More Businesses Want Credit Built Around Their Cash Flow

Watch more: The SMB Fast Lane: Big Credit Needs, Bigger Growth

Small to medium-sized businesses (SMBs) rely on credit as a safety net and catalyst for growth.

They need cards that match the rhythm of their operations, support their cash flow patterns, and allow them to move quickly when opportunity strikes. Credit is not simply a backup plan for these firms. It is a working tool that fuels purchasing, payroll support, vendor expansion and travel tied to customer acquisition.

More than 8 in 10 SMBs expect to be approved for a credit card, reflecting strong optimism about their financial footing.

In a PYMNTS On Air panel discussion, i2c Global Head of Product Seth Perlman said the SMB optimism means approval is no longer the competitive battleground for issuers. The real battle isn’t about getting approved anymore; it’s about whether the card delivers exactly what SMBs need to thrive.

The challenge providers now face lies in the card’s structure, not in the speed of approval. SMBs want a product built around their business. That requires adaptable limits, meaningful controls, rewards, or rate options that match their objectives, and tools that simplify financial management rather than add more steps.

Structuring Credit to Fit Cash Flow

Royal Credit Union Vice President of Payments Jeni Brantner said the foundational work happens before a card is ever issued.

“We recognize that the true value comes not just from approval, but from appropriately structuring those credit offerings,” she said.

Her team weighs the goals, cash flow cycles, risk tolerance and operational patterns of each business and helps them navigate choices related to limits, rewards and repayment terms.

This guidance is critical because SMBs appreciate rewards, but they also rely on repayment terms that “foster financial stability rather than overextension,” Brantner said. With many SMBs juggling multiple responsibilities, automation is no longer optional. SMBs need preset controls, usage alerts and simple self-service capabilities that reduce administrative work.

Joint research from i2c and PYMNTS found that 56% of SMBs are very or extremely interested in a card that lets them choose rewards or a lower APR on each statement. Perlman said this level of interest signals an expectation that cards must be configurable and responsive. This surge in demand makes clear that the future of credit cards will be fast, flexible and built on processors that empower issuers to innovate at speed.

SMBs Want Tools, Not Card Management Responsibilities

“Small businesses are not in the business of managing a card program,” Perlman said. “They’re in the business of selling things.”

Providers must reduce friction by delivering flexible, self-service tools that work at the business level.

Through i2c’s platform, issuers can modify pricing, limits, fees or controls without code changes. SMBs can spin up cards for new employees, set departmental limits and access reporting in real time. The objective is to give SMBs tools that do not require effort or oversight and remove the onus of manual adjustments.

Seeing the Patterns Behind Spend and Growth

Renasant Bank Treasury Solutions Senior Product Manager and Vice President Melissa Moss said businesses come in with clear expectations. They want automation, simple workflows and easy access to data. They also want tools that reduce or eliminate fraud.

“They’re looking to us as experts and as their trusted adviser to help provide tools that are going to reduce, even eliminate, fraud,” she said.

Moss said her team analyzes each client’s monthly spend, their seasonal spikes and their growth trajectory to advise on appropriate credit limits. Many SMBs inadvertently use personal cards for emergency costs, so Renasant encourages consolidation into a single business program with limits that account for operational swings and planned expansion.

Looking at spend also helps identify when a business needs proactive outreach. A consistent decline in card activity prompts a check-in to understand whether needs have shifted or whether additional tools could help stabilize operations, Moss said. If Renasant also holds the deposit or lending relationship, it can more easily identify the right adjustments.

Education Sets the Foundation for Responsible Credit Use

For Royal Credit Union, education is one of the most important parts of onboarding. Brantner said her advisers help businesses distinguish between planned expenditures and surprise costs. Controls and defaults reduce the pressure on owners who are juggling multiple responsibilities, and alerts keep the business aware of how spend is tracking.

Education also gives SMBs confidence to use tools like virtual cards or limit adjustments when needed. Advisers explain optionality clearly so SMBs can self-serve rather than wait for assistance, Brantner said. It is a way to help them manage risk while keeping administrative work simple.

Why Tailoring the Card Matters

The right card can be a competitive advantage for issuers because SMBs notice when the tool fits their operations. Brantner called this relationship management at its core. When SMB confidence dips, Royal Credit Union offers a reevaluation of financial strategies, which can include switching to installment payments or adjusting spending limits.

Moss added that effective partnership requires watching for early signs of strain and reaching out before a problem forms.

“We want to see them succeed,” she said. “If they succeed, we succeed.”

Virtual Cards Deliver Control and Flexibility

Virtual cards are gaining traction because they give businesses precise control without disrupting workflows. Perlman said virtual cards are one of the cleanest ways to segment or contain unplanned spend. Moss detailed how virtual cards enable controls down to the penny, dynamic merchant category code restrictions, and specified activation windows. She called them “digital defensive tools” and said that they play an important role in fraud reduction.

Use cases range from vendor payments to student athlete per diems to stranded travelers who need immediate access to funds. Virtual cards also help SMBs manage petty cash, travel and one-time purchases without expanding risk exposure.

Willingness to Pay for Flexibility

SMBs are willing to spend for flexible spending privileges. Perlman said dynamic limits, modifiable limits and installment options are already available through i2c’s platform and can be deployed quickly. He also highlighted post-purchase installments as an option that can help SMBs structure payments more effectively and optimize line utilization.

Royal Credit Union positions these fees as investments in adaptability and efficiency, Brantner said. SMBs respond positively when they understand how features directly support their operational objectives.

Looking at Metrics to Adjust Limits and Reduce Friction

Credit lines should not be static, Perlman said. SMBs need limits that shift with growth, seasonal activity and changing expenditure patterns. i2c enables issuers to review their portfolios, apply rules and adjust limits proactively. On the consumer side, this is simple, but on the business side, it requires evaluating cash flow, projected revenue and transaction types.

Hybrid decisioning models, common in consumer credit, are expected to migrate to commercial programs over time, panelists said.

A Foundation for Growth

The goal is straightforward, Brantner said. SMBs want to focus on customers and growth. Providers must build the financial foundation that lets them do exactly that.

The role of the credit partner is to ensure “the businesses can focus on their growth knowing that they have the right financial foundation,” she said.