How Small Businesses Use Credit Cards to Manage Cash Flow

Why Small Businesses Don’t Use Business Credit Cards

Small businesses often rely on a mix of business and personal credit cards to manage cash flow and expenses. This blending highlights gaps in current financial products that don’t fully address SMB needs and challenges.

The Reality Behind SMB Credit Card Use

According to the “SMB Growth Monitor: How Firms Use and Choose Credit Cards” report by PYMNTS Intelligence and i2c, over half of SMBs use both personal and business credit cards to finance their operations. Younger firms tend to carry balances more frequently, revealing cash flow pressures rather than strategic credit management. This trend is particularly pronounced in urban areas, where financial flexibility is critical for survival.

What SMBs Want from Credit Cards

Larger SMBs prioritize high credit limits that support their bigger operational needs. In contrast, smaller businesses seek cards that help them build credit over time and provide perks that support growth. Different industries have varied priorities, such as spend automation tools or fraud alerts, showing that one-size-fits-all credit products don’t meet diverse SMB demands.

The Opportunity for Financial Providers

The report also reveals that many SMBs would increase their card usage if providers offered higher credit limits, better rewards, and features tailored to their specific business sector. For financial institutions, this is a clear opportunity to develop products that not only support SMB operations but also foster loyalty and long-term growth.

Meeting these needs with innovative, flexible credit solutions will help financial providers capture a larger share of the SMB market and support the backbone of the economy.

Payment Solutions with Kubera Payments

At Kubera Payments, we help businesses across North America move millions of dollars daily, whether in-store, online, or on mobile. Our team of payment experts is here to guide you through the complexities of payment processing, ensuring your transactions are secure, reliable, and PCI-compliant. We have strong relationships with a wide network of acquirers and can help you find the right front-end and technology solutions to work together.

Get expert advice on optimizing your payments.

Contact our team at sales@kuberapayments.com or 604-484-9278.

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