82% of Fast-Growing Firms Demand Flexible Credit

Fast-growing middle-market companies aren’t always losing opportunities because lenders said no. Many are losing them because available credit can’t move quickly enough to become useful.

That gap sits at the center of “The Emerging Middle Market: When Credit for Fast-Growing Companies Isn’t Really ‘Credit,’” which finds that 85% of accelerating larger firms say they have sufficient or more than sufficient credit. Yet 46% frequently or very frequently miss growth opportunities because they lack the credit to act, nearly three times the share of established larger firms.

A credit line can resemble a full reservoir behind a narrow pipe: The money exists, but too little reaches the business when it’s needed.

Key Points:

Speed becomes a credit feature. Forty-one percent of accelerating larger firms cited slow approvals as a barrier, the most common obstacle measured in the report. A company growing more than 20% a year can change sharply while an application moves through review. Faster decisions could help lenders finance the company in front of them, rather than the smaller business described by older records.

Underwriting often looks backward. Credit score requirements created a barrier for 39% of these firms, while profitability or cash-flow requirements affected 36%. Both measures reward companies with a long track record. Fast-growing companies may not have had enough time to build one, even when current sales and payment activity point to a stronger future. Direct links to accounting, payments and reporting systems could give lenders a more current view.

Personal credit fills the timing gap. Thirty percent of executives at accelerating larger firms cover at least half of their business expenses with personal credit. The pattern suggests that a personal card may sometimes provide funds faster than a business one. A quicker, more flexible commercial option could keep more borrowing within the company and help build its financial record.

The opening for lenders appears practical. Eighty-two percent of accelerating larger firms prefer faster, more flexible access to lower-cost credit. Providers may not need an entirely new product. They can improve approval speed, update reviews more often and let limits rise with the business.

The report, a PYMNTS Intelligence collaboration with i2c, also warns against treating the middle market as one group. Among accelerating smaller firms, 20% prioritize cost over flexibility, twice the rate of accelerating larger firms. Better credit will require different designs, but the path is visible: match the financing to the speed, size and stage of the company.