Flute Report Finds 79% of Small Business Owners Used Personal Funds to Cover Business Costs
A new report from payments platform Flute reveals that 79% of U.S. small business owners utilized personal savings or credit to fund their operations over the past year. The study, titled "The Cost of Waiting To Get Paid," highlights a significant liquidity gap caused by payment delays and unpaid invoices, with 57% of owners reporting at least $1,000 tied up in pending deposits or holds at any given time. Cash flow shortages are primarily driven by the need to purchase inventory ahead of sales. While many owners turn to credit cards and bank loans, a significant portion—particularly those with less than $250,000 in revenue—struggle to access formal financing. The report suggests that payment processors represent an underutilized source of capital, as only 4% of owners currently use their processor for funding despite interest from nearly a quarter of respondents.
Topics: business funding cash flow management payment delays small business financing