Phoenix Synergistics: Small Business Credit and Lending

August 2021 | Credit Cards, Loans, and Lines | The Traditional and Digital Environments | Alternative Competitors

Obtaining and accessing credit represents lifeblood for many small businesses. The small business lending environment has generally been dynamic and competitive. The impact of recent events, most notably the COVID-19 pandemic, on this space going forward is an issue of critical interest. Phoenix Synergistics has consistently found that a solid majority of small businesses use credit cards for business purposes—primarily as a payment mechanism. Exploring strategies to expand the credit utilization of this option is a key area of interest. Similarly, the role of personal credit in business operations and the potential for the array of credit products available—loans, lines of credit, and secured products—should be assessed.

The digital/fintech environment has opened the door to a new wave of players. Alternative providers (such as Kabbage and OnDeck Capital) have been notable actors in this space. Consequently, small business credit relationships that once may have been taken for granted as stable and long lasting are now subject to a degree of volatility and provider switching.

To attract and retain customers, providers must roll out and support innovative, digital solutions while continuing to meet the needs of small businesses using traditional modes of borrowing. More in-depth understanding of this space is vital to providers competing for share in the small business credit market.


National Survey

A total of 1,000 online interviews will be conducted with owners and executives of small businesses with annual sales of $50K to $5M in industries including manufacturing, wholesale, retail, and services.

Project Report

The final report, available in late August 2021, will present results of a Phoenix Synergistics in-depth analysis of national survey results. It will feature a Strategic Insights commentary examining the small business credit market.

Major Competitor Profile

A profile of overall financial activity for the top financial institutions used will be included as part of the project report.

Project Report Outline

  • Strategic Insights with key findings and implications
  • Competitive Intelligence
  • Survey Analysis
  • Survey Methodology

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