Visa finds Aussie SMBs rely on personal cards for cashflow

Visa has released research showing that 78% of Australian small and medium-sized business leaders use personal credit cards for business expenses, underscoring mounting cashflow pressure on smaller firms.

The study, conducted by Lonergan Research for Visa, surveyed 1,000 Australian SMB leaders. It found 67% do not always have sufficient access to credit, adding to strains already affecting day-to-day operations.

Cashflow management emerged as a persistent issue. More than half of respondents, 54%, said payment timing was a key problem, while 48% pointed to delayed revenue and 30% cited manual expense tracking.

Administrative work is also taking up significant time for some owners and managers. One in five said they spend more than five hours each month on tasks such as categorising expenses and uploading invoices.

Credit pressure

The findings suggest many business owners are filling working capital gaps with personal borrowing. More than half of SMB leaders, 52%, said they turn to personal finances when traditional credit options are unavailable or insufficient.

That reliance appears frequent rather than occasional. SMB leaders use their personal card about 94 times a year for business spending, while 47% do so at least weekly.

The figures point to a growing overlap between household and business finances as smaller firms remain sensitive to payment delays and limits on formal borrowing. Using a personal card may provide immediate access to funds, but it also shifts business risk onto individual balance sheets.

This blurring of personal and commercial credit can leave owners more exposed if trading conditions worsen or customers pay late. It may also complicate expense oversight and make it harder to separate company costs from personal spending.

Operational strain

Alongside cashflow pressure, the survey highlights routine administrative burdens that consume time in smaller organisations. Manual processes such as invoice handling and expense coding remain common, adding friction to already stretched finance functions.

For many small businesses, these are not isolated problems. Delayed income, uneven access to credit and manual back-office work can reinforce each other, leaving owners to cover shortfalls while managing the administrative consequences.

Visa Oceania Head of Small Business Catherine Coulter said the findings show how widespread these pressures have become. "Small businesses are juggling multiple financial pressures, from inconsistent access to credit through to delayed payments and time-consuming admin. These challenges don't just slow growth, they can also increase operational risk," Coulter said.

The survey was conducted online among Australian SMB leaders aged 18 and over across capital city and non-capital city areas. Responses were weighted to Australian Bureau of Statistics population estimates.

Blended finances

The extent of personal card use suggests formal business finance is not meeting all the needs of smaller firms. While larger companies often have dedicated credit facilities, many SMBs appear to rely on personal borrowing to smooth short-term mismatches between incoming revenue and outgoing costs.

This can include paying suppliers, covering operating expenses and handling other routine transactions before customer payments arrive. The survey does not break down spending by category, but the frequency of use suggests personal credit has become embedded in normal business activity for many respondents.

Coulter said the data also reflects a wider shift in how owners manage spending and payments. "These findings highlight how deeply intertwined personal and business finances have become for many SMB owners. There is a clear need for smarter payment options that give business owners greater efficiency, control and visibility - from virtual cards and expense management to digital acceptance tools," Coulter said.

The figures add to a picture of small business operators managing tight cash positions with limited room for delay, using personal credit as a practical source of liquidity when other options fall short.