Why Small Businesses Don’t Use Business Credit Cards  

Small businesses run on big decisions—but when it comes to credit card usage, many are blending business and personal finance in ways that reveal shortcomings in today’s financial products. That’s one of the key discoveries in “SMB Growth Monitor: How Firms Use and Choose Credit Cards,” which uncovers how SMB credit behaviors vary by business age, revenue, geography and industry.

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Some of the most surprising findings? More than half of SMBs use both business and personal credit cards to finance their operations, and the majority of younger firms carry balances, indicating a strain on cash flow rather than strategic leverage. Credit card usage isn’t just a matter of convenience—it’s a window into SMBs’ survival tactics, aspirations and barriers to growth.

What makes a card earn the top-of-wallet spot? That depends. Large SMBs prioritize high credit limits. Smaller ones want cards that help them grow, with tools to build credit, scale credit limits and access better perks over time. Meanwhile, firms in different industries have sharply distinct needs.

This report also sheds light on how SMBs would increase their card usage if their needs were better met.

“SMB Growth Monitor: How Firms Use and Choose Credit Cards,” a PYMNTS Intelligence and i2c collaboration, surveyed 583 SMBs across a range of industries and revenue tiers to understand how they use credit cards, what shapes their preferences, and how card features influence engagement. The survey was fielded from April 4, 2025, to April 22, 2025.

Inside “SMB Growth Monitor: How Firms Use and Choose Credit Cards”:

• Discover how more than half of SMBs—especially in urban areas—blend personal and business credit use, and what that means for financial institutions designing modern credit tools.
• Analyze how younger and smaller SMBs use more of their available credit—and carry balances more often—revealing unmet cash flow needs and an urgent demand for tailored solutions.
• Uncover the features that determine which card wins “top-of-wallet” status across different business sizes and revenue levels.
• Explore how industry-specific priorities, from spend automation to fraud alerts, can drive deeper engagement and boost card usage.
• Examine why many SMBs say they would use their cards more frequently if providers offered higher limits, better rewards and perks designed for their sector.

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Read the full report to see how—and where—these opportunities lie.

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