79% of Small Business Owners Put Personal Money Into Their Business in the Past Year, New Flute Report Finds

New research shows how payment delays and limited funding push business costs onto owners' personal finances 

TEMPE, Ariz., Oct. 22, 2026 /PRNewswire/ -- Flute, the payments platform for the everyday economy, released "The Cost of Waiting To Get Paid," a report finding that 79% of small business owners put personal money into their businesses in the past year.

The report also found that 57% of owners have $1,000 or more tied up in pending deposits, holds, or unpaid invoices at any given time. Together, the findings show how owners rely on their own savings and credit to keep their businesses running while they wait for payments to reach their accounts. Based on a survey of 209 U.S. small business owners, the report examines how they fund their businesses, how quickly they get paid, and what happens when cash runs dry.

"A business can have a good week of sales and still need the owner's savings to pay for the next inventory order," said Derek Dean, CEO of Flute. "If the money hasn't landed by the time their bills come due, owners cover the wait out of their own pockets. Over time, that puts pressure on their household finances and on the business. Payment providers already know what a business is bringing in every day. Flute uses that sales history to make funding easier to access, alongside faster payouts that put the money they've already earned to work sooner."

When business cash runs short, owners foot the bill

More than half of owners (52%) needed extra cash in the past year, most often to buy inventory that must be paid for weeks before it sells. To cover cash shortfalls, owners turned to business credit cards (48%), bank loans (47%), and their own savings (42%).

However, many never approached a lender. Only 37% applied for financing, and 28% of applicants received less than they requested or were denied outright. Smaller businesses faced the greatest barriers. Among businesses with less than $250,000 in revenue that needed cash, 27% could not access funding, compared with 0% of the larger businesses.

An overlooked source of capital

Payment processors already see a business's daily sales, but few owners turn to them for funding. Among owners who needed cash, just 4% used their payment processor, making it the least-used funding source.

But interest is higher than usage suggests. Nearly a quarter of owners (24%) would consider funding from their processor, putting it close to online lenders and friends or family. Despite this, only 37% have received a funding offer from their processor, with larger businesses more likely to receive one. In fact, offers reached 51% of businesses with at least $250,000 in revenue, compared with 24% of smaller businesses.

Revenue sits out of reach

Waiting for money to reach the bank adds another layer of cash pressure. According to the report, 58% of owners wait two or more days for bank settlement, and 73% say faster access to their own money would meaningfully change how they run their business. Larger businesses are more likely to have substantial amounts tied up: 73% of businesses with at least $250,000 in revenue have $1,000 or more waiting to clear, compared with 42% of smaller businesses.

Moreover, slow customer payments affect day-to-day decisions. Nearly two-thirds of owners (63%) say those delays forced them to change how they operated in the past year, with 35% delaying inventory purchases and 28% using personal savings or credit to cover the wait. Owners are drawing on the same personal funds they turn to when financing falls short.

Flute's working capital and instant payouts products, launched in July through a partnership with Jaris, address the cash pressures highlighted in the report. Owners can apply for working capital directly from the Flute dashboard, where they manage payments and deposits, with funding decisions based on the transaction history Flute already tracks.

Instant payouts give merchants access to a portion of their current day's sales, including on weekends and holidays, helping them cover expenses while payments settle. Together, the offerings give growing businesses faster access to funding and the sales revenue within the platform they already use.

To learn more about Flute's offerings, visit flute.com. Visit this link to access the full report.

Methodology
Flute surveyed 209 U.S. small business owners from August to September 2026. All respondents passed an attention check. Figures are rounded to the nearest percent. Some questions were asked only of relevant subgroups, including the 109 owners who needed cash and the 78 who applied for financing.

About Flute 
Flute is the payments platform for the everyday economy. Backed by Corsair Capital, Flute gives growing businesses the financial tools to run their operations efficiently, without the headaches or the price tag. Learn more at flute.com.

Media Contact
Emylee Eyler
PANBlast for Flute
[email protected]

SOURCE Flute