US small firms lean on personal credit, survey finds

Bluevine has published a survey finding that 75% of US small business owners used personal credit for business expenses over the past year. It also found that one in four recent financing applications were delayed or denied because of application mistakes.

The survey of 864 small business owners points to preparation gaps in the borrowing process. While 65% of respondents had applied for a business line of credit or term loan in the past 12 months, 73% did not research lender approval requirements before applying, 72% did not update financial statements, and 56% did not check their business credit score.

Those gaps appear to be pushing many owners toward household borrowing tools instead of business finance. Three-quarters of respondents said they used personal credit cards or personal loans for business costs in the last year, up from 49% in Bluevine's 2025 data.

Application errors were also a meaningful reason for delays and denials. Among owners who faced problems in their most recent application, 12% said they were surprised by the length of processing, 11% discovered their credit score was lower than expected, and 8% applied without understanding lender requirements.

The findings suggest younger companies face a steeper challenge. Businesses that were five years old or younger reported more frequent issues, with 54% saying they had problems in their most recent application, compared with 24% of companies that were at least six years old.

Owners of newer businesses were also more likely to rely on personal borrowing. Among respondents with younger businesses, 44% used personal credit cards for business needs and 20% used personal loans.

Personal strain

The survey also examined the effects of mixing business and personal finances. Among the 41% of owners who currently use personal credit cards for business expenses, more than four in five said the practice had harmed their personal finances.

That impact showed up in several areas: 23% reported higher personal credit utilisation, 16% said it created household stress or conflict, and 12% said it lowered their personal credit scores.

Aditya Narula, Senior Vice President and General Manager of Lending and Credit at Bluevine, said the issue extends beyond day-to-day card balances.

"Using personal credit cards for business expenses can create risk beyond utilization. It can blur personal and business finances, limit the owner's ability to build business credit, and make tax or cash-flow tracking harder. Over time, it may constrain personal borrowing capacity for a mortgage, car loan, or emergency needs. A stronger application starts before the application itself," Narula said.

Preparation gap

Access to dedicated business finance remained an important source of reassurance for owners managing uncertain costs. According to the survey, 68% of small business owners said having a business line of credit or term loan significantly reduced stress about covering upcoming expenses or emergencies.

That finding sits alongside evidence that many applicants are still entering the process without basic paperwork in order. Current profit and loss statements, recent bank statements, accurate business information and a clean credit profile can reduce back-and-forth during underwriting, Bluevine said.

Narula said better preparation can shorten the process.

"A prepared application can materially speed up the process because it reduces back-and-forth. Current P&Ls, recent bank statements, accurate business information, and a clean credit profile help lenders verify your business faster. The biggest unlock is consistency: when documents, revenue, ownership, and credit history tell the same story, decisions move faster," he said.

The survey was conducted online by Centiment over two days in May and was based on completed responses from 864 US adults verified as small business owners. Bluevine said the results were unweighted and carried a margin of error of about plus or minus 3% at a 97% confidence level.

Bluevine, founded in 2013, said it has served more than 1 million customers, delivered more than USD $17 billion in loans and holds more than USD $2 billion in managed customer deposits.