Bank of America attributes the rise in small business credit card balances in part to increased spending in 2021 and the first half of 2022.
The report focused on small businesses noted that credit card spending has remained at about the same level over the last year, even as balances have continued to grow. However, when adjusted for inflation, the report found that credit card balances are still below pre-pandemic levels for all categories of small businesses.
The flat credit card spending combined with the rise of balances “suggests to us that more small businesses are using credit cards as [a] source of financing this year with an increasing portion of balances carrying interest,” the report said.
