33% of Small Businesses Say Paying Debt is a Challenge, 51% Concerned about Uneven Cash Flow

April 21, 2025

Bob Coleman
Founder & Publisher

Main Street Monday — 33% of Small Businesses Say Paying Debt is a Challenge, 51% Concerned about Uneven Cash Flow

Our final installment of interesting statistics from the Federal Reserve Bank’s small business credit survey:

Rising costs of goods, services, and wages remain the most commonly reported financial challenge. Firms are more likely to identify weak sales and paying operating expenses as challenges in 2024 rather than 2023.

The most important statistic for small business lenders is that 1/3 of businesses state a financial challenge is making their loan payments on time. The cause? In addition to rising costs, half say weak sales and uneven cash flow.

Financial challenges reported:
– Rising cost of goods, services, and wages: 75%
– Paying operating expenses: 56%
– Uneven cash flow: 51%
– Weak sales: 48%
– Making payments on debt: 35%
– Credit availability: 28%

Operational challenges include:
– Increasing sales: 50%
– Hiring and retaining qualified staff: 51%
– Supply chain issues: 29%
– Technology: 29%
– Government regulations: 29%

Some other interesting stats:
– 29% report being in business for over 20 years
– Geographic location is split at Urban 85% and Rural 15%
– 93% say they are a medium or low credit risk
– An interesting stat for SBA lenders is 23% of businesses are owned by individuals age 65 and over
– 20% of small businesses are at least partially owned by an immigrant
– 16% of small businesses are at least partially owned by a veteran