage tracks with operating complexity. Industry matters too: retailers and hospitality firms are among the most active credit users, while personal and consumer services firms show lower transaction volume, reflecting different cost structures and purchasing cadence.

A second layer is the split between planned and unplanned spending. Business cards tend to fund scheduled expenses, while personal cards are disproportionately used for surprises and emergencies. That is not merely a compliance or underwriting issue. It is a product gap. SMBs are effectively building a two-track credit strategy, using business tools for structure and consumer tools for flexibility when the unexpected hits. That dynamic creates an opening for issuers to win share by making business products more adaptive through dynamic limits, installment options, virtual card controls and due dates that better align to receivables.

The report also links sentiment to activity. Firms that feel more confident about surviving the next two years make more credit transactions per month, including materially higher business card usage than firms that are struggling. It is a reminder that credit demand is not only about need. It is also about outlook. Growth-minded firms swipe more. They expand more. They plan more.

For providers including FinTechs and banks: SMBs are signaling a willingness to pay for value, and they are actively shopping for capabilities that fit their operating reality. The winners are likely to be the providers that bundle flexibility with control, and price those benefits clearly, rather than treating business credit as a static line and a monthly statement.

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.