SMBs Added Financial Partners to Solve Cash Flow
Most small businesses now rely on multiple banking providers to access the credit and payment services they need.
Updated on Sept. 27, 2026 in Financial Services
Live Poll
Do you prefer to use one banking institution for all of your personal and business needs?
A new research study from Primax found that 86% of small and medium-sized businesses work with more than one financial institution. These firms now use an average of 2.8 providers to manage banking needs, a shift driven by the demand for complex credit and payment services as companies scale.
Why it matters
Businesses are diversifying their banking relationships to address persistent payment and credit challenges that hinder cash flow and investment. The trend highlights how companies move toward larger regional or national banks as their operational needs for treasury management and payroll grow beyond basic services.
Surveying 600 business decision-makers, the study found SMBs use an average of 2.8 financial institutions. While 53% of firms still use the same bank for personal and business accounts, nearly 40% of lower middle market companies face credit hurdles that impact their investment capacity.
The players
Primax
A financial services firm providing advisory and card program solutions to community-based financial institutions.
Visa
A global payments technology company that facilitates electronic funds transfers between merchants and financial institutions.
The details
As businesses scale toward the $50 million revenue threshold, they outgrow the capabilities of traditional community banking. This expansion forces firms to seek multiple partners to access advanced treasury management, payroll, and payment processing services. The migration of these complex services reflects a strategic need to maintain liquidity as credit challenges increasingly impact day-to-day operations.
Timeline
2026: Lenders begin reporting small business loan application data under Section 1071.
Market Landscape
The move toward multiple banking partners reflects a growing need for sophisticated credit products as firms scale. This trend anticipates the regulatory landscape created by Section 1071 of the Dodd-Frank Act, which will soon increase transparency in small business lending.
Operators experiencing cash flow constraints should evaluate whether their primary institution offers the treasury and payment tools necessary for their current size. If your credit needs exceed your provider's scope, assess the overhead costs of managing multiple banking relationships.
The takeaway
Banking diversification is a standard tactical response for growing companies that have outgrown a single lender's product suite. Review your firm's current credit and payment workflows to determine if your existing provider's capabilities align with your capital and treasury requirements.
What happens next
Lenders must begin reporting small business loan application data in 2026 in accordance with the Section 1071 rule.
Further reading
For more on evolving credit and banking trends, visit Financial Services.
Source note: This article includes information reported by The Fintech Times.
Live Poll
Do you prefer to use one banking institution for all of your personal and business needs?
