As one of the world’s richest men, Jeff Bezos doesn’t have money worries today. But when he launched his business in a garage in Bellevue, Washington in 1994, access to capital was anything but certain. In those early days, credit cards helped keep his business afloat, covering essential expenses and giving Bezos the flexibility to keep building before steady revenue kicked in.
Decades later, that same reliance still holds true for many small businesses. Credit cards remain one of the fastest, most accessible ways to manage cash flow gaps, fund inventory, and handle day-to-day expenses, especially for businesses without easy access to traditional financing. For many business owners, they’re not just a convenience; they’re a critical tool for staying operational and growing.
Credit card satisfaction is rising among small businesses, according to JD Power. With about nine of 10 small businesses using credit cards for business purchases, the improved sentiment is thus widespread among small business owners.
Here are some details of this latest JD Power Small Business Credit Card Satisfaction Survey:
- Overall satisfaction rose eight points from the previous year to 716 (on a 1,000-point scale).
- Terms, benefits and rewards showed the most improvement.
- Co-branded cards exhibited far more improvement in satisfaction (17%) than plain bank cards. Small businesses were especially fond of reward cards tied to airlines, hotels and retailers, or cards that accrued points or miles.
- Financially challenged firms were especially fond of their credit cards, with satisfaction up 11%. About half of small businesses are deemed to be financially challenged, including about 60% of startups. Credit cards are essential financial tools for these firms, and they appreciate the use and benefits they receive from them.
Credit Cards and Cash Flow
Almost eight of 10 small businesses are concerned about cash flow, with the highest rates among minority-owned firms. One of the main benefits that small businesses derive from credit cards is as a tool to manage short term expenses, access capital, and stabilize cash flow. A credit card can help a struggling small enterprise stay in business.
Small businesses spend an average $13,000 per month on credit cards, with 70% using cards for operating expenses and 55% for inventory.
The Perks That Matter
Much of the rise in satisfaction is related to perks. The hunt for just the right rewards can steer small businesses to specific co-branded cards.
A small business that requires a lot of airline travel might be enamored of a reward card linked to an airline with good connections. Another might find a hotel-linked card more useful. Generally, the more generous and useful the rewards, the higher the satisfaction.
Finally, general point-accumulation cards like those offered by American Express can be attractive to small businesses for their broad reward opportunities.
How Small Banks Can Compete
A CFI might not be able to duplicate the rewards programs of a global financial firm, but there are other ways that smaller institutions can win the hearts and credit cards of small businesses.
Customization is a key. CFIs can offer credit cards with rewards tied to local merchants, or cash-back cards with special categories like business supplies or travel that small business owners appreciate. Employee cards can be customized with spending controls.
Here are a couple of examples of how other CFIs do business credit cards:
- Lake Ridge Bank in Wisconsin runs its own in-house credit card program and is able to custom tailor its credit cards to its business clients and also integrate the cards into an overall business account platform, which clients appreciate. They also offer individualized card designs that show off a business logo, so that the card is a point of pride with its business clients.
- Citizens Bank of Las Cruces switched from an in-house card that it found difficult to manage to one supported by ICBA and TCM Bank, finding the switch made its credit card offering more competitive.
Ultimately, small business credit cards are far more than a convenience — they are a lifeline for managing cash flow, accessing short-term capital, and earning meaningful rewards on everyday spending. While large issuers may dominate on scale and headline perks, CFIs have a clear opportunity to differentiate through customization, local relevance, and relationship-driven service. By aligning card features with the real needs of small businesses, CFIs can strengthen loyalty, deepen engagement, and position themselves as indispensable partners in their clients’ growth.
