REDWOOD CITY, Calif.—As small businesses grow more confident about their ability to secure credit, new research from i2c Inc. and PYMNTS Intelligence suggests credit unions and other lenders have a prime opportunity to strengthen relationships with entrepreneurs by rethinking their card and credit offerings.
The study, “SMB Growth Monitor Report: Small Businesses, Big Credit Needs,” finds that 83% of small and mid-size businesses believe they would be approved for a new business credit card—evidence of both resilience and unmet demand for more flexible, feature-rich products.
For credit unions serving business members, the results point to a competitive opening to pair their relationship-driven model with digital tools such as dynamic credit limits, virtual cards, and installment features that help members manage cash flow and growth.
The research, i2C stated, highlights that credit for SMBs is a critical tool for shaping daily operations and long-term growth. However, firms of different sizes use credit differently: larger SMBs with annual revenues exceeding $1 million use business credit cards for 39% of their credit transactions. In contrast, smaller firms with yearly revenues under $150,000 use business cards for only 30% of their credit transactions.
“To meet the needs of their SMB customers, card issuers need to deliver an agile and adaptive financial tool kit,” said Seth Perlman, global head of product at i2c Inc. “Small and midsize businesses are clearly indicating a readiness to pay for tools like dynamic credit limits and virtual cards to help them streamline operations, manage cash flow, and achieve their growth goals. Issuers that want to build loyal SMB customers will need to develop products that enable flexibility and control, moving beyond a one-size-fits-all approach.”
Key findings from the report include:
- Confidence in approval is high: 83% of SMBs believe they would get approved for a new business credit card, with nearly all high-revenue SMBs expressing the same confidence
- Different cards serve different purposes: SMBs predominantly use business credit to cover planned expenses (e.g., 53% of business card use is mostly or completely planned) but often turn to personal cards to cover unexpected or emergency expenses. Only 12% of business credit card use is mostly or completely spontaneous, compared to 21% for personal credit cards
- SMBs prioritize flexible options: Flexible spending solutions are at the top of the credit card wish list, including installments, dynamic limits, virtual cards, and spending controls. The average SMB is willing to pay an annual fee of $126 for flexible spending solutions like installments or dynamic limits
- SMBs look for top-quality features in cards: After flexible spending solutions, premium business rewards on everyday spending are the next most sought-after feature, with firms willing to spend an average of $112.24 annually
“For small to mid-size businesses, credit is far more than a financial convenience; it shapes how they operate and grow,” said Karen Webster, CEO, PYMNTS. “With confidence high and fear of denial less prominent, issuers now compete on value and adaptability, not just access.”