For the first time, small business cash flow has surpassed inflation as owners’ top concern. A new Small Business Cash Flow Trends Report from OnDeck and Ocrolus found that 31% of homeowners now cite cash flow as their biggest concern, just ahead of inflation at 29%. At the same time, 93% expect their business to grow this year.
This mix of confidence and caution is worth considering. Owners feel satisfied with the demand, but the daily reality of money coming in and going out is where the stress lies. If this sounds like your business, you’re reading the numbers correctly.
What the report actually found
The investigation is large-scale, which gives weight to the conclusions. It drew on 651 small businesses receiving working capital loans and more than 3.69 million financing requests over the previous 15 months.
Two characters stand out. A record 32% of owners expect significant growth, and more than 76% say they are now bypassing traditional banks for capital, also an all-time high. Confidence is increasing, as is the search for flexible financing.
| Concern | Share by naming it #1 |
|---|---|
| Cash flow | 31% |
| Inflation | 29% |
| Expect significant growth | 32% |
| Bypass traditional banks | 76% |
Such large numbers are worth trusting. A sample of hundreds of homeowners surveyed and millions of financing requests reflects real behavior, not a small survey. When so many businesses shift their primary concern to cash flow, it’s a signal worth heeding rather than ignoring.
Why Cash Flow Outpaced Inflation
The change makes sense if you think about timing. Inflation puts pressure on prices, but cash flow determines whether you can make payroll on Friday. One is a headwind, the other a heartbeat.
Growth also adds pressure. When sales increase, you often pay for inventory, staff and tools before customers pay you. It is precisely in this gap that healthy companies can still fall short, a trap we detailed in cash flow errors.
The concern is therefore rational. Owners are not pessimistic about demand. They are realistic about the time between expenses and payment.
How to Read Your Own Cash Flow
Start with a simple 13-week view. List the expected cash inflows and outflows per week, then observe where the balance drops. This short track map is easier to use than an annual forecast.
Focus on timing, not just totals. Getting paid faster and paying strategically may matter more than reducing costs, a framework we walk through in cash flow timing errors. Because timing determines survival, small changes to billing terms add up quickly.
Track one number closely: the days it takes to get paid. If invoices remain pending for 45 days, tightening the terms to 15 can free up weeks of lead without a single new sale. Faster collection is often the cheapest financing available to you.
Build a buffer while things are going well. For stable account and reserve habits, our guide to intelligent cash flow management presents a practical routine.
Where Founders Get Capital Now
The abandonment of banks is a story that deserves to be understood. While 76% of homeowners are bypassing traditional lenders, more are turning to online lenders, income-based financing and community options. Speed and flexibility often trump the lowest rate.
However, read the fine print before signing. Convert each offer into an annual cost so you can compare a bank line, an income-based advance and a card with the same conditions. The cheapest overall rate is not always the cheapest price, and the difference can be significant.
Approach this change with caution. Before signing, compare the true cost of capital, not just the monthly payment. For a broader view of small business credit conditions, the Federal Reserve report Small Business Credit Survey is a reliable resource in plain English.
Watch the trend for next year. If cash flow remains the main concern, expect more flexible financing products and more pressure to get the timing right. Homeowners who plan for the gap will sleep better than those who hope for it.
Cash Flow Questions, Simple Answers
What is the biggest concern for small businesses in 2026? Cash flow, cited by 31% of owners, just ahead of inflation at 29%.
Are small businesses optimistic? Yes. About 93% expect growth, and a record 32% expect significant growth this year.
Where do homeowners get financing? Increasingly outside traditional banks, with 76% now saying they bypass them to obtain capital.
