Over Half of Small Businesses Avoid Carrying Credit Card Debt

A New Role for Credit Cards in Small Business

Small businesses often see credit cards as essential operational tools, rather like consumers do. Surprising? Perhaps not.

SMB Credit Card Usage Report

This insight comes from the “SMB Growth Monitor: How Firms Use and Choose Credit Cards” report by PYMNTS Intelligence. The study, conducted in April 2025, surveyed 583 American small and medium-sized businesses (SMBs).

Shifting Patterns

It reveals businesses frequently blend personal and business cards. Keeping several cards active is common, with credit reliance growing for daily operations.

Opportunities for Issuers and FinTechs

Interestingly, there’s a distinct growth opportunity for card issuers and FinTech companies. SMBs suggest they’d use their primary cards more if they aligned better with industry-specific spending and risk management needs.

Integration and Customization

A tailored approach could enhance engagement. Features such as automation for purchase-heavy sectors and analytics for spending insights are becoming increasingly important. Cards might then serve as tools for smoother working capital and expense management.

Statistics Speak Volumes

It’s worth observing these intriguing numbers from the report:

• 54% of SMBs used both business and personal credit cards in the past year. The line between household and enterprise finance is indeed blurred.
• 82% utilised a card for ad hoc expenses, more so than the 64% who used it for recurring bills. Cards are often the go-to for unexpected purchases.
• 52% of SMBs pay off their balances monthly, indicating cards are viewed as convenient tools rather than borrowing instruments.

Supporting Young Enterprises

Credit card behaviour varies greatly among SMBs. Younger businesses use more available credit than their older counterparts, reflecting early growth cash flow challenges.

Urban Influence

Urban enterprises often mingle personal and business cards. Large city firms tend to hold three or more cards, offering choice but also complicating expense tracking.

Priority and Preferences

What SMBs prioritise in their wallets provides critical insights. High credit limits often dictate which card gets used first, closely followed by interest rates and rewards.

Future Preferences

Many SMBs would use cards more with higher limits, enhanced business-specific perks, and fraud alerts. It’s a guide for issuers striving for primary card status.

Conclusion

SMBs aren’t seeking exotic solutions. They desire products that reflect their operational realities. With well-designed features, businesses can enjoy enhanced financial discipline and a straightforward approach to expense management.

Advertisement Reminder

Finally, keeping abreast of what’s happening can provide strategic advantages. Consider making us your preferred source for news.