Bluevine Report Shows Small Business Cash Reserves Shrinking Ahead of 2027
A new study by Bluevine reveals a significant decline in liquidity among U.S. small businesses. The share of owners holding only 7 to 14 days of cash on hand rose to 20% year-over-year, while those with one to two months of reserves dropped to 14%. Currently, 43% of small businesses operate with less than a month's worth of operating expenses in reserve. To maintain operations, many owners are absorbing costs personally; 42% delayed their own paychecks in the last year, and 45% used personal funds to cover business gaps. The construction and trades sectors are particularly vulnerable due to high fuel costs and late customer payments. As reserves dwindle, credit usage is shifting from funding growth to covering routine day-to-day operational expenses.
Topics: cash flow forecasting operational costs small business financial health SMB cash reserves