Why Instant Payments Are Becoming Essential for Small Business Cash Flow

When Timing Matters More Than Volume

For many small businesses, the most important payment is no longer the one they can plan for. It is the one they cannot.

Unplanned, non-recurring payments now make up a growing share of small business cash flow. These payments arrive without warning, vary in size, and often carry higher stakes than predictable invoices. When funds are delayed, the impact is immediate, payroll decisions, inventory purchases, and new work can all be affected.

As a result, speed and certainty have become just as important as volume. While more businesses are becoming aware of instant payment options, the real divide is no longer awareness. It is whether a business is set up to access funds quickly when timing matters most.

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Ad Hoc Payments Now Drive Cash Flow

Ad hoc payments account for more than half of all accounts receivable transactions for small and mid-sized businesses and nearly seven in ten dollars received. Unlike recurring invoices, these payments are often larger, less predictable, and harder to plan around.

As a result, delays matter more. Waiting days for a cheque or standard bank transfer is no longer just inconvenient. It can determine whether a business makes payroll, replenishes inventory, or takes on new work.

More SMBs are turning to instant payment methods to reduce uncertainty and stabilize cash flow. But adoption is uneven, and the gap between digitally ready businesses and those relying on manual processes is widening.

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A Growing Divide in Payment Readiness

Three data points highlight how quickly this divide is emerging:

• 32% of SMBs now receive ad hoc payments primarily through instant methods, up from 20% in 2023
• SMBs in digitally forward industries are 45% more likely than others to use instant payments as their main way of receiving ad hoc funds
• 73% of micro businesses earning under $100,000 annually say improved cash flow is the primary reason they adopt instant payments, an 18% increase in just seven months

The data points to a structural shift. Ad hoc payments are not only more common, they are often larger. About 34% of SMBs say these payments now typically exceed recurring payments, raising the stakes for how quickly funds arrive.

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Digital Systems Make the Difference

Industries that invested earlier in automation and integration are better positioned to benefit from faster payments. Businesses relying on manual accounts receivable processes are falling behind.

Only 24% of SMBs with mostly manual systems receive ad hoc payments instantly, compared with 37% of those using automated tools. Nearly half of micro businesses still depend on manual processing, limiting their ability to take advantage of instant payments even when customer demand is strong.

Cost remains the biggest obstacle. About one-third of SMBs decline instant payment options because of fees, and that share has grown. Integration challenges add to the friction. Fewer than one in four SMBs use third-party tools to support instant payments, leaving many without simple ways to connect faster rails to existing workflows.

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From Upgrade to Infrastructure

The report makes clear that instant payments are no longer a niche enhancement. They are becoming part of core payment infrastructure.

For small businesses, the question is no longer whether faster payments matter. It is whether their systems allow them to access those funds when timing is critical. For providers, the challenge is to lower costs, simplify integration, and meet businesses where they are.

As ad hoc payments continue to shape cash flow, speed and certainty are becoming competitive advantages, not optional features.

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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 fraud prevention and payment security. We work closely with acquirers and technology partners to ensure your transactions remain secure, compliant, and reliable.

Get expert advice on strengthening your payment security. Contact our team at sales@kuberapayments.com or 604-484-9278