More small businesses appear to have been using credit cards as a source of financing this year, with an increasing portion of balances carrying interest as financial pressures build.
The average Bank of America small business credit card balance rose throughout the year, but the degree of increase varies across business revenue tiers. For those small businesses with annual revenue greater than $1 million, the average credit
card balance as of November 2023 was 20% higher than its 2019 average, the largest increase across revenue tiers
On the flip side, for the smallest firms, those with annual revenue less than $100k, the latest credit card balances were 9% higher than 2019 levels per Bank of America internal data.