Revolving credit products such as credit cards and lines of credit are the most widely used borrowing tool by small-to-midsize businesses, with rewards credit cards used by more than half of such businesses, according to a new survey of SMB executives by U.S. Bank and PYMNTS Intelligence. The report found that 90% of SMBs used at least one type of borrowing tool in the past year, with nearly half identifying credit cards and lines of credit as their “go to” tool. Rewards credit cards were used by 51% of SMBs, making them the most popular tool, far higher than the 15% of SMBs that use other, non-rewards credit cards.
More than two in three SMBs surveyed said it was important for their primary financial institutions to provide multiple borrowing tools, with demand more pronounced among larger businesses, according to the report. Rewards credit cards were the most popular option for covering both planned and unplanned costs, with SMBs showing a slight preference for using the cards for planned costs, likely to maximize their ability to earn rewards.
